The Chinese government has now started building up its defences in the South China Sea to ward off any attack on the disputed waters which they claim to own.
But associate Fellow with the Asia-Pacific Programme at Chatham House, Bill Hayton, says tensions in the disputed water can have "major economic implications"
Hayton said: "Then you've got Korea and Taiwan plus the southeast Asian countries."
"You've got a huge amount of trade crossing the South China Sea, some estimates say around $3.5trillion a year goes through it," Hayton said.
China has been engaged in territorial disputes with several nations in the past several weeks.
Source: Just Earth