China’s growth has brought important benefits to Southeast Asia. China’s “new diplomacy” has accommodated many of the region’s political concerns and its economic expansion has been an engine of growth for Southeast Asia. However, China’s rise brings challenges as well. China’s rapid naval build-up, more intensified disputes in the South China Sea, environmental problems and questions over China’s ultimate goals create concerns in the region. Southeast Asia’s strategy has been to accommodate China’s rise while striving to maintain the American position in the region. Southeast Asia has been successful in this strategy, although this balance will be increasingly difficult as China’s power increases.