South China Sea Code of Conduct Talks Stall Over Enforcement Mechanism

ASEAN and China Fail to Agree on Binding Dispute Resolution

Negotiations between ASEAN and China on a South China Sea Code of Conduct reached an impasse during the 42nd round of talks in Phnom Penh on February 11, 2026, over the fundamental question of whether the code should include a binding enforcement mechanism. ASEAN negotiators proposed an arbitration clause modeled on the dispute settlement provisions of the UN Convention on the Law of the Sea, which China rejected.

Chinese Assistant Foreign Minister Nong Rong told reporters the code should rely on "diplomatic consultation and good faith" rather than "legalistic mechanisms imported from outside the region." The Philippines and Vietnam, the most vocal proponents of binding enforcement, said a non-binding code would be "no more effective than the 2002 Declaration of Conduct, which has failed to prevent escalation."

Sticking Points

Beyond enforcement, three issues remain unresolved after nine years of formal negotiations: the geographic scope of the code (China insists on excluding the Paracel Islands, which it fully controls, from coverage); whether the code applies to artificial islands and reclaimed features; and the rights of non-ASEAN parties, including the United States and Japan, to transit and operate in covered areas.

The original 2017 framework agreement envisioned completion of the code by 2021. Deadlines have been repeatedly extended, with the current target of "early 2026" now also expected to slip.

On-the-Ground Tensions

The diplomatic stalemate contrasts with escalating incidents at sea. The Philippine Coast Guard reported 47 encounters with Chinese vessels near Second Thomas Shoal in 2025, including water cannon attacks on resupply missions and dangerous maneuvers. Vietnam reported 23 incidents near the Paracel Islands involving harassment of fishing vessels.

The Center for Strategic and International Studies' Asia Maritime Transparency Initiative documented that China added 128 hectares of new land reclamation across seven features in the Spratly Islands during 2025, the most since the massive build-out of 2013-2016.

Alternative Approaches

Some analysts argue the COC process has become a diplomatic distraction. Greg Poling, director of AMTI at CSIS, said "the code of conduct was always meant to be aspirational, not operational. The real question is whether ASEAN states are willing to impose costs for violations, and a non-binding code provides no framework for doing so."

Indonesia's Foreign Minister Retno Marsudi, the incoming ASEAN chair for 2026, said she would make COC completion a priority of her chairmanship and proposed a "leaders' retreat" format to bypass the technical-level impasse. The next round of talks is scheduled for April 2026 in Jakarta.