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The purpose of this research is to study the background and importance of dispute and the method to settle dispute in South China Sea, covering the five ASEAN nations (Malaysia, Indonesia, Philippines, Brunei and Vietnam) mainland China and United States of America. This research is qualitative research in the form of documentary research. The result of this research finds that ASEAN has tried to manage the dispute through dialogue and Consultation and has not yet been successful in playing mediating role due to lack of consensus among ASEAN members. Furthermore, ASEAN as a collective organization cannot be a joint party in solving the territorial disputes in the South China Sea swing to ASEAN members may have variegated interests and relationship with mainland China. Thus, the ASEAN members do not want to discontent and hostile to mainland China. During the 6th ASEAN – China Summit on 4 November, 2002 at Panompenh, Cambodia, ASEAN – China Foreign Ministers jointly signed The Declaration on the conduct (DOC) for all parties in The South China Sea and on 21st July 2011, ASEAN – China Foreign Ministers have ratified the guidelines on the implementation of DOC at Bali, Indonesia.
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