The developments in the last five years in South China Sea has gained international attention following the Permanent Court of Arbitration (PCA) ruling in favour of the Philippines. The ruling clearly stated that the China’s claim of nine dash line and the proclamation of Exclusive Economic Zone for the islands in South China Sea is not acceptable under the provisions of international law and UNCLOS 1982. Subsequently, the Philippines sensing that the international community is not pressurising China to accept the ruling of the PCA changed its stance and started gravitating towards China to seek certain concession and protect its marine assets in the contentious region. The negotiations about Code of Conduct (CoC) in South China Sea also gained momentum and it was perceived that China might accept certain regional norms and a standard operating procedure might be accepted. The draft COC has become large in content and the possibility of a common consensus died when China started propagating that it would prefer bilateral negotiations with other claimants rather than accepting the multilateral negotiations.