New dynamics in the South China Sea are creating significant political and economic tensions in Southeast Asia. This area is in the world spotlight because of its abundant natural resources and strategic shipping lanes. Territorial conflicts in the South China Sea involve several countries, including China, Vietnam, the Philippines, Malaysia and Brunei, each claiming rights to territory and resources. One of the factors that triggers tension is the exploration and exploitation of energy resources, such as oil and gas. The discovery of energy reserves in the region provides an incentive for the countries concerned to strengthen their claims. China, with lofty maritime ambitions, is building artificial islands and increasing its military presence in the area. The move sparked responses from neighboring countries and the United States, which supported a test of freedom of navigation in international waters. The Regional Comprehensive Economic Agreement (RCEP) and other free trade agreements in Southeast Asia also influence this dynamic. RCEP member countries hope that through cooperation in trade, political and economic stability can be maintained, even though tensions in the South China Sea are still disturbing. The existence of the North Atlantic Treaty Organization (NATO) and its military cooperation with Southeast Asian countries, including Indonesia, Malaysia and Singapore, shows that external parties also play a role in the dynamics of this region. NATO wants to ensure that freedom of navigation is maintained and that a major power like China does not dominate the entire area. Aspects of multilateral diplomacy, such as ASEAN, are important in resolving this conflict. ASEAN plays a role in maintaining dialogue between countries by prioritizing a peaceful approach. Nonetheless, divisions within ASEAN over South China Sea claims prevent a more solid agreement to address the issue. Some member states have different economic and political interests, which causes difficulties in formulating a common position. People in the countries involved are increasingly aware of the importance of this issue. Social media serves as a platform to disseminate information and raise awareness about the situation in the South China Sea. Civil society activism has also begun to increase, with campaigns to demand a more assertive foreign policy regarding regional defense. In the context of climate change, dynamics in the South China Sea are also affected. Climate change is triggering an increased frequency of natural disasters, such as tropical storms and sea level rise, which can damage infrastructure and resources. Countries in the region must collaborate to face these environmental challenges, which could create a new basis for cooperation in the South China Sea. Instability in the South China Sea affects foreign investment and the regional economy. Many investors are hesitant to invest their capital in the countries involved, due to political uncertainty. However, countries that are able to accommodate investment by offering potential stability and transparency in infrastructure development can attract more investors. Firm action from the international community, including economic sanctions and UN resolutions, can be played in mitigating aggression in this region. International cooperation and diplomatic pressure are essential to ensure that every country respects international law, including the UN Convention on the Law of the Sea (UNCLOS). Through this analysis, it is clear how complex the new dynamics in the South China Sea are, with interactions between international powers, regional interests, and environmental challenges that must be faced to achieve a peaceful resolution.