The South China Sea is a significant area of tension as various countries like China, Taiwan, Vietnam, Malaysia, and the Philippines are involved in conflicts and military build-up. Trade routes in the South China Sea are crucial for the transportation of goods, including electronic and toy components, which are essential for creating consumer goods in the West. Recent developments, such as the Philippines allowing US troops access to military bases facing the South China Sea, could potentially lead to increased American presence in the region. The escalating conflicts in the South China Sea pose a threat to global trade flow, making it a potential flashpoint for the disruption of trade routes.