The author traces the evolution of China-ASEAN relations since the early 1990s and examines some of the key factors that have contributed to the positive developments in bilateral ties. He describes and analyzes how China and ASEAN have managed the territorial disputes through negotiation and compromises; looks at the expanding economic ties between China and ASEAN member states and examines the politico-strategic, as well as economic rationales for establishing a free trade area; and evaluates the emerging yet still limited defense and security ties between the two. He also assesses the implications of the growing China-ASEAN ties for U.S. interests in the region.