The weakly supported anniversary statement on the Hague ruling showed how isolated the US and Australia have become on the South China Sea, with ASEAN preferring diplomacy over confrontation. But far more significant for Australia’s regional diplomacy, the Philippines was the only ASEAN member to sign on. Australia again finds itself out of step with our immediate region, despite the Foreign Minister’s endless incantations about ‘ASEAN centrality’. Closer to home, the South China Sea incident added another layer of sensitivity to an already delicate maritime equation. Negotiations on a Code of Conduct for the South China Sea continued, with eyes fixed on further progress ahead of the November Summit.