As of recently as I'm sure people have heard, the dispute over the South China Sea is getting worse as the days go on. Friends of mine in China say it's permeating the news every single day and that people there are getting anxious with the government for not more aggressively pursuing Chinese claims in the area.
Basically, the main belligerents are China and the Philippines at this time, though Malaysia, Brunei, Vietnam, Taiwan, and even Indonesia are involved as well.
Here is a map of the claims for reference
As you can see, it is China and the Philippines who are overwhelmingly claiming the most here. One would think that the Philippines would simply be muscled into giving up their claims due to their overwhelmingly weaker armed forces, but they are seeking aid from the US who are happy at this time to counter Chinese forces in Asia. President Obama called for a "pivot" in US foreign policy to Asia and is essentially containing Chinese growth of power.
Basically, while I do not think this is going to erupt into a war between major powers, it certainly brings up a few things here. Should the US respond to the Philippines requests for aid under the mutual defense treaty we have with them? Should China be contained at all by the international community for essentially muscling nations into giving it islands?