As the South China Sea issue was addressed during the Asia Security Shangri-la Dialogue, a Chinese official has said that the island claimed both by China and the Philippines are clearly outside the latter's territorial boundaries according to Manila's own cartography.

For more on this, we're joined in the studio by Zhang Junshe, senior captain at the China Naval Research Institute.

Q1: How will a closer U.S.-Vietnam relationship affect the South China Sea issue?

Q2: Let's wind back a little to the Shangri-La Dialogue, where Panetta gave a speech on U.S. strategy for the Asia Pacific region. Head of the Chinese Delegation, Lieutenant General Ren Haiquan has responded to Panetta's speech. He said he appreciates the positive answer given by Panetta regarding the South China Sea issue, but also said China should be fully prepared for any challenging international situation. He's even touched upon the Chinese Government's long-term strategic plans. Does that indicate China's concerns over a strategic shift by the U.S.? What significance do you read into his remarks?