This atmosphere changed in 1992 when China issued a new law on its claims over these regions. In response to the same, ASEAN Foreign Ministers issued over the Philippines initiative for South East Nations. They launched the declaration known as Manila declaration which asked the parties to exercise self-restraint. The Vietnamese Ambassador in Manila expressed their support for the statement of the foreign minister. Chinese government claimed that there were many positive elements in the declaration. The disputes were further increased when there were developments including the growth in the demands of hydrocarbons such as oil and natural gas to satisfy the needs of fast growing economies of the world. This gives rise to the fast growing economy in China. Further in 1996, China issued the baseline Declaration which led to the reiteration of its sovereignty over this region. After, this there was unintended consequence by UNCLOS to exacerbate and compete for the control of the maritime spaces.Still in the earlier 1990s, after the end of Cold War, there was a building of a new multilateral cooperative arrangement.
Due to this, the regional discourses on South East Asia were dominated by the efforts to build the confidence and to promote functional cooperation by different nations such as Indonesia and Canada to manage the conflicts over this region. There were a number of workshops done in order to avoid sensitive issues in these areas. Though the mutual cooperation observed a major blow during the times of 1995 when China Occupied the region of Mischief reef in South China Sea, which was closer to Philippines. After this ASEAN issued a concern statement for the initiative that was taken by China. Philippines during those times faced a huge pressure because of this occupation by China. Philippines was also facing many internal issues because of the consequences of the closure of the military forces by US in 1992. The tensions between Philippines and China continued to grow till 1997-98. After this, ASEAN offered a negotiation on the Code of Conduct (COC) with China to prevent the confrontations over this region. In order to reach an agreement, it took around four years. It was termed as the Declaration of Conduct of Parties in South China Sea. In order to implement the guidelines further, it took nine years.