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China's geopolitical ambitions and growing military capabilities and Southeast Asia's perceptions of a rising China will play a crucial role in shaping the future of Southeast Asia and the U.S. military posture in the region. Examining the role of regional states in developing a hedge against the possible emergence of overly aggressive China, the authors find that rather than confronting a conventional attack, the U.S. and the Southeast Asian countries are likely to find a continuation of China's creeping irredentism and ambiguous threats. Southeast Asia is likely to prove a critical testing ground for a third way of dealing with China's rising power while deterring and preparing for a possible Chinese challenge. The report recommends that the U.S. adopt an incremental approach to this hedging strategy, focus on peacetime military engagement, strengthen military ties, and develop a more robust and diversified network of access arrangements with Southeast Asian states.