The rise of China as a regional and global power has been unprecedented in world history. It has elevated itself from an utterly impoverished agrarian society to one of the most powerful economies, advancing the world towards a multipolar system. On one hand, the United States continues to see China as an opportunity for economic cooperation to resuscitate its hard-hit economy; on the other hand, it pursues an “anti-China Containment” policy to counter any efforts on part of China to challenge its supremacy in world affairs. Whether China can gradually erode the foundations of U.S. influence in Southeast Asia without the actual display of force will test the pragmatism of the Chinese mind-set. This article aims to analyze the Sino-U.S. rivalry for the domination in Southeast Asia and its implications.