This chapter explores five key challenges faced by New China in ocean strategic issues. It first examines the nature of the dotted line in the SCS and the legal status of the waters within it, including theoretical analysis, formation process, and related legal status. Then, it discusses the attributes and status of the maritime features of the Nanhai Zhudao, covering the origins of the problem, the integrity and independence of the island regime in the law of the sea, connotation analysis of relevant terms for island and rock constitutive elements, and suggestions to improve the island regime. Next, it analyzes the impact of the SCS arbitration on the law of the sea, arguing that it cannot resolve disputes, affects the integrity of the law of the sea system, is not conducive to the stability and development of ocean order, and puts forward some thoughts. It also studies the FONs in the adjacent waters of the Nansha Islands, including examples of U.S. warships entering without authorization and China’s attitudes, legal issues involved, the development stage and application of the UNCLOS system, as well as measures and prospects for China to maintain its rights and interests in the SCS.