Clearly, something has gone wrong with the U.S. Asian policy that has now been in place for more than forty years. Today, China possesses military and economic power undreamed of in the 1970s. And it has embarked on a course that seeks fundamentally to alter the political and territorial status quo in Asia while using military force as she seeks to acquire territories she claims, far from her continental territory. This article surveys how this new situation developed and details the problems it poses. It concludes that neither we nor our allies understand the present situation and are caught unprepared. The situation can be managed and retrieved to be sure, but not without some major and quite unexpected changes.