The recent Pentagon analysis of China’s military development noted that China is increasing its reach into the South China Sea and Indian Ocean Region. Southeast Asian countries and India are concerned about this development. Meanwhile, the U.S. is seeing its naval power decline as China grows stronger. These trends present strategic opportunities for U.S. foreign policy in the region. In many ways, increased U.S. involvement in the region and support for multilateral collaboration could turn these lemons into lemonade.