The US and the Philippines kicked off one of the largest military exercises in waters near the South China Sea on Monday. These joint military drills take place annually but this year’s come amid rising tensions between China and the Philippines. The countries are sparring over control of the waterway, which is rich in energy reserves.

On today’s Big Take, host Oanh Ha and Bloomberg Senior Editor Bill Faries break down why who controls this vast body of water matters for South East Asia and the rest of the world.