Early 2012, the CPC and the Philippines bilateral happened fishing conflict in the Huangyan Island (Scarborough Shoal, we called democracy reef). The South China Sea is involved in the complicated international strategic structure, the interaction between political and economic decisions, and the interlocks and influence upon important interests of marine resources. Sino-Philippines Huangyan Island conflict caused the most controversy recently. This article will analyze conflict through 2012, and focus on the key point which triggered off controversy between China and Philippine. They are about management of the many hidden resources around the waters, territorial sovereignty identified issues and the cognitive differences. After the Sino-Philippines Huangyan Island conflict, what does it mean of the implementation of the US-Philippine joint military exercises in nearby waters? Facing the Huangyan Island dispute, whether the CCP can continue to advocate "shelving disputes, and promoting joint exploration and development" policy is worth continuing observation and research in the future.