Just when it seems the tensions between China and its neighbours in the disputed waters - and with Vietnam in particular - have settled down, along comes another incident to flare it all up again.

Thankfully, so far the dispute is only a war of words and hopefully it stays that way.

But anyone who hoped last year's heated dispute between the nations was going to be a one-off looked sorely mistaken.

The new imbroglio was sparked late last month in an incident between Chinese authorities and some Vietnamese fishermen.

The 11 fisherman reportedly tried to seek refuge in the Paracel Islands, a collection of islands in the middle of the disputed area, during a storm.

According to the Vietnamese, however, the fishermen were blocked by Chinese forces which then allegedly assaulted and tried to rob them.

A formal protest has been lodged with the Chinese embassy in Vietnam, although China's foreign ministry has denied the Vietnamese version of events.

As Vietnam vented its spleen about China's alleged actions, a senior Chinese military official was fanning the flames with a provocative call to establish a Chinese coastguard to police the region.

There's never a shortage of Chinese commentators willing to weigh in with some controversial comments on sensitive regional issues and this instance is no different.

According to The China Daily, the "senior Chinese military figure" told reporters the Chinese coastguard should be formed to "manage maritime disputes" with its neighbours, particularly in the South China Sea.

The prospect of a new naval force designated to sort out the disputes will no doubt sit uncomfortably with the neighbours, although the military official noted that Chinese fishing vessels were already being expelled and their captains arrested by similar vessels controlled by the likes of Vietnam.

The tensions, which have been simmering between the various nations for decades, are increasingly bringing in foreign companies eager to test the highly prospective waters.

While the latest dispute was playing out between Vietnam and China, English company Forum Energy was reasserting its commitment to explore a block granted to it by the Philippines government but disputed by China.

And a subsidiary of India's state-owned Oil & Natural Gas Corp also plans to defy Beijing's warnings and drill in another area granted by Vietnam and claimed by China.

Australian company Neon Energy also has a stake in a licence that straddles the disputed waters but is focusing its work solely on the portion of the block that sits outside the disputed zone.

The chances of the South China Sea tensions petering out any time soon look remote.

Despite all the conjecture over the state of the Chinese economy, its demand for oil continues to grow strongly.

According to Macquarie Equities analyst James Hubbard, Chinese oil demand during February was up a huge 8.6% year-on-year to 9.9 million barrels a day.

The group also estimated that China's natural gas demand rose 21% year-on-year in January.

China's demand for both commodities appeared to be at record highs.

Against that backdrop, it's unlikely China will lose its keen interest in the South China Sea any time soon.