The paper evaluates the key factors that have predominantly increased the maritime competition between the United States and China. The authors argue that, due to the diverging naval interests in the South and the East China Seas and the growing competition to acquire maritime security technology, the momentum of maritime rivalry has immensely escalated between the two states. Based on strategic maneuverability in maritime security, this paper evaluates the rising strategic ambiguity posed by China’s anti-access area-denial (A2/AD) system vis-à-vis the United States. It further illustrates U.S. All Domain Operation (ADO) and China’s rapid emergence as a maritime competitor in Asia. The evaluation demonstrates the repercussions of miscalculations and highlights that the perceived mutual rivalry has come to the point that both sides are muddling through the dynamics of misperception and security-dilemma scenario which has increased the likelihood of strategic miscalculations.