The United States has announced plans to construct two military boat maintenance facilities on the western Philippine island of Palawan—moves that observers say could further inflame tensions in the South China Sea, where territorial disputes continue to strain relations between Beijing, Washington, and Manila.
According to a statement released by the U.S. Embassy in Manila, the U.S. Navy will fund and oversee the construction of a boat maintenance facility at the Naval Detachment Oyster Bay in Ulugan Bay, Palawan. This facility will enhance the Philippine military’s ability to maintain and deploy its small naval vessels in the region. The U.S. Naval Facilities Engineering Systems Command officially issued the solicitation for the project design and construction on July 7.
A second facility is also being planned in Quezon municipality, Palawan—just 257 kilometers east of China’s Ren’ai Jiao (Second Thomas Shoal), a flashpoint in ongoing maritime tensions. Documents obtained by U.S. Naval Institute (USNI) News highlight the strategic importance of both sites, suggesting they are intended to strengthen rapid deployment capabilities in contested waters.
The Quezon facility is expected to accommodate at least five vessels, including rigid-hulled inflatable boats and “assault boats,” which were previously observed during a ceremonial handover to the Philippine Armed Forces’ Western Command—the unit responsible for operations in the South China Sea. Reports suggest both maintenance sites may also be configured to support unmanned surface vessels, further enhancing Philippine maritime flexibility.
Although U.S. officials, including acting embassy spokesperson Glenda Wallace, stressed that the projects are not military bases and were approved in line with Philippine and U.S. regulations, Chinese experts and analysts are unconvinced. Wallace maintained the facilities are meant solely for repair and maintenance and will include rooms for equipment storage and mission planning.
Chinese defense observers view the move as a veiled military maneuver. Zhang Junshe, a senior research fellow at the PLA Naval Research Academy, warned that the facilities may be used to support a more aggressive “wolf pack” strategy—deploying swarms of smaller, faster boats to disrupt or harass larger Chinese vessels in disputed areas. Such tactics, Zhang said, may serve dual roles: military provocation and psychological warfare aimed at portraying China as a maritime aggressor and rallying international support for Manila.
“The political symbolism of U.S. support to the Philippines now outweighs the actual utility of these small boats in combat scenarios, especially when faced with China’s advanced naval capabilities,” Zhang added.
Echoing similar concerns, Chen Xiangmiao, a research fellow at the National Institute for South China Sea Studies, emphasized that the geographic proximity of the planned facilities to key maritime features in the South China Sea signals clear military implications. Chen suggested the infrastructure could enable the U.S. to gradually expand its operational footprint in the region by using the Philippines as a forward logistics and deployment base.
“This is a low-cost but high-impact model of military cooperation,” Chen said, noting that such facilities could embolden Manila to adopt riskier strategies in the disputed waters. “It increases the likelihood of miscalculations and unintended confrontations with China.”
Tensions between China and the Philippines have already been on the rise in recent months. Just days before the U.S. announcement, a Philippine Coast Guard vessel reportedly engaged in what Beijing described as “provocative” maneuvers near Huangyan Dao (Scarborough Shoal)—an area under de facto Chinese control but claimed by Manila.
According to Chinese authorities, the Philippine vessel PCG-9701 deliberately approached Chinese Coast Guard vessels at high speed, coming within just 100 meters, in what they described as a dangerous action that threatened navigational safety. The incident is the latest in a series of maritime confrontations that have escalated the already fragile status quo in the South China Sea.
Zhang accused Manila of becoming increasingly emboldened by closer coordination with Washington. “The Philippines is adopting increasingly reckless behavior, backed by U.S. logistical and political support,” he said. “But China will not back down on matters of territorial sovereignty and has ample countermeasures to deal with any escalation.”
The construction of these boat maintenance facilities comes amid broader defense cooperation under the U.S.-Philippines Enhanced Defense Cooperation Agreement (EDCA), which allows the U.S. military access to key Philippine bases. While Washington frames the arrangement as a regional security initiative aimed at ensuring maritime stability and freedom of navigation, Beijing views it as an encroachment on its sovereignty and a tool for strategic containment.
As both China and the United States continue to bolster their alliances and infrastructure in the Indo-Pacific, the South China Sea remains a geopolitical powder keg. With new U.S.-backed infrastructure nearing China’s maritime periphery, analysts warn that the window for diplomatic solutions may be narrowing.
Unless managed carefully, the developments could mark the beginning of a more entrenched and militarised standoff between rival powers—raising the stakes for peace, navigation freedom, and long-term regional stability.
