A Rocket Deal That Will Make Waves in the South China Sea

Stratfor Worldview

Security, Asia

Here is what you need to know.

What Happened

The waters of the South China Sea could soon be heating up once more. This week, the South China Morning Post reported that the United States and the Philippines discussed the placement of an upgraded High-Mobility Artillery Rocket System (HIMARS) in the contested body of water to defend against China's militarization of its artificial islands in the area. The report, however, said Washington and Manila failed to reach a deal because the Philippines cannot afford the "expensive" HIMARS.

The report comes amid continuing uncertainty about the countries' alliance under Philippine President Rodrigo Duterte's administration, as well as questions over whether Manila wishes to review the nations' 70-year-old Mutual Defense Treaty. Recently, the pair's defense chiefs reaffirmed their "enduring alliance" and agreed to increase the interoperability of their forces; at the same time, the United States also pledged to continue its support for the Philippine armed forces.

Earlier this week, the two countries also kicked off the Balikatan military exercises, which have featured new U.S. fighter jets, as well as greater participation from the Australian military and observers from Southeast Asia.

Why It Matters