Blast from the past: US ammo hub for Philippines sparks China retaliation fears

A proposal to build a US ammunition manufacturing and storage hub in Subic Bay – the site of a former American naval base in the northern Philippines – is raising fears of strategic entrapment, local economic disruption and Chinese retaliation, despite tentative backing from Manila’s defence chief.

Experts said while the move could help plug logistics gaps in the Indo-Pacific and deepen alliance coordination, it might also undermine the Philippines’ policy of strategic ambiguity and reignite long-held fears about military dependence.

The plan emerged in a report released on June 24 by the US House Committee on Appropriations’ defence subcommittee, which noted the lack of a munitions hub in the region and suggested setting up one at the former Subic Bay base.

“The committee is concerned with the lack of a forward-staged ammunition manufacturing facility in the Indo-Pacific,” the report said. “Therefore, the committee directs the Department of Defence to assess … the feasibility of establishing a joint ammunition manufacturing and storage facility at United States Naval Base Subic Bay.”

Although no formal proposal has been made, Philippine Defence Secretary Gilberto Teodoro Jnr welcomed the idea, citing potential economic and strategic benefits. “Any production entity which would be of benefit to the Philippines, not only in terms of our resilience, but improving, giving employment and other technological transfers, that might be encouraged,” he said on Monday.