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Three Decades After Subic Bay Withdrawal, U.S. Military Returns to the Philippines With a New Model to Check China

22 October 2026 at 15:22

When both Subic Bay Naval Base and Clark Air Base were closed as active American military facilities in the early 1990s, the Philippines was said to be the sick man of US alliances. The same Philippines now seems to have emerged as America’s pivot in the Indo-Pacific.

General Ronald Clark, Commander of US Army Pacific, made it clear in an October 18 interview with the Financial Times that the Philippines, alongside Japan and South Korea, is central to US deterrence against hostile forces (implying China) in the Indo-Pacific.

The commander of US Army Pacific, a component of Indo-Pacific Command, said he wanted to demonstrate more “exquisite” military capabilities to help “show the adversary some things that they should be concerned about.”

As part of that push, US Army Pacific has expanded its role, including by temporarily deploying weapons in the Philippines, Japan, and other parts of the region that would play a critical role in a war with China, including over Taiwan, according to General Clark.

He revealed how Typhon, a mobile missile launch system that fires SM-6 missiles at ships, and Tomahawks that could strike parts of coastal China from the Philippines, have been used in recent joint exercises with the Philippines.

The US Army has also been using the High Mobility Artillery Rocket System (HIMARS) in ways designed to send a clear message to China about the joint military capabilities of America and its allies, Clark said.

Mentioning an exercise earlier this year in which the army moved long-range precision weapons from the US to the Philippines and brought ammunition from South Korea for a live-fire mission, Gen. Clark stressed that it was important for deterrence.

“It causes them to go: ‘Hey, this is something that we have to think about,’” he said,  adding, “You can see it operate and we can do it at scale at a time and place of our choosing. So, you reveal capability in order to give your adversary pause.”

Incidentally, in an earlier conversation with the Wall Street Journal, Gen. Clark, who commands 107,000 soldiers, talked about the “tyranny of distance” that made it impossible to fight China with just air and naval power.

He argued that China’s vast geographic expanse and its anti-access/area-denial (A2/AD) capabilities make it impossible or too risky to rely solely on air and naval power.

Here, Gen. Clark argues that the Philippines’ geography is a major advantage. The country’s 7,641 islands sit near vital maritime routes, the South China Sea, and the Luzon Strait/Taiwan Strait, making it an irreplaceable staging ground for US surveillance, logistics, and coastal defense.

From Batanes in northern Luzon—100 miles from Taiwan—to Palawan facing the Spratlys in the south, the archipelago locks the two hottest flashpoints: the north controls the Taiwan Strait, and the south controls the South China Sea.

For the US  military, it is the only territory that can monitor both the Taiwan Strait and the West Philippine Sea simultaneously. The archipelago can thus complicate the movement of Chinese naval forces from their coastal waters into the wider Pacific.

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Incidentally, America is rebuilding its military presence in the Philippines after its 1992 withdrawal.

The return to Subic Bay and the expansion of US military cooperation across the Philippines mark a major strategic reversal. Washington is once again developing access to facilities that can support its operations in the western Pacific.

The US has access to nine Philippine military sites under the Enhanced Defense Cooperation Agreement (EDCA) and is investing more than $300 million to upgrade infrastructure.

However, all 9 (nine) bases are owned by the Armed Forces of the Philippines (AFP), but the US has been granted rotational access. The first 5 (five) were agreed in 2014, with 4 (four being added later in 2023 by President Marcos Jr. to deal with threats from the South China Sea.

The nine sites are being turned into A2/AD nodes that complicate any Chinese movement through the First Island Chain.

Notably, rather than building massive permanent bases, the US and the Philippines are building a flexible, distributed network that complicates targeting by China and raises the costs of a potential conflict (“deterrence by denial”).

Viewed thus, it is understandable why the US has introduced, as seen in Gen. Clark’s  FT interview,  advanced mobile-strike and missile systems such as the Typhon mid-range missile system into the Philippines, capable of reaching targets in the South China Sea and southern China.

One could further argue that Gen. Clark’s interview was not about the Philippines alone. It was about a new American way of fighting a war in the Indo-Pacific that is distributed, land-based, visible, and anchored on three democracies of  Japan, South Korea, and the Philippines. That is why he put the Philippines in the same sentence as Japan and Korea.

One can thus surmise that, in a future contingency arising from Chinese actions, Japan will provide airfields, South Korea ammunition, and the Philippines firing positions.

This aligns with the US 2026 National Defense Strategy that EurAsian Times explained earlier. The idea is to build “a strong denial defense” along the First Island Chain.

In this scheme of things, Japan is the northern anchor — with long-range missiles, US-Japan command integration, and bases. South Korea is the arsenal and logistics hub — Clark himself cited a live-fire exercise in the Philippines using ammunition brought from South Korea, showing how Korean stockpiles now sustain Philippine operations.

The Philippines is the southern anchor and now a vital Indo-Pacific center for the US. The 12th Philippines-United States Bilateral Strategic Dialogue, held in Manila on February 16, 2026, officially reaffirmed both allies’ commitment to maintaining a vigilant posture, strengthening deterrence across the First Island Chain, and keeping critical sea lanes open.

Apparently, Washington is not only institutionalizing this triangle, the US, Japan, and the Philippines, but also widening its scope by involving Australia and forming the “Squad.”

The Squad’s core focus is to counter maritime pressure and escalation in the South China Sea and East China Sea and reinforce freedom of navigation.

Accordingly, defense officials and defense chiefs from the four nations have increasingly aligned through mini-lateral dialogues, joint exercises (such as Balikatan), and security assistance packages (including transfers of Japanese warships and patrol aircraft to the Philippine Navy).

Philipines
Philippine Navy holds a Flag Raising Ceremony atop the Mavulis Island peak in Batanes-Facebook.

The developments above make it clear that the Philippines has become the centerpiece of Washington’s strategy to deter China in the Indo-Pacific. As Elbridge Colby, US Under Secretary of Defense for Policy, said this year, Manila is Washington’s “model ally”.

In his words, “When our partners are strong, deterrence is strong. And that is exactly what we have here in Manila, under the leadership of President Marcos, Secretary of National Defense Teodoro, and other key leaders. We see and respect a resolute and proud nation that is determined to strengthen its own capabilities to better defend itself and its interests. A model ally.”

The Philippines now strengthens America’s network of strategic positions running from Japan through Taiwan to the Philippines. Both are developing capabilities intended to make Chinese military operations more difficult, costly, and uncertain.

But as explained above, that is in a manner that affords more operational flexibility for America through access to ports, airfields, and other facilities that can help US forces disperse, sustain operations, and respond more quickly during a crisis, without depending on a small number of major bases.

In other words, thirty-four years after losing its sovereign bases in the Philippines in 1992, the US military has returned with comparable power, but by shifting its status from a base owner to a rotational guest.

  • Author and veteran journalist Prakash Nanda is Chairman of the Editorial Board of the EurAsian Times and has been commenting on politics, foreign policy, and strategic affairs for nearly three decades. He is a former National Fellow of the Indian Council for Historical Research and a recipient of the Seoul Peace Prize Scholarship.
  • The author can be reached at prakash.nanda (at) hotmail.com

The post Three Decades After Subic Bay Withdrawal, U.S. Military Returns to the Philippines With a New Model to Check China appeared first on EURASIAN TIMES.

Northrop Wins Fresh F-35, B-21, Sentinel & Virginia-Class Work as Backlog Hits Record $110 Billion

22 October 2026 at 11:28

Amid stiff competition from Silicon Valley-based, AI-focused defense companies, Northrop Grumman, part of the US defense market’s ‘Big Five,’ has posted better-than-expected sales and a record order backlog of US$ 109.6 billion.

Notably, at nearly $110 billion, the company’s order backlog is nearly 1.4 times its US$78 billion market cap and equals about two and a half years of sales.

Northrop Grumman’s record backlog suggests that traditional prime contractors in the US defense-industrial complex continue to win substantial new orders even as their leadership faces increasing pressure from AI-focused defense firms such as Palantir and Anduril.

For instance, Anduril, founded in 2017, is already worth US$ 90 billion, more than Northrop Grumman’s and General Dynamics’ market caps.

Meanwhile, Palantir, founded in 2003, is already worth nearly US$480 billion, more than any of the Big Five.

Northrop Grumman’s steady sales and record US$109.6 billion backlog should reassure investors that traditional defense primes can continue to thrive alongside the rapid growth of AI-focused defense companies.

The Virginia-based defense contractor reported third-quarter revenue of US$11.12 billion, up 7% from US$10.42 billion a year earlier.

Net income rose to US$1.12 billion from US$1.10 billion a year earlier.

However, the biggest surprise came in the company’s backlog order book. The company received US$16.4 billion in net contract awards during the third quarter (Q3) of 2026, pushing its net outstanding backlog to US$109.6 billion.

A year ago, at the end of Q3 2025, the company’s backlog stood at US$91.4 billion. Since then, it has received new contracts worth US$18.2 billion.

“In a complex world with the growing need for solutions that scale and perform, our customers continue to turn to Northrop Grumman,” Chair, Chief Executive and President Kathy Warden said in the earnings announcement.

According to company filings, the company’s third-quarter contracts totaled US$16.4 billion, which included US$4.6 billion for classified programs, US$2 billion for the Sentinel intercontinental ballistic missile program, and US$1.4 billion for Virginia-class submarines.

The company also received US$1.3 billion in awards related to the F-35 fighter jet and US$1 billion for the E-2 Hawkeye airborne early warning aircraft.

The Q3 contracts show strong demand for the company’s products in fighter jets, AWACS, missiles, submarines, and space programs.

Overall, Defense Systems accounted for the largest portion of the company’s backlog at US$36.5 billion, followed by Aeronautics Systems at US$26.8 billion and Space Systems at US$26.3 billion.

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Strong Demand for Northrop Grumman’s Aeronautics Systems

In Q3, Northrop Grumman reported aeronautics systems revenue of US$3.58 billion, up 14% year-on-year, and won new contracts worth over US$3 billion.

Strong aeronautics systems performance is driven by demand for the F-35 fighter jet, progress on the B-21 Raider program, maintenance work on the B-2 Spirit bomber, and work on Army helicopters such as the AH-64 Apache, CH-47 Chinook, UH-60 Black Hawk, and others.

Northrop Grumman is a principal contractor on the F-35 Lightning II program, with Lockheed Martin as the prime contractor. The company contributes roughly 25% of the aircraft and produces or supports several major structural and mission systems for all three variants – F-35A, F-35B, and F-35C.

Northrop Grumman designs and produces critical F-35 components, including the center fuselage, AN/APG-81 AESA radar, communications subsystems such as the AN/ASQ-242 Integrated Communications, Navigation, and Identification (CNI) system, and the EO/IR Distributed Aperture System.

It also leads mission systems development, pilot and maintenance training courseware, and low-observable technology support to ensure readiness and modernization across all three F-35 variants.

A F-35 picture highlighting parts manufactured by Northrop Grumman. Credit: Northrop Grumman.

The company also received new contracts worth US$1.3 billion for F-35 fighter jets.

It also won contracts worth US$1 billion for the E-2 Hawkeye airborne early warning aircraft.

Northrop Grumman is the prime contractor, Original Equipment Manufacturer (OEM), and sole designer, developer, and manufacturer of the E-2 Hawkeye family, including the current E-2D Advanced Hawkeye.

Northrop Grumman is also the prime contractor for both the B-2 Spirit and the B-21 Raider.

In 2024, Northrop won a US$7 billion award for the B-2 Spirit modernization and sustainment program, including programmed depot maintenance of the fleet, sustaining engineering, software maintenance, support equipment, logistics elements, and interim contractor support.

This B-2 Spirit modernization and sustainment work continues at Palmdale, California; Whiteman Air Force Base (AFB), Missouri; Tinker AFB, Oklahoma; Wright-Patterson AFB, Ohio; Edwards AFB, California; and Hill AFB, Utah, and is expected to be completed by May 2029.

In 2015, Northrop Grumman won the Long Range Strike Bomber (LRS-B) program, also known as the B-21 Raider.

However, the US Air Force has deliberately withheld detailed pricing for the program.

Earlier this year, the USAF and Northrop agreed to expand B-21 Raider production capacity by about 25% with roughly US$4.5 billion in government funding.

B-21 RAIDER

A 2021 Pentagon Cost Assessment and Program Evaluation (CAPE) study estimated that developing, procuring, and operating a fleet of 100 B-21 Raider aircraft could cost about US$203 billion over the next 30 years.

In September, Northrop Grumman also won a US$4.84 billion Army contract for CIRCM (Common Infrared Countermeasure) laser-based missile defense systems to protect Army helicopters, such as the AH-64 Apache, CH-47 Chinook, UH-60 Black Hawk, and others, from infrared-guided missiles. The program will run through 2035.

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Another critical program is Northrop’s role in the Sentinel missile program, a key part of the US Nuclear triad.

In the third quarter, the company won a US$2 billion contract for the Sentinel intercontinental ballistic missile program.

Northrop Grumman is the prime contractor for the LGM-35A Sentinel program, also known as the Ground Based Strategic Deterrent (GBSD).

Under the program, Northrop will design and produce a new three-stage solid-propellant ICBM with improved range, accuracy, reliability, and modularity compared with Minuteman III.

It will also construct hundreds of new or heavily modernized hardened launch silos and related facilities across multiple states, and new nuclear command-and-control networks. Sentinel will provide the US with on-alert nuclear deterrence through 2075.

Northrop Grumman is also a major supplier and Original Equipment Manufacturer (OEM) for key components on Virginia-class submarines. It won a US$1.4 billion contract in Q3 for the Virginia-class submarines.

Northrop also plays an important role in the Patriot missile defense system. It supplies the solid rocket motors, ignition safety devices, and related propulsion elements for PAC-3 MSE missiles.

Patriot interceptors are in global demand due to the two ongoing wars in Ukraine and the Middle East.

In August, the Department of War (DoW) signed framework agreements worth US$3 billion for expanding Patriot interceptor missile production.

The contract allocates nearly US$2 billion for solid rocket motors and ignition safety devices, in which Northrop will play a key role.

Northrop is also the prime contractor for the Integrated Battle Command System (IBCS), which integrates Patriot with other air- and missile-defense assets.

The company is also executing many of the USAF’s classified space-segment programs.

Many of these contracts, such as the B-21 Raider, F-35, Sentinel, and Patriot PAC-3 MSE interceptors, will run for decades, providing Northrop with a steady source of income. However, execution risk remains.

Demand for many of the company’s products, such as aircraft, missiles, and space systems, remains strong; however, investors’ key question is whether Northrop can turn its record US$109.6 billion backlog order book into improved margins and earnings.

  • Sumit Ahlawat has over a decade of experience in news media. He has worked with Press Trust of India, Times Now, Zee News, Economic Times, and Microsoft News. He holds a Master’s Degree in International Media and Modern History from The University of Sheffield, UK. 
  • He can be reached at ahlawat.sumit85 (at) gmail.com

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China’s “Military-to-Military” Proposal Fizzles as Australia & Timor-Leste Sign Defense Cooperation Framework

22 October 2026 at 06:03

Australia and East Timor (Timor-Leste), ASEAN’s eleventh member state, have signed a defense framework to boost cyber and maritime security as Canberra attempts to keep China away from its island neighbors.

Richard Marles, Australian Deputy Prime Minister and Defense Minister, said: “Australia and Timor-Leste are close neighbors, trusted partners and longstanding friends. Signing the Defense Cooperation Framework with Timor-Leste marks an important milestone in our defense relationship and provides a modern foundation for deeper cooperation in the years ahead.

Australia is proud to be Timor-Leste’s largest defense and security partner, and we remain committed to supporting Timor-Leste’s defense capability.

Together, we are strengthening our ability to work together to respond to shared security challenges, support humanitarian and disaster relief efforts, and promote a peaceful, stable and resilient region.”

He added: “Australia and Timor-Leste share a history of deep security cooperation, underpinned by decades of security cooperation and strong people-to-people ties. This package reflects the trust and friendship between our countries. As Timor-Leste takes on a greater role in our region as ASEAN’s newest member, Australia is proud to stand alongside our close neighbor and work together in support of a peaceful, stable and prosperous region.”

Foreign Minister Penny Wong said: “The Partnership Joint Declaration is driving a new era of cooperation between Australia and Timor-Leste, and these initiatives are a demonstration of our close partnership and friendship. As close neighbors and partners, Australia and Timor-Leste are working together to address shared challenges and ensure the peace, stability and prosperity of our region.”

East Timor is around 700 kilometers northwest of Australia and gained independence from Indonesia in 2002. It joined ASEAN in October 2025.

Earlier in August, China said its Defense Minister, Dong Jun, met with East Timor’s leaders in Dili and offered to “take military-to-military relations to a new level”. The visit was the first by a Chinese defense minister and coincided with commemorations for the FALINTIL-Defence Forces.

Dong met President Jose Ramos-Horta and Prime Minister Gusmao.

Marles and Gusmao signed the pact under which Australia will provide $62 million (US$43.56 million) over five years for cyber security, maritime security, infrastructure, disaster relief, and training.

More than $19 million of that is earmarked for a cyber-security uplift, including specialist advisers and protection of critical systems. Australia will also give East Timor new police vessels for maritime patrols, search and rescue, and countering transnational crime.

PM Gusmao told reporters the agreement will help East Timor fight organized crime and illegal fishing. The package expands the long-running Timor-Leste Police Development Program and supports the country’s role as ASEAN’s newest member.

East Timor’s upgraded ties with Beijing have caused regional security concerns.

Earlier in September 2023, President Jose Ramos-Horta had assured Australia and Indonesia that the country had not forged any military base arrangements with Beijing.

“We don’t have a Chinese military base of any sort. We never discuss that with China, even. The Chinese never approach us on that,” Ramos-Horta had said. He highlighted that Timor-Leste maintains normal relations with all partners while prioritizing expanded defense and maritime security cooperation with Australia.

“Indonesia and Australia…we can include Singapore and Malaysia…they are the countries closest to us…can always sleep at peace. Timor Leste will not be a nuisance, a concern in terms of security,” Ramos-Horta has confirmed to Reuters.

Western critics frequently caution against Beijing’s attempts to establish military outposts by taking over infrastructure from nations that default on loan repayments, a practice often labeled “debt trap diplomacy.”

In Sri Lanka, China took over Hambantota port after the country defaulted on loan repayments.

Canberra has grown concerned about China’s efforts to forge security ties with nearby developing nations.

In 2022, China signed a security agreement with the Solomon Islands, raising concerns that it could eventually lead to a Chinese naval presence.

Although it assured it will not host a base, Canberra remains apprehensive.

Since then, Australia has pursued agreements across the Pacific, including with Vanuatu, to reinforce its role as the primary security partner and constrain third-party arrangements with an eye on China.

Damien Kingsbury, Emeritus Professor, Deakin University, believes that “Small countries such as East Timor risk having large investors and donors such as China swamp their local economy and thus lose the capacity to make independent economic decisions.

China could end up having an outsized influence in policymaking.”

“When China looks at investing in another developing country, they do so with one eye, certainly on a viable business, but with the other eye, very much on a longer-term strategic interest.”

Kingsbury has also noted Timor-Leste’s economic pressures, including the expected depletion of its petroleum fund, as a driver of closer ties, while highlighting past caution by Dili (e.g., rejecting a Chinese radar proposal whose range exceeded Timorese waters).

Australia’s Prime Minister Anthony Albanese (R) reacts in an open-top car owned and driven by East Timor’s President Jose Ramos-Horta (L) upon his arrival in Dili, East Timor on January 28, 2026. (Photo by Valentino Dariell de Sousa / AFP)

Australia’s Key Role in East Timor

Australia played a prominent role in restoring order in East Timor after violence erupted following its 1999 independence vote. It led the International Force East Timor (INTERFET), a multinational mission that paved the way for the territory’s formal independence in 2002.

Indonesia ruled East Timor from 1975 to 1999. In August 1999, the United Nations organized a referendum. More than three-quarters of voters chose independence.

The result triggered widespread violence by pro-Indonesian militias. Homes were burned, people were killed or forced from their homes, and hundreds of thousands were displaced. Pro-Indonesian militias destroyed much of the territory’s infrastructure.

In response, the UN Security Council authorized INTERFET on 15 September 1999. Australia agreed to lead the force. Troops began arriving in Dili on 20 September under Major General Peter Cosgrove’s command.

Australia provided the largest contingent, about 5,500 personnel from the army, navy, air force and police. This was Australia’s largest military deployment since the Vietnam War. 22 countries took part, including New Zealand, Thailand, the Philippines, Singapore, the United Kingdom, the United States, among others. At its peak, the force numbered around 11,000.

INTERFET was tasked with restoring peace and security, protecting UN staff, and helping deliver humanitarian aid. The force quickly brought the situation under control. Indonesian troops withdrew, militia activity largely stopped, and by early 2000, the immediate crisis had eased.

In February 2000, INTERFET handed over to the United Nations Transitional Administration in East Timor (UNTAET), which governed the territory while it prepared for independence.

On 20 May 2002, East Timor became fully independent—the first new country of the 21st century. Australia continued to support the new nation through the follow-on UN mission (UNMISET) and by helping to train and equip the fledgling East Timorese defense force. Australian personnel remained involved in security and capacity-building for several more years.

On 13 September 2024, Prime Minister Xanana Gusmão, marking the 25th anniversary of INTERFET’s arrival, in Dili had said: “The arrival of INTERFET was a beacon of hope. The relief and joy our people felt when INTERFET arrived was immeasurable. INTERFET’s contribution to helping put an end to the violence in Timor-Leste is remembered with deep gratitude by all Timorese.”

“Our regional neighbors, including Australia, New Zealand, Thailand, and the Philippines, played leading roles in this mission, which marked a turning point in our fight for freedom.”

  • By: ET Online Desk
  • Mail us at: editor (at) eurasiantimes.com

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