China’s Nightmare: New Asia Alliance Forms

The recent defense pact between Japan and the Philippines marks a strategic countermeasure to China’s growing assertiveness in the South China Sea.

Story Highlights

Philippines and Japan sign Acquisition and Cross-Servicing Agreement (ACSA) on January 15, 2026.
The agreement allows tax-free exchange of logistical supplies for joint military exercises.
The pact strengthens defense ties amid rising tensions with China.
Japan provides 2.53 billion yen in aid for military modernization and economic projects.

New Defense Pact Solidifies Japan-Philippines Alliance

On January 15, 2026, the Philippines and Japan signed the Acquisition and Cross-Servicing Agreement (ACSA), allowing for the tax-free exchange of logistical supplies such as fuel, ammunition, food, and services. This pact is set to enhance joint military exercises, disaster response, and UN peacekeeping efforts. The agreement comes as a strategic move to counter China’s increasing assertiveness in the South China Sea, a concern shared by both nations.

The ACSA builds on the Reciprocal Access Agreement (RAA) signed in 2024, which permitted mutual troop deployments for training purposes. This new agreement focuses on logistics, ensuring sustained operations and support during joint exercises and humanitarian missions. Unlike the RAA, it requires ratification by Japan’s Diet but not by the Philippine Senate, streamlining the process and reinforcing bilateral cooperation.

Strategic Implications of the Agreement

The signing of the ACSA reflects a deepening of defense ties between Japan and the Philippines, commemorating 70 years of diplomatic relations. It aligns with the trilateral U.S.-Japan-Philippines cooperation aimed at maintaining a “free and open Indo-Pacific.” As the region faces China’s “unilateral attempts to alter the status quo,” this agreement positions the Philippines and Japan as robust partners in regional security.

Japan’s commitment to this partnership is further evidenced by the provision of 2.53 billion yen (~P930 million) in aid for military modernization and economic projects in the Philippines. This investment underlines Japan’s strategy to counter China’s regional influence while supporting the Philippines’ efforts in economic development and defense capability enhancement.

Regional Reactions and Future Prospects

The ACSA has prompted varied reactions in the region. While it strengthens the defense posture of the Philippines and Japan, it also risks escalating tensions with China. Nevertheless, the agreement is expected to fast-track joint drills, improve disaster response capabilities, and enhance interoperability between the Armed Forces of the Philippines and the Japan Self-Defense Forces.

Japan, Philippines Sign Defense Pacts Amid Surging China Tensions https://t.co/smkAzCoHIS

— AVSEC Pro (@avsec_pro) January 15, 2026

In the long term, the ACSA could lead to an institutionalized “quasi-alliance” with strategic, intelligence, and technological benefits for both nations. This development is closely monitored by regional states, who see it as a significant step in maintaining balance and deterrence in the Indo-Pacific.