Philippines, US, Japan and Australia Agree to Expand Future Balikatan Drills Beyond South China Sea
Defence officials announced that future war games will involve the informal "Squad" alliance of the United States, Australia, Japan and the Philippines. Manila designated the Diaoyu-Senkaku Islands a security flashpoint for the first time. Tokyo offered warship transfers as the exercises concluded on Friday.
South China Morning PostThe recently concluded Balikatan joint drills have marked a shift in the Philippines’ defence strategy alongside Japan, with Tokyo offering the transfer of warships to its Southeast Asian ally. Philippine Defence Secretary Gilberto Teodoro Jnr on Wednesday said Manila now considered the uninhabited Diaoyu Islands, which Japan calls the Senkaku Islands, a security flashpoint in the East China Sea.
South China Morning Post reported that this is the first time a top Filipino official voiced serious concern over the islands claimed by Beijing and Tokyo.
Teodoro and Japanese Defence Minister Shinjiro Koizumi mentioned the Diaoyu Islands during a joint press conference on Tuesday following bilateral talks. The next day, Shinjiro Koizumi greeted troopers beside Gilberto Teodoro Jnr during the Balikatan drills in Paoay. The closing ceremonies of the operations occurred on Friday.
During those closing ceremonies, Armed Forces Chief of Staff General Romeo Brawner Jnr revealed that future war games would not be confined to waters within the South China Sea that Manila considers under its territory. Romeo Brawner Jnr said on Friday that the four parties would meet as the Squad that afternoon to discuss expanding the Balikatan exercise beyond the Philippines.
Brawner said planning for next year’s Balikatan drills will be done by the “Squad”, an informal military alliance of American, Filipino, Australian and Japanese forces.
Canberra signed a Status of Forces Agreement with Manila in 2012. Tokyo sealed a Reciprocal Access Agreement with Manila last year.
Both the Status of Forces Agreement and the Reciprocal Access Agreement enable troops to train together. South China Morning Post reported the developments as the Balikatan drills concluded. The offer of warship transfers from Tokyo forms part of the deepening defence ties.
Officials have not detailed which vessels may be involved or a timeline for any transfer.
Key Facts
Story Timeline
4 events- 2026-05-05
Japanese Defence Minister Shinjiro Koizumi and Philippine Defence Secretary Gilberto Teodoro Jnr mentioned the Diaoyu Islands during a joint press conference following bilateral talks
1 sourceSouth China Morning Post - 2026-05-06
Shinjiro Koizumi greeted troopers beside Gilberto Teodoro Jnr during the Balikatan drills in Paoay
1 sourceSouth China Morning Post - 2026-05-06
Gilberto Teodoro Jnr stated that Manila considers the Diaoyu-Senkaku Islands a security flashpoint
1 sourceSouth China Morning Post - 2026-05-08
Closing ceremonies of Balikatan operations held; General Romeo Brawner Jnr announced future drills will expand beyond Philippine waters and be planned by the Squad
1 sourceSouth China Morning Post
Potential Impact
- 01
Broadened geographic scope of annual Balikatan exercises to areas outside Manila-claimed South China Sea waters
- 02
Deeper operational integration among U.S., Philippine, Australian and Japanese forces through the Squad planning mechanism
- 03
Potential future transfer of Japanese warships to Philippine navy
Transparency Panel
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