US and Japan agree on a Japanese missile production facility as Hegseth proposes a defence framework at ASEAN talks in Cebu

The United States and Japan agreed to establish a Japanese facility for joint missile production^1,4. The missiles are essential armaments for the F-35 Lightning II fighter jets operated by the US⁵. The agreement came as ASEAN-plus defence ministers gathered in the Philippines^1,8.

At the ASEAN-US Defence Ministers’ meeting in Cebu, US Defense Secretary Pete Hegseth proposed a new defence cooperation framework focused on maritime issues⁷. He proposed the framework on Wednesday to guide defence cooperation between the US and ASEAN members⁶.

Hegseth described the US approach to the ASEAN defence chiefs as ‘strong, quiet and clear’². ‘Strong enough to deter coercion,’ he said². He also said the US was committed to defend its interests and partners⁶.

Why it matters to investors

The agreement places joint US-Japanese missile production in a facility in Japan^1,3. It links the two allies’ weapons supply chains more closely, with Japan hosting production of missiles used on the F-35^4,5.

The backdrop is the South China Sea. Beijing claims the busy waterway, a key global trade route, virtually in its entirety³. The Philippines, Vietnam, Malaysia and Brunei, all ASEAN member states, along with Taiwan, also have overlapping claims⁴.

Allies used the meeting to set out positions. Ranking defence officials of the Philippines and Japan said on Wednesday that they oppose any attempt to change the status quo in the South China Sea through force⁹. Hegseth’s framework and the missile agreement were both presented at the same gathering^1,7, where the ASEAN defence chiefs heard him describe a US approach strong enough to deter coercion².

What to watch

Philippines-China tensions resurfaced at the close of the gathering¹⁰. Relations between Beijing and Manila have soured amid repeated confrontations in the disputed waters and, more recently, Chinese sanctions¹⁰. The two have competing territorial claims there⁸.

The next markers are the detail of the maritime framework Hegseth proposed^6,7 and the timetable for the Japanese missile facility, which the excerpts available do not give^1,2.

A third is how China responds to both moves, given its claim to almost the whole of the South China Sea³ and its strained relations with Manila^8,10. Japan’s role is a fourth marker: alongside the missile deal, its defence officials joined the Philippines in opposing any change to the status quo through force^1,9.