TAIPEI (Taiwan News) — The US-China Economic and Security Review Commission proposed that Taiwan could help fund upgrades at Philippine military bases used by US forces to strengthen deterrence against China, Nikkei Asia reported on Thursday.
The recommendation points to Enhanced Defense Cooperation Agreement (EDCA) sites on Luzon and Palawan where the US is improving runways, hangars, and warehouses near Taiwan. The panel said Taipei would benefit directly from stronger American capabilities in the region.
The commission proposed using the Foreign Military Sales program to channel Taiwan’s support by treating upgrades as non-weapon services. Under the plan, the Defense Security Cooperation Agency would manage contracts while the Philippines receives the infrastructure improvements.
Commission Vice Chair Randall Schriver said the investments make strategic sense because EDCA bases are tied to Washington’s ability to defend Taiwan in a crisis. He added that the program would give Taiwan political cover by avoiding any impression of directly funding Philippine facilities.
Schriver also said the arrangement could raise Taiwan’s overall defense spending and help it meet its GDP-based targets. The EDCA proposal was one of 28 recommendations aimed at strengthening the US posture across the Indo-Pacific.
The report said similar funding models could support upgrades in Japan’s southwestern islands and Pacific nations that recognize Taiwan. However, analysts warned Beijing would respond sharply, with Council on Foreign Relations scholar Sheila A. Smith saying China would “stomp heavily” on any multilateral action involving Taiwan.
Smith said the question is how much political pressure regional partners such as Japan, the Philippines, and Taiwan are prepared to absorb. The panel urged Congress to expand support for Manila’s coast guard and security agencies to counter China’s behavior in the South China Sea.
The commission also called for deeper Philippine engagement with the Quad and a new “Quad Plus” dialogue on countering Chinese gray-zone activity. It further suggested Philippine shipyards could support US Navy maintenance and expand defense-industrial cooperation.
Commissioner Hal Brands said the Philippines provides “crucial strategic real estate” for US planning around Taiwan and the South China Sea. The 2025 US defense budget includes NT$4 billion (US$128 million) for 36 projects at EDCA sites, including airfield upgrades, fuel storage, and logistics facilities.
