Undersecretary of State Jacob Helberg on Tuesday sharply criticized the Philippines’ rejection of a U.S. Proposal to place a disputed 1,260-hectare zone in the South China Sea under joint American jurisdiction, calling the decision a “missed opportunity” that risks deepening regional tensions over territorial claims.
The remarks came days after Philippine officials—including President Ferdinand Marcos Jr.—publicly dismissed the proposal, which had been floated as part of a broader effort to strengthen bilateral security cooperation amid escalating Chinese military activity in the area. According to a senior U.S. Official briefed on the matter, the Philippines’ refusal to engage on the jurisdictional question has left Washington scrambling to salvage alternative mechanisms for joint patrols and infrastructure access in the Spratly Islands, where Manila maintains control over several features.
The 1,260-hectare area in question lies near the Philippine-occupied Thitu Island (Pag-asa), a strategic outpost in the Spratlys that Beijing has long contested. The U.S. Proposal, first reported by The Wall Street Journal and later acknowledged by a U.S. Embassy spokesperson, sought to formalize American administrative oversight of the zone—including potential military logistics hubs—as part of a broader push to counter China’s assertive island-building campaign. However, Philippine officials, citing sovereignty concerns, rejected the idea outright, with Foreign Secretary Enrique Manalo stating in a closed-door briefing that “no foreign power will dictate how we manage our territory.”
The U.S. State Department’s response, delivered by Helberg during a press gaggle on Tuesday, marked the first direct public pushback from Washington against Manila’s stance. “When a partner declines to work with you on shared security concerns, that’s a choice with consequences,” Helberg said, adding that the U.S. Would now explore “other avenues” to ensure stability in the region. The comment suggested a shift in tone from previous assurances that the alliance remained “ironclad,” signaling potential friction ahead of next month’s scheduled bilateral security talks.
Behind the scenes, American officials have privately pressed Philippine counterparts to reconsider, framing the jurisdictional offer as a pragmatic compromise rather than a concession of sovereignty. A U.S. Defense official, speaking on condition of anonymity, noted that the proposal had been structured to avoid triggering Article V of the Philippines-U.S. Mutual Defense Treaty—under which Washington is obligated to respond to armed attacks on Philippine forces or facilities—but Manila’s rejection has complicated efforts to expand joint military exercises in the area. “The Philippines has a history of being very sensitive about anything that could be perceived as encroachment,” the official said. “But this wasn’t about encroachment—it was about mutual defense.”
The timing of the dispute is particularly fraught. Chinese coast guard vessels have intensified patrols near Thitu Island in recent weeks, including a July incident where a Philippine resupply mission was blocked by armed Chinese ships—a violation of Manila’s exclusive economic zone that prompted rare public condemnation from the U.S. State Department. Meanwhile, the Philippines has accelerated its own military buildup in the Spratlys, including the deployment of additional troops and the construction of a new deep-water port at Thitu, funded in part by a $200 million U.S. Aid package announced last year.
Yet despite these developments, Philippine officials have refused to engage in substantive discussions about the U.S. Proposal, with presidential spokesman Harold Cabaton dismissing it as “not on the table.” The stance has left U.S. Strategists questioning whether Manila’s reluctance stems from genuine sovereignty concerns or a calculation that China’s military posturing in the region could be mitigated through other means—such as the Philippines’ own expanding defense ties with Japan, and Australia.
For now, the impasse has forced both sides to focus on lower-stakes cooperation. A U.S. Navy destroyer is scheduled to conduct a freedom of navigation operation near the Spratlys next week, a routine but symbolic move designed to assert challenge to excessive maritime claims. Meanwhile, Philippine Defense Secretary Gilbert Teodoro has signaled openness to expanding joint disaster response drills—a softer alternative to the jurisdictional talks that have collapsed.
The next critical test will come at the U.S.-Philippines Security Dialogue in Manila on August 15, where officials are expected to assess whether the alliance can maintain momentum despite the jurisdictional rift. With China’s military modernization showing no signs of slowing, the failure to resolve even limited jurisdictional questions threatens to leave both capitals with fewer tools to counter Beijing’s expanding influence in one of the world’s most contested maritime regions.
