Thousands of allied American and Filipino forces have opened annual combat drills that will include simulating the defense of the Philippines.
The new policy aims to revitalize a U.S. shipbuilding industry that has fallen well behind production levels of its rivals from Beijing.
Panama's president has denied claims by U.S. President Donald Trump that America is literally retaking the canal.
A Chinese military ship monitored the maneuvers off the Scarborough Shoal from a distance.
