By Shirin Bhandari | 2026-04-03

The United States and its allies are accelerating efforts to move defense production closer to potential conflict zones in the Indo-Pacific, seeking to strengthen supply chains and sustain military operations near the front lines as regional tensions intensify.

Officials from 16 countries March 18 conferred virtually on security at the second annual plenary of the US-led Partnership for Indo-Pacific Industrial Resilience (PIPIR), where they endorsed new initiatives spanning missile production, drone development and ammunition manufacturing.

In a joint statement, members said they would "reaffirm our commitment to accelerating defense industrial cooperation" and work collectively to strengthen resilience across allied defense sectors. Partners aim to promote "continued regional security, economic security, and prosperity of the Indo-Pacific," the statement added.

Industrial push

The latest package includes a US-Japan solid rocket motor production initiative, expanded work on common standards and supply chains for small military drones across Asia, and an assessment of a possible 30mm ammunition production line in the Philippines. Members backed further work on co-producing modular unmanned aerial systems and streamlining future cooperation between governments and industry.

The effort reflects a broader US strategy to reduce reliance on distant, centralized manufacturing and to enable allies to produce, repair and maintain key systems closer to potential "hot zones" in the Asia-Pacific region. Washington set up PIPIR in May 2024, Reuters reported.

Earlier progress stemmed from initiatives announced at the Shangri-La Dialogue last May, including a forward repair hub for P-8 radar systems in Australia and initial efforts to establish common standards for small unmanned aerial systems, PIPIR members said. Those earlier steps laid the groundwork for the expanded production and supply chain initiatives announced this year.

The proposal has drawn attention in the Philippines, which has island and maritime territorial disputes with China throughout the South China Sea.

Philippine officials said the proposed 30mm ammunition factory has been under discussion for months, with plans including a potential site in Subic Bay, the Daily Tribune reported.

Japan will be an anchor

Japan, meanwhile, is positioned as a key industrial anchor. The planned production of solid rocket motors -- propulsion systems used in many guided weapons -- would expand manufacturing capacity outside the United States while drawing on Japan's advanced engineering and defense-industrial capabilities. The broader agenda includes forming a forward-deployed hub in Japan for repairing F-15 and F-16 engines.

On unmanned systems, members agreed to deepen work on shared standards, batteries, small motors and broader co-production.

The emphasis reflects the growing importance of unmanned systems in modern warfare. For PIPIR, the goal is to accelerate production and strengthen supply chains across allied partners.

China denounced the proposed ammunition production line in the Philippines.

Washington and its allies should avoid bringing "bloc confrontation and conflict to the Asia Pacific," Chinese Foreign Ministry spokesperson Lin Jian said on March 26.

Beijing continues to assert sweeping claims in the South China Sea despite an international ruling rejecting them.

The partnership has expanded its membership, with Thailand and the United Kingdom joining as its 15th and 16th members, further linking Indo-Pacific and European partners in a broader defense industrial network.