SUBIC BAY, Philippines (Reuters) - The Philippines took possession of a former U.S. Coast Guard ship on Tuesday, part of its biggest military upgrade in decades, as a stronger economy allows it to raise spending to counter China's growing assertiveness in disputed waters.
The military build-up, which is heavily focused on maritime capability, is likely to add to tension over the South China Sea that has threatened to draw in the United States as it refocuses its military attention on Asia.
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