Japan's Self-Defense Forces fired a Type 88 anti-ship missile during a joint maritime exercise with US, Australian, and Philippine forces on Wednesday, hitting a decommissioned Philippine Navy ship in waters facing the disputed South China Sea.
The drill took place as Manila and Tokyo began talks on a potential defense equipment transfer, made possible by Japan's decision to scrap restrictions on military exports, said Reuters.
Discussions include the possible early transfer of Abukuma class destroyers and TC-90 aircraft to the Philippines, Japan's Defense Minister Shinjiro Koizumi said.
Philippine Defense Secretary Gilberto Teodoro and Koizumi witnessed the live missile firing on the ground, while Philippine President Ferdinand Marcos Jr. watched the exercise from military headquarters in Manila via a live video feed, the president's office said.
"The exercise showcased coordinated maritime strike operations among allied forces and highlighted the AFP's growing capability to operate alongside international partners in promoting regional security and freedom of navigation," it said in a statement.
The Philippine military said two Type 88 volleys were fired, hitting the BRP Quezon within six minutes of the launch. The strike took place about 75 km (46.6 miles) off the coast of Paoay in the northern Philippines, which faces the South China Sea.
The Philippine Department of National Defense said Japan's Type 88 missile system was "designed to defend coastal areas and deter maritime threats."
"I'm very, very proud and happy that we were able to pull this off for the first time and it will only get larger in scope with more partners," Teodoro said.
The live-fire drill was part of the annual war games held by Manila and Washington, known as "Balikatan", or "shoulder-to-shoulder".
Japan, together with Canada, Australia, France and New Zealand, are joining Balikatan as active participants for the first time, highlighting Manila's widening network of security partnerships.
On May 2, Filipino and American troops also deployed the anti-ship missile NMESIS in Batanes province, near Taiwan, as tensions simmer over the self-governed island that China views as its own territory.
More than 17,000 troops are taking part in this year's exercises, including around 1,400 from defense treaty ally Japan and 10,000 from the United States, even though Washington remains heavily engaged in the Middle East.
Beijing routinely criticizes Manila's joint military exercises with allies, saying they heighten regional tensions.