Captain James Fanell (US Navy, retired), co-host Gordon Chang: Fanell warns that China is nearing completion of a military installation on Triton Island in the Paracels, expanding its "ring of control" in the South China Sea. He cautions that China may soon fortify Scarborough Shoal, threatening to block the northern South China Sea and degrade U.S. naval operations. In response to this rising coercion, the Philippines is boosting its 2027 defense budget by 6.3%, allocating $800 million for modernization with a heavy focus on intelligence, surveillance, and reconnaissance drones. Fanell urges more assertive naval cooperation to deter further Chinese expansion. (5)