Before Tsang's announcement last week, Subic Bay in the Philippines said it still believed it was in the running.

CNN: DONALD AND MICKEY

After the Soviets drew down their forces at Vietnam's Cam Ranh Bay naval base in 1984 and the U.S. left the Clark and Subic Bay bases in the Philippines in 1991, the PLA occupied nearby islands in the South China Sea.

WSJ: Review & Outlook: China's Territorial Ambition

"Some investors are coming here, instead of to Malaysia or Indonesia, because this is the only country whose change in political leadership is predictable, " argues Felicito Payumo, chairman of the Philippines' Subic Bay Metropolitan Authority.

FORBES: The Ronald Reagan of the Pacific

Twelve months ago, leaders from the 18 nations that comprise the Asia-Pacific Economic Cooperation forum gathered in the Philippines' sunny Subic Bay for their annual meeting.

CNN: APEC Shortens Its Horizon

Their enmity dates back to 1991, when Mr Gordon refused to let Mr Estrada into Subic Bay to film a movie critical of American bases in the Philippines.

ECONOMIST: The Philippines

Had American warships still been berthed at Subic Bay, China would not have dared to press its territorial claims so close to the Philippines' shores.

ECONOMIST: China and the Philippines