The United States and Japan are looking to make a deal for Japanese shipyards to regularly overhaul and maintain U.S. Navy warships so they can stay in Asian waters ready for any potential conflict, U.S. Ambassador to Japan Rahm Emanuel said on Friday.

“China watches what ships are coming in and out. It is not like this is a secret, they know what’s happening. So therefore, they take an evaluation of your deterrence,” Emanuel told reporters at the Yokosuka naval base near Tokyo.

Unchallenged in Asian waters for decades, the U.S. Navy faces a growing Chinese navy being built in shipyards that are outpacing U.S. warship production.

China has more than 370 ships and submarines, up from the 340 ships they had in 2023, according to an annual report, opens new tab released by the Pentagon in October, making it numerically the largest navy in the world.