US Defence Secretary Pete Hegseth on 31 May called on Indo-Pacific allies to sharply raise defence spending and expand military capabilities, framing stronger deterrence as the only credible answer to China's growing regional footprint. Speaking at the Shangri-La Dialogue in Singapore, Hegseth said the era of Washington subsidising the defence of prosperous allies is drawing to a close.

The Spending Demand

Hegseth urged partner nations to raise defence budgets to roughly 3.5 per cent of GDP, while noting that the United States itself is investing nearly $1.5 trillion in military capabilities. He argued that the Indo-Pacific needs tangible assets — ships, submarines, and integrated defence systems — rather than further rounds of security dialogue. The message echoed President Donald Trump's longstanding position that wealthy allies must shoulder a greater share of collective defence costs.

China, Communication, and Deterrence

Despite his hawkish framing on Beijing's military build-up, Hegseth acknowledged that US-China military-to-military communication has improved in recent months. He said these channels are helping manage tensions, even as the broader bilateral relationship remains complex. Chinese delegate Zhou Bo welcomed what he described as a more measured tone in Hegseth's remarks compared with previous years, suggesting that sustained diplomatic engagement had kept communication channels open and reduced the risk of miscalculation.

Taiwan, South Korea OPCON, and the Middle East

On Taiwan, Hegseth declined to comment on reports of a potential new US arms package for the island, reiterating only that Washington's policy toward Taipei remains unchanged and that arms-sale decisions rest with President Trump. On South Korea, he called for finding a 'balance' in the transfer of wartime operational control (OPCON) that honours the longstanding role of US forces on the Korean Peninsula. He described Seoul's desire to retake OPCON 'more quickly' as a 'breath of fresh air,' even as differing views between the two capitals over timing reportedly persist. On the Middle East, Hegseth said the US remains prepared to resume military strikes on Iran if diplomatic efforts fail, while asserting Washington's capacity to manage both Asian and Middle Eastern security simultaneously.

Allies in Focus

Hegseth specifically praised Japan for deepening defence cooperation and enhancing military readiness alongside US forces, holding Tokyo up as a model for the kind of burden-sharing Washington expects from regional partners. He stressed that building a robust network of capable allies is essential to preserving the balance of power across the Indo-Pacific and demonstrating what he called 'strength and disciplined leadership.'

What Comes Next

The Shangri-La Dialogue remarks set the tone for upcoming bilateral defence consultations across the region. Whether Indo-Pacific partners — many of whom balance economic ties with China against security dependence on the US — move to meet Washington's 3.5% GDP benchmark will be the real measure of Hegseth's push. The OPCON transition timeline with South Korea and the status of a potential Taiwan arms package are two near-term flashpoints to watch.