Updated
Updated · CNBC · May 31
Defense Leaders Press Higher Spending at Shangri-La Dialogue as Asia-Pacific Tensions Deepen
Updated
Updated · CNBC · May 31

Defense Leaders Press Higher Spending at Shangri-La Dialogue as Asia-Pacific Tensions Deepen

5 articles · Updated · CNBC · May 31
  • Singapore’s Shangri-La Dialogue closed with defense leaders converging on one message: countries need to spend more, build deterrence and work through broader security partnerships.
  • U.S. Defense Secretary Pete Hegseth warned allies that those who do not carry their share of collective defense would face a shift in U.S. ties, while the Philippines and Netherlands also argued for stronger military investment.
  • China and Taiwan-related tensions ran through the summit, with Hegseth insisting Beijing respect the U.S. role in the Pacific, a former Chinese vice foreign minister defending eventual reunification, and Manila accusing China of expansionism.
  • Regional officials still framed multilateralism as essential—Singapore, Canada, Australia and Vietnam stressed reassurance, rules and cooperation, while Malaysia and Chinese speakers called for fairer global security governance.
  • The mix of sharper deterrence language and appeals for dialogue underscored an Indo-Pacific security order that is becoming more heavily armed, more contested and still dependent on fragile multilateral forums.
As China offers a new global order, can Indo-Pacific nations avoid choosing a side in the escalating U.S. rivalry?
Is an informal 'alliance of capabilities' the only way for nations to deter China without formal U.S. treaties?
With competing U.S. and Chinese visions for global rules, who will ultimately control the future of technology and trade?

Asia-Pacific at a Crossroads: U.S. Calls for 3.5% Defense Spending and the New Regional Security Order at the 2026 Shangri-La Dialogue

Overview

The 2026 Shangri-La Dialogue in Singapore brought together defense leaders from around the world to address rising regional tensions and global security challenges. U.S. Secretary of War Pete Hegseth called on Asia-Pacific allies to raise their defense spending to at least 3.5% of GDP, highlighting the urgency of stronger military commitments. This demand was shaped by lessons from the ongoing conflict in Ukraine, where new methods of warfare, especially asymmetric tactics, have influenced defense strategies globally. Countries like the Philippines are now studying Ukraine’s approach and increasing their own defense budgets, reflecting a shift in regional security thinking.

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