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U.S. Tells Indo‑Pacific Allies to Raise Defence Spending to 3.5% of GDP

The demand marks a shift to conditional burden‑sharing by offering faster arms sales, co‑production and deeper intelligence links to partners that meet Washington’s spending expectations.

Overview

  • U.S. Defense Secretary Pete Hegseth, speaking Saturday at the Shangri‑La Dialogue in Singapore, urged Indo‑Pacific partners to boost defence spending to 3.5% of GDP and pledged a $1.5 trillion U.S. military investment to underpin the effort.
  • Hegseth said nations that meet U.S. expectations will be moved to the 'front of the line' for expedited arms sales, industrial co‑production and expanded intelligence sharing while those that do not should expect a clear shift in how Washington conducts business with them.
  • He struck a measured tone toward Beijing, warning of 'rightful alarm' over China’s historic military build‑up while noting that U.S.‑China military contact has increased since President Trump’s recent visit to Beijing.
  • Hegseth confirmed there is no change in U.S. policy on Taiwan and said any decision on a reported multibillion‑dollar arms package will rest with President Trump, and he acknowledged that U.S. munitions strains from the Iran conflict complicate supply timetables.
  • Regional governments are responding by deepening bilateral and multilateral defence ties, expanding arms purchases and building local defence industry links, a shift that could raise national budgets, reshape supply chains and change how the U.S. distributes military support.