Overview

• Pete Hegseth told the Shangri-La Dialogue that China is “rehearsing for the real deal” and could launch force against Taiwan imminently.
• He called on Indo-Pacific partners to raise defense spending to as much as 5% of GDP, citing recent NATO budget hikes as a model for shared security.
• The Pentagon chief vowed to strengthen the US regional posture through expanded joint exercises, new repair hubs, live-fire tests and increased arms sales to Taiwan.
• Beijing sent a lower-level delegation instead of Defense Minister Dong Jun, marking his first absence from the summit since 2019.
• Australia’s Defence Minister Richard Marles said Canberra is open to discussions on higher military budgets beyond its projected 2.33% of GDP.