Pentagon chief tells Asian allies: Raise defence spending to 5% of GDP like Europe

SINGAPORE – The US wants Asian countries to increase their defence spending to match levels that Washington expects of European allies, saying that they bear the brunt of the “threat” of China and North Korea in their backyards.

US Secretary of Defence Pete Hegseth reassured allies that the Indo-Pacific remains the US “priority theatre” in his address on May 31 at the 22nd Shangri-La Dialogue, a leading security and defence forum focused on the Asia-Pacific.

With nations taking ownership of their own defence, the Pentagon chief said this would in turn boost the collective effort to deal with the “threat” of China’s quest for “hegemonic power in Asia”.

“It is hard to believe I can say this – but Asian allies and partners should look to countries in Europe as a newfound example. Nato members are pledging to spend 5 per cent of their GDP (gross domestic product) on defence, even Germany,” Mr Hegseth said.

“How can it make sense for countries in Europe to do that while key allies and partners in Asia spend far less in the face of a far more formidable threat from communist China, not to mention North Korea?” the former Fox News presenter added.

The US defence chief invoked comparisons between President Donald Trump’s approach towards the Indo-Pacific and Singapore’s founding prime minister Lee Kuan Yew’s famed pragmatism, “shaped by a preference for engaging on the basis of commerce and sovereignty – not war”.

“These two historic men share a willingness to challenge old ways of doing things that no longer make sense. Under President Trump’s leadership, we are applying this common sense approach here in the Indo-Pacific and throughout the world.”

Mr Hegseth was speaking to an audience of global defence leaders that did not include China’s defence minister,

who skipped the annual forum for the first time since 2019

amid escalating tensions with the US, ranging from tariffs to student visas and access to critical minerals and technology.

“We are here this morning. And somebody else isn’t,” he said, without making an overt reference to China.

“Ultimately, a strong, resolute and capable network of allies and partners is our key strategic advantage. China envies what we have together.”

Priority theatre

Mr Hegseth’s address in Singapore was also noteworthy for being possibly the first time the Trump administration has iterated its commitment to the defence of Taiwan, a self-governing territory that Beijing claims as its own, to be reunified by force if necessary.

From accusing Taiwan of stealing the US thunder on semiconductors to raising tariffs against the island, Mr Trump’s comments since he returned to office at the turn of 2025 had stoked some doubt and anxiety in Taiwan about whether the US would intervene if China attacked.

Mr Hegseth said: “Let me be clear: Any attempt by communist China to conquer Taiwan would result in devastating consequences for the Indo-Pacific and the world. We are not going to sugarcoat it. The threat China poses is real. And it could be imminent.”

The former US Army National Guard officer also noted Chinese President Xi Jinping’s reported orders for China’s military to be ready to invade Taiwan by 2027. 

“President Trump has said that communist China will not invade Taiwan on his watch,” he said. “Our goal is to prevent war. And we will do this with a strong shield of deterrence, forged together with you – America’s great allies and partners.”

Mr Hegseth also spoke at length on the “urgent” nature of China’s “threat” beyond the “everyday” harassment of Taiwan.

“In the South China Sea, communist China harasses its neighbours – many are here in this room today,” the Pentagon chief said. “We have all seen the videos and pictures of water cannons, ship-to-ship collisions, and illegal boardings at sea. They are also illegally seizing and militarising land features in the South China Sea.” 

China has been engaged in dangerous skirmishes with Philippine coast guard and navy vessels in waters in the South China Sea, where it has overlapping claims with some South-east Asian neighbours, including the Philippines, Malaysia and Vietnam.

The US is bound by treaty to defend the Philippines when the South-east Asian archipelago is under attack.

Beijing continues to

reject a 2016 ruling

by the Permanent Court of Arbitration at The Hague that its expansive claims in the crucial waterway have no basis in international law.

“These actions betray China’s fundamental lack of respect for its neighbours and challenge sovereignty, freedom of navigation, and overflight,” he said. “Any unilateral attempt in the South China Sea to change the status quo by force or coercion is unacceptable.”

How might Asian allies see this?

With China’s economic clout looming large as the world’s second-largest economy, Asia-Pacific nations find themselves having to balance their economic and security needs between Beijing and Washington.

“Economic dependence on China only deepens their malign influence and complicates our decision space during times of tension or conflict. The CCP uses economic influence to wield power,” Mr Hegseth said, referring to China’s Communist Party.

Still, the expectation for Asian allies to up their defence expenditure to 5 per cent of their respective GDP would likely require fundamental policy changes – and probably cause some consternation – among Asian countries.

“The message about increased defence spending is targeted at allies such as Japan, South Korea, Philippines and, to some extent, Thailand, calling on them to emulate what the Europeans are doing,” Dr Adam Leong, director of the Centre for Defence and International Security Studies in Malaysia, told The Straits Times.

“South Korea and Japan are already taking some steps on this, but I think they will give the Philippines more time to build up its economy. Further down the line, countries such as Singapore will have to take heed,” Dr Leong added.

While many Asian nations have increased their defence expenditure in the last decade, Japan estimates that its own outlay would hit only 2 per cent of its GDP in 2027, while South Korea spent about 2.8 per cent of its GDP in 2024. The Philippines and Thailand stood at just over 1 per cent.

“Thailand will not be too happy about this,” said Dr Jittipat Poonkham, an associate professor of international relations at Thammasat University in Bangkok. “First, despite the fact that Thailand is America’s traditional ally, the external pressure to spend more on defence is not nuanced; it’s a matter of sovereignty and strategic equilibrium.”

“There is a concern in Thailand that the military is always asking to spend more,” he added. “The US call will offer that further justification and creates an imbalance between the military and the civilian government.

“Ultimately, Thailand may not have much choice, given that it’s also trying to negotiate with the US on the tariffs. But in the longer run, this may simply accelerate its pro-China trajectory.”

While China is reportedly the world’s second-largest defence spender after the US, Beijing’s purported defence expenditure typically does not exceed 1.5 per cent of its GDP, compared with the 3.5 per cent that the US typically maintains every year.

In 2024, Singapore said it plans to cap its defence outlay at about 3 per cent of its GDP annually on average for the next decade.

Since the Trump administration

returned to office in January

, Washington has been doubling down on its demands that its allies should bear a greater responsibility for their conventional defences and cannot expect the US to bear the financial burden alone.

When Mr Hegseth first presented a similar expectation of increased defence spending to European allies at the Munich Security Conference in February, there were fears that the US could withdraw from its longstanding commitment towards Nato at a time when Russia’s invasion of Ukraine is well into a fourth year.

Nato, or the North Atlantic Treaty Organisation, is a peacetime military alliance established in 1949 to provide collective security against the threat of expansionism posed by the former Soviet Union. Nato recommends that its member states devote about 2 per cent of their GDP a year to shore up defences.

Since the conference, there has been an acknowledgement by the leaders of some of the major European economies that they have to do more. New German Chancellor Friedrich Merz pushed through a major budget reform that changed borrowing rules in Europe’s largest economy, paving the way for an increase in defence spending.

In Singapore, Mr Hegseth also sought to showcase the US’ revitalisation of its military industry.

It is unclear if this expectation of greater defence expenditure by Asian allies would lead to more purchases of the “best military equipment in the world” from the US.

But Mr Hegseth was clear about the Trump administration’s “common sense” approach towards US involvement in the Indo-Pacific.

“We are not here to pressure other countries to embrace and adopt our politics or ideology. We are not here to preach to you about climate change or cultural issues. We are not here to impose our will on you,” he said.

“We are all sovereign nations. We should all be able to choose the future we want to build. We respect you and your traditions. And we want to work with you where our shared interests align.”