# US Tells Asian Allies to Spend 3.5 Percent of Output on Defense

At the Shangri-La Dialogue in Singapore, Defense Secretary Pete Hegseth said the era of subsidizing wealthy nations is over and pressed partners to meet a higher spending target in response to China's military buildup.

- Published: 2026-05-31T15:57:43.890Z
- Canonical: https://polylog.news/2026-05-31/us-tells-asian-allies-to-spend-3-5-percent-of-output-on-defe
- Publisher: Polylog (Global desk)
- Section: geopolitics
- Sources: [South China Morning Post](https://www.scmp.com/week-asia/politics/article/3355475/shangri-la-dialogue-can-asia-do-less-shangri-la-more-ships-more-subs?utm_source=rss_feed), [Al Jazeera](https://www.aljazeera.com/news/2026/5/30/what-hegseths-comments-at-shangri-la-dialogue-say-about-us-foreign-policy), [NPR](https://www.npr.org/2026/05/30/nx-s1-5837615/hegseth-shangri-la-security-summit)

The Shangri-La Dialogue, Asia's main annual security forum, ended in Singapore with two issues dominating the agenda, defense budgets and how firmly each country will commit to regional security, the [South China Morning Post reported](https://www.scmp.com/week-asia/politics/article/3355475/shangri-la-dialogue-can-asia-do-less-shangri-la-more-ships-more-subs?utm_source=rss_feed).

United States Defense Secretary Pete Hegseth set the priorities, calling on allies to raise military spending to 3.5 percent of gross domestic product and declaring that ["the era of the United States subsidizing the defense of wealthy nations is over."](https://www.npr.org/2026/05/30/nx-s1-5837615/hegseth-shangri-la-security-summit) He praised South Korea's pledge to reach that level, the Philippines for a 12 percent increase, and Japan and Australia for deepening cooperation, while warning that allies who "free-ride" will face a different relationship with Washington.

Al Jazeera noted that Hegseth's framing fits a broader US position that pairs demands for higher allied spending with [a more transactional view of alliances](https://www.aljazeera.com/news/2026/5/30/what-hegseths-comments-at-shangri-la-dialogue-say-about-us-foreign-policy). He justified the push by pointing to what he called China's historic military buildup and "rightful alarm" across the Asia-Pacific.

The message comes as Asian rearmament is already accelerating, with Japan moving to export missiles and neighbors expanding their fleets. Sustained increases on this scale reshape national budgets and order volumes for defense manufacturers across the region.

## What this means

A coordinated rise in Asian defense spending is a multiyear fiscal and industrial shift, not a single event. It expands demand for shipbuilders, missile makers and electronics suppliers, while widening deficits in economies that adopt the higher target. It also signals that Washington is shifting cost onto allies as it manages competition with China.

## What to watch

- Which governments formally adopt the 3.5 percent target and over what timeline
- Order flow and backlogs at major Asian and US defense contractors
- China's response to the spending push and to US alliance demands