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At the 2025 Shangri-La Dialogue on May 31, U.S. Secretary of Defense Pete Hegseth delivered his first public address outlining the Trump 2.0 administration’s Indo-Pacific strategy. His remarks signaled a focus on the South China Sea (SCS), with several key elements indicating deeper U.S. engagement in the region.
- “The United States is an Indo-Pacific nation - with Indo-Pacific interests - for generations to come.”
Hegseth reaffirmed America’s long-term commitment to the Indo-Pacific, emphasizing the principles of “peace through strength” and “credible deterrence”. Regarding the SCS, he strongly condemned China’s harassment of neighboring states. The speech laid out the administration’s regional policy along three dimensions:
- Regarding strategic orientation, the U.S. identified three strategic priorities in the region: (i) strengthening forward-deployed forces; (ii) supporting allies and partners in building defense capabilities; and (iii) investing in the defense industrial base.
- Regarding targeted deterrence, emphasis was placed on deterring threats along two island chains, with the First Island Chain framed as a critical line of effort to contain China.
- Regarding implementation, the Pentagon is preparing a record-breaking $1 trillion defense budget for 2026, with funding priorities including deployment of the Golden Dome missile defense system and accelerating naval shipbuilding.
In terms of regional cooperation, the United States plans to:
- Sustain regular maritime operations with Australia, Japan, and the Philippines, and expand combined operations through joint exercises such as Balikatan, Tiger Triumph, Talisman Sabre, and Cobra Gold.
- Deploy NMESIS anti-ship missile systems near the Bashi Channel and northern Luzon during Balikatan 2025 - the largest iteration of the exercise to date.
- Upgrade the U.S. Forces Japan (USFJ) into a full-fledged operational command.
- Develop defense supply chains through the Partnership for Indo-Pacific Industrial Resilience (PIPIR) initiative, including P-8 aircraft repair support in Australia and co-production of autonomous systems with India under the U.S.-India Autonomous Systems Industry Alliance (ASIA).
- Expand logistics sharing through the Indo-Pacific Logistics Network under the Quad framework.
Hegseth also called on Asian nations to follow Europe's example by increasing defense spending and sharing greater responsibility alongside the United States.
- “Peace through strength” or the start of a new spiral of tensions?
While echoing many elements of previous administrations, the Trump 2.0 strategy places greater expectations on regional allies and partners, not only in terms of defense spending but also in reducing hedging behaviors vis-à-vis China. The U.S. commitment extends beyond military presence to include industrial, logistical, and operational coordination for long-term deterrence against China.
Notably, the strategy reveals a clearer embrace of a denial strategy, seeking to prevent or neutralize the risks of war with China by shaping the operational environment in advance.
In response, on June 1, China’s Ministry of Foreign Affairs condemned Hegseth’s remarks as “smearing” China and “promoting a Cold War mentality”, accusing the U.S. of turning the South China Sea into a “powder keg”.
Given China’s sharp reaction and lingering uncertainties surrounding Trump 2.0, the question remains: Is the region ready to welcome this approach?
