Australia has reaffirmed its commitment to independently determine its defence policy in response to escalating calls from the United States for allies in the Indo-Pacific to bolster their military spending in the face of perceived threats from China.

At the Shangri-La Dialogue in Singapore, US Defence Secretary Pete Hegseth urged regional partners to share the burden of deterrence by enhancing their own defence capabilities, stating, 'There's no reason to sugar coat it.

The threat China poses is real, and it could be imminent.'

In reaction, Australian Prime Minister Anthony Albanese highlighted significant investments already made by his government, announcing an additional $10 billion allocated for defence over the next four years.

'We'll determine our defence policy, and we've invested just across (the next four years) an additional $10 billion in defence,' Albanese stated during an address to reporters in Hobart.

He indicated that defence spending in Australia is projected to rise to approximately 2.3% of GDP within the decade, an increase from the current level of around 2%.

During discussions on the margins of the dialogue, Hegseth proposed that Australia should aim to elevate its defence spending to 3.5% of its GDP. However, Defence Minister Richard Marles later clarified that specific percentages were not discussed.

Marles emphasized that Australia is already embarking on 'the single biggest peacetime increase in defence expenditure in Australia's history,' signalling the government's ongoing commitment to enhancing military capabilities and regional relationships.

Hegseth also pointed to China's military actions around Taiwan, suggesting they may be indicative of preparations for a potential invasion.

In response, Albanese asserted that Australia's position on Taiwan is clear, characterized by bipartisan support for maintaining the status quo.

China maintains that Taiwan is a part of its territory and has condemned the US as a destabilizing force in the region.

The Chinese Foreign Ministry reacted to Hegseth's comments, accusing him of fabricating threats and failing to acknowledge calls for peace by regional nations.

The ministry characterized his statements as 'deplorable' and part of a Cold War mentality aimed at fostering division.

It emphasized that US military deployments and maneuvers in the South China Sea contribute to regional tensions.

As discussions surrounding defence capabilities continue, both Australia and the United States navigate a complex geopolitical landscape marked by varying perceptions of threat and security in the Indo-Pacific.