Defense Secretary Pete Hegseth toned down previous rhetoric calling China a threat in a visit to Singapore on Saturday, but told allies the region “has profound implications for U.S. security and prosperity.”

As the U.S. has done for decades, Hegseth tried to straddle the line between not angering Chinese leaders and still not ostracizing Taiwan. Unlike last year, Hegseth said the U.S. respects China’s ambitions in the region.

“I think our message today was very much in sync with precisely where the president wants to go, which is we’re going to be strong, but we can speak softly while carrying that big stick and be very clear about the fact that there are places where we can work together with China,” Hegseth told reporters after his remarks from the stage. “We respect their ambitions, we know that they have a significant military buildup that comes with considerations we have to take as a sovereign nation to ensure that we’re prepared for any possible contingency, and at the same time, our position hasn’t changed on Taiwan.”

Speaking to a group of world leaders, diplomats and top security officials at the Shangri-La defense conference in Singapore, Hegseth said Washington’s priority was to “achieve a lasting and favorable balance of power in the Pacific.”

It was his second time addressing the forum, hosted by the International Institute for Strategic Studies. Last year, he angered China by referring directly to the country as a “threat” to Taiwan, which China still sees as part of the mainland country while Taiwan believes they are independent.

“We are not going to sugarcoat it — the threat China poses is real,” Hegseth said last year. “And it could be imminent.”

Those comments generated a rebuttal from a Chinese military official, who called some of Hegseth’s claims “completely fabricated.”

This year, however, the meeting comes only about two weeks after U.S. President Donald Trump visited Chinese leader Xi Jinping in Beijing, following which Trump called Xi a “great leader” and said they were going to have a “fantastic future together.”

Hegseth says China won’t be allowed to dominate the region

Hegseth, who was with Trump in Beijing, said the two leaders had agreed China and the U.S. should “build a constructive relationship of strategic stability, based on fairness and reciprocity, reaffirming that while our nations will vigorously protect our respective interests, we can secure practical, mutually beneficial agreements where our interests align.”

However, he said it was still an American priority to ensure China is not allowed to dominate the Indo-Pacific.

“There is rightful alarm regarding China’s historic military buildup and the expansion of its military activities in the region and beyond,” he said.

“We share a clear-eyed assessment of that security environment and a mutual understanding that a Pacific dominated by any hegemon would unravel the regional balance of power and undermine the equilibrium we all seek to preserve.”

Later in the day, Chinese Maj. Gen. Meng Xiangqing praised Hegseth’s remarks about the meeting between Xi and Trump, saying the consensus the leaders reached “should provide strategic guidance for China-U.S. relations over the next three years and beyond.”

“During his meeting with President Trump, President Xi Jinping made it clear that such constructive strategic stability should be a positive form of stability centered on cooperation, a healthy form of stability in which competition remains within reasonable bounds, a normal state of stability in which differences are managed and kept under control, and a lasting form of stability that offers the prospect of peace,” he said.

U.S. Sen. Tammy Duckworth, part of a congressional delegation to the conference, accused the Trump administration of “cozying up” to China.

“I worry that this administration is being distracted into wars that they’ve started in other parts of the world at the expense of our commitment here in the Indo-Pacific,” the Illinois Democrat told reporters on the sidelines.

“I am concerned that it seems like our president is entering into, you know, policies where he’s doing what Beijing wants him to do,” she added.

After the meetings between Xi and Trump, the American president raised questions about Washington’s willingness to defend Taiwan, calling a new $14 billion arms package that he has yet to greenlight “a very good negotiating chip for us” with China.

China claims the democratic self-governing island as its own, and Xi has not ruled out using force to take it. The U.S. is required by law to help provide Taiwan with the means to defend itself, though follows a policy of “strategic ambiguity” on whether it would intervene militarily if China were to attack the island.

Hegseth told the forum that there was “no change in our status” toward Taiwan, but would not comment on the arms deal.

“Any decision about future Taiwan arms sales, as the president said, will rest with him,” he said.

US praises countries that spent more on defense

He underscored the Trump administration’s insistence that allies increase defense spending, saying “we need partners, not protectorates.”

He lauded several countries in Asia for their efforts, while reiterating criticism of European allies, without naming names, who he suggested got “distracted by empty globalist rhetoric about the rules-based international order.”

“Our partners in Asia have long understood that the bedrock of a durable partnership is not based on idealistic values but on the concrete alignment of national interests,” he said.

“When our interests diverge, we adjust pragmatically, without the drama or the moralizing,” he added. “I think Western Europe might take note — this is a mindset we fully embrace.”

Hegseth did not mention either the war in Ukraine or Iran war in his speech. When asked about Iran, he only said that Trump had assured him that when negotiations with Tehran had concluded, “any deal will be a good deal.”

Australian Defense Minister Richard Marles, whose country was among those Hegseth praised for increased military spending, said that while the international rules-based order is not perfect, the “task before us, all of us, including the great powers, is the renovation of that order, not its dismemberment.”

“When the rules apply, smaller states have agency,” Marles said in a speech that followed Hegseth’s. “When the rules yield to power, sovereignty becomes, as others have put it, the purview of the powerful, and no state in this room today, whatever its size, is well served by that outcome.”

UK, US and Australia announce new undersea drone initiative

At an event held outside the conference, Hegseth, Marles and British Defense Secretary John Healey announced a new initiative in their AUKUS partnership, whose primary focus has been the development and construction of nuclear-powered submarines.

Under the so-called second pillar of AUKUS, the three said they would together invest in the development of improved capabilities for underwater drones.

“Together we produce a range of cutting-edge sensors or weapons systems for undersea drones,” Healey said, adding it will help detect threats including to underwater cables and pipelines.