Defense spending, China in Asia and lessons from Ukraine: Takeaways from the 2026 IISS Shangri-La Dialogue The IISS Shangri-La Dialogue highlighted a global trend towards increased defense spending, with countries like Japan and the Netherlands planning significant allocations. China’s participation was notably subdued, with a lower-level delegation, drawing criticism and comments on missed dialogue opportunities. The conflict in Ukraine continues to heavily influence defense strategies, emphasizing the importance of asymmetric warfare and reshaping international security architectures.

• Nations are increasingly accepting the need to increase defense spending, with Japan, the Philippines, and the Netherlands planning allocations.
• US Secretary of War Pete Hegseth advocated for countries to spend at least 3.5% of their GDP on defense.
• China sent a lower-level delegation for the second consecutive year, with its representatives defending their positions on territorial integrity and military buildup.
• Discussions included Japan’s defense spending hikes and China’s perceived lack of transparency, alongside concerns about Chinese expansionism.
• Lessons from Ukraine, particularly concerning asymmetric warfare, are significantly influencing global defense strategies and resource allocation.