* Shanahan warns of destabilising forces in Asia
* U.S., China locked in disputes over trade, defence
* Defence chief says United States, China can cooperate
(Adds comments from Chinese military official, U.S. lawmakers)
By Idrees Ali
SINGAPORE, June 1 (Reuters) - The United States will no
longer "tiptoe" around Chinese behaviour in Asia, with stability
in the region threatened on issues ranging from the South China
Sea to Taiwan, acting U.S. Defence Secretary Patrick Shanahan
said on Saturday.
Shanahan did not directly name China when making accusations
of "actors" destabilising the region, but went on to say the
United States would not ignore Chinese behaviour, the latest in
the exchange of acerbic remarks between the world's two biggest
economies. He added, however, he was keen to foster a military
relationship with Beijing.
"Perhaps the greatest long-term threat to the vital
interests of states across this region comes from actors who
seek to undermine, rather than uphold, the rules-based
international order," Shanahan said at the annual Shangri-La
Dialogue in Singapore, Asia's biggest security gathering.
"If the trends in these behaviours continue, artificial
features in the global commons could become tollbooths,
sovereignty could become the purview of the powerful."
Shanahan's first major speech since taking over as acting
defence secretary in January came as the United States and China
remain locked in an escalating trade war and at odds over a
range of security issues in Asia.
His reference to artificial features was a swipe at islands
built by China in the disputed South China Sea, a strategic
waterway claimed almost wholly by Beijing.
"We're not going to ignore Chinese behaviour and I think in
the past people have kind of tiptoed around that," Shanahan said
later in answer to a question.
A senior Chinese military official responded to Shanahan's
comments by saying that the United States' actions on Taiwan and
the South China Sea were hardly conducive to maintaining
stability in the region. Shanahan said it was in Beijing's interests to have a
constructive relationship with the United States.
But he added: "Behaviour that erodes other nations'
sovereignty and sows distrust of China's intentions must end."
"Until it does, we stand against a myopic, narrow, and
parochial vision of the future, and we stand for the free and
open order that has benefited us all - including China."
U.S. lawmakers said Shanahan's speech was impressive.
"I was very impressed and I certainly am looking much more
positively on potentially voting for him when his confirmation
happens," Democratic Senator Tammy Duckworth told reporters.
The White House said last month that it plans to nominate
Shanahan as defence secretary, a job he has been doing in an
acting capacity since January, the longest in Pentagon history.
His nomination, if and when it comes, will have to be confirmed
by the Senate.
"The way he laid out the facts and the United States'
position in a firm way, but very upfront, impressed me
tremendously," Duckworth added.
Senator Angus King, a political independent from Maine and
on the Senate Armed Services Committee, said Shanahan had
"distinguished" himself and was hopeful the confirmation hearing
would take place within about a month.
TRADE WAR
Shanahan said that he did not see the current trade dispute
between China and the United States as a trade war, but rather
just part of trade negotiations.
An increase in Chinese tariffs on most U.S. imports on a $60
billion target list took effect as planned on Saturday, after
Washington's own tariff increases. Shanahan also became the latest senior U.S. official to call
out Chinese telecoms giant Huawei, saying in his speech that it
was too close to the Chinese government.
The United States has accused Huawei of espionage, breaching
trade sanctions against Iran and intellectual property theft.
Huawei disputes all allegations.
China's Defence Minister Wei Fenghe is due to address Asia's
marquee security summit on Sunday when he is expected to
criticise the United States over its implied support for a
democratic Taiwan.
On Friday, Shanahan held talks with Wei that both sides
called "constructive", although their teams later reverted to
type with critical comments on each other's defence strategies.
Along with the expected warnings aimed at China, Shanahan
referred to cooperation between the two countries in areas like
military-to-military exchanges, counter-piracy and joint efforts
to reduce the "extraordinary threat" posed by North Korea's
military ambitions.
"I am confident that we'll solve problems," Shanahan said.
Shanahan also called on U.S. allies to contribute more to
their own defence. Burden-sharing, from Asia to Europe, has long
been a demand of President Donald Trump's administration.
"We need you to invest in ways that take more control over
your sovereignty and your own ability to exercise sovereign
choices."