US Secretary of Defense Pete Hegseth has warned of China posing an "imminent" threat to Taiwan, while urging Asian countries to boost defence spending and work with the US to deter war.

US Defense Secretary Pete Hegseth on Saturday delivered a dire warning to the Asia-Pacific region and the world: China’s designs on Taiwan pose a threat to global peace and stability that requires “our allies and partners do their part on defense.

Restrictions on exports of rare-earth magnets from China have contributed to escalating tensions, according to the White House.

A temporary deal spurred optimism that the U.S. and China could reach a trade agreement before their trade war caused too much economic damage. On Friday, that outlook didn't seem so bright. President Donald Trump posted on the social media website Truth Social that China has "totally violated its agreement with us.