* 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.