The United States has launched a strategic coalition named "Pax Silica" with the aim of securing the global technology supply chain, particularly concerning critical minerals and artificial intelligence (AI) infrastructure. The initiative, however, notably excludes India, despite ongoing trade negotiations between the two countries.
The Pax Silica Declaration was officially signed, marking the coalition's launch. Founding members include Singapore, Australia, Japan, South Korea, and Israel. The coalition is designed to counter China's dominance in rare earth minerals and emerging technologies, responding to Beijing's substantial investments in these sectors. The Trump administration views China's near-monopoly in rare earths as a significant threat, especially considering China's export restrictions that have been used in response to U.S. tariffs. Concerns also extend to China's heavy investments in AI and quantum computing, which could give them a competitive edge in the 21st-century economy.
The Pax Silica Declaration establishes a framework for collaboration in research and development, manufacturing partnerships, and infrastructure projects to rival China's Belt and Road Initiative (BRI). Since 2013, the BRI has mobilized $1.308 trillion in cumulative engagement across 150 countries, with a record $121.8 billion in engagement in 2024 alone. The BRI increasingly focuses on renewable energy, critical mineral mining, and technology sectors.
The exclusion of India is noteworthy, especially as the country is actively building its own semiconductor supply chain ecosystem and possesses a significant portion of the global semiconductor chip design ecosystem. Despite this, the inaugural Pax Silica Summit included representatives from Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. These countries are home to major companies and investors that power the global AI supply chain.
The coalition's goals include cooperating on export controls, foreign investment screening, and anti-dumping measures. It aims to secure key points in the global supply chain system and counter China's Belt and Road Initiative. The initiative envisions becoming as influential in the AI age as the G7 was in the industrial age.
The initiative responds to growing demands from partners to deepen economic and technology cooperation with the United States. It acknowledges AI as a transformative force for long-term prosperity and recognizes the necessity of trustworthy systems to safeguard mutual security and prosperity. It also addresses increasing risks from coercive dependencies and emphasizes fair market practices and policy coordination to protect sensitive technologies and critical infrastructure.
Pax Silica intends to secure strategic aspects of the global technology supply chain, including software applications, frontier foundation models, information connectivity, network infrastructure, compute and semiconductors, advanced manufacturing, transportation logistics, minerals refining and processing, and energy. Member countries have committed to jointly address AI supply chain opportunities and vulnerabilities, particularly in critical minerals.
The U.S. still relies on imports for 80% of its refined rare earth products, with a significant portion historically sourced from China. The Pax Silica initiative is designed to reduce these dependencies and ensure that aligned nations can develop and deploy transformative technologies at scale.
Some analysts suggest India's exclusion could potentially attract American investments into the country. The coming months will reveal the initial successes and challenges as the coalition works to translate its vision into tangible results, shaping the geopolitical and economic landscape of the AI era.
