Pax Silica: Inside the Trump Administration’s Tech Strategy with Jacob Helberg
From The Dana Prize
Jacob Helberg•Undersecretary of State for Economic Affairs
Executive Summary
State Department is spearheading 'Pax Silica,' a 14-nation economic security coalition designed to build resilient and secure supply chains for AI and other critical technologies, countering over-reliance on China.
A cornerstone of this strategy is the creation of a 'forward deployed industrial base' in the Philippines, a 4,000-acre economic security zone operating under U.S.
diplomatic law to attract private investment in manufacturing and processing.
This approach emphasizes public-private partnerships, leveraging the dynamism of the American private sector as a key geopolitical advantage over China's state-led Belt and Road Initiative.
The strategy extends beyond semiconductors to address vulnerabilities across the entire technology ecosystem, including robotics, rare earth mineral processing, and other essential AI hardware components.
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Concerns Raised
Extreme concentration risk in AI, robotics, and critical mineral supply chains, with heavy dependence on China.
China's use of subsidized, state-led initiatives like the Belt and Road Initiative to gain geopolitical and economic leverage.
The significant gap between high U.S. consumption and lower domestic production, creating structural economic vulnerabilities.
Opportunities Identified
Establishing secure, allied supply chains through the Pax Silica framework and new initiatives like the Philippine economic zone.
Leveraging the U.S. private sector and legal system to create commercially viable, long-term platforms for re-industrialization.
Resolving pricing distortions in the critical minerals market to unlock private investment in non-Chinese refining and processing.
Fostering a hub-based global production model where allies can develop and contribute their unique industrial strengths.