US‑Led Pax Silica Push Might Isolate China — Setting the Stage for a New Tech Cold War

The United States' Pax Silica initiative launch has ignited worldwide discussions on artificial intelligence (AI), particularly because the initiative aims to bolster the silicon supply chain worldwide and foster AI innovation.

The Pax Silica is a US-led initiative formed under the Trump administration that gathers partners from eight other countries- Australia, Japan, South Korea, the United Kingdom, the Netherlands, Singapore, the United Arab Emirates, and Israel, with guest contributions from Taiwan, the European Union, Canada, and the OECD attending the inaugural Pax Silica Summit. The coalition aims to secure the silicon supply chain, a critical element in building AI applications.

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State for Economic Affairs Under Secretary Jacob Helberg told Reuters of the coalition, 'It's meant to be an operational document for a new economic security consensus.'

What is Pax Silica?

Pax Silica is described by the government in its official declaration as 'the Department of State's flagship effort on AI and supply chain security, advancing new economic security consensus among allies and trusted partners.'

The Latin term 'Pax,' from which the initiative was named, applies to modern AI computing foundations, while Silica is the compound used in computer chips to power AI. Pax Silica aims to build a more robust technology ecosystem that revolves around finding materials and manufacturing semiconductors for AI infrastructure.

Pax Silica acknowledges, 'the technological revolution in AI is accelerating, increasingly reorganising the world economy, and reshaping global supply chains. We believe that economic value and growth will flow through and across all levels of the global AI supply chain, driving historic opportunity and demand for energy, critical minerals, manufacturing, technological hardware, infrastructure, and new markets not yet invented.'

Jacob Helberg said in the official declaration, 'If the 20th century ran on oil and steel, the 21st century runs on compute and the minerals that feed it. This historic declaration hails a new economic security consensus ensuring aligned partners build the AI ecosystem of tomorrow—from energy and critical minerals to high-end manufacturing and models.'

Responding to China

According to the official spokesperson's office release, Pax Silica is 'a positive-sum partnership. It is not about isolating others—but about coordinating with partners who want to remain competitive and prosperous.'

Though the Pax Silica initiative made no mention of the world's leader in silicon production in its official declaration, Asia Times reports the statement is obviously 'aimed at China.' As such, the Pax Silica initiative has become regarded as a geopolitical opposition force to China's dominance in AI and semiconductor technology.

For some critics, Pax Silica and similar coalitions highlight a shift in traditional globalisation models, where the world has become more fragmented or divided, with countries forming separate pieces of a puzzle, so to speak, thereby raising security concerns in trade and decision-making.

However, Pax Silica is determined to 'reorganise' the global economy, and it is 'rooted in deep cooperation' with other nations (partners).

Furthermore, Pax Silica responds to 'Growing demand from partners to deepen economic and technology cooperation with the United States; The understanding that AI represents a transformative force for our long-term prosperity; Recognition that trustworthy systems are essential for safeguarding our mutual security and prosperity; Increasing risks from coercive dependencies; and The importance of fair market practices and policy coordination to protect sensitive technologies and critical infrastructure.'

In any case, Pax Silica is a momentous moment in AI, geopolitics, and economic policy, with the US strengthening ties with other nations to prioritise tech security, highlighting how governments and industries think about the future of AI.