US launches pact for AI supply chains to face China

On Thursday, the United States revealed a collaborative agreement with its allies aimed at safeguarding supply chains for essential minerals used in artificial intelligence development. This initiative comes as China rapidly gains dominance in this critical sector. The pact, known as 'Pax Silica'—a nod to peace and silicon, the cornerstone of AI technology—was signed with key Asia-Pacific partners, including Japan, South Korea, Singapore, Australia, and Israel. The partnership is designed to create a more secure supply chain and reduce reliance on Chinese resources. A statement from the State Department emphasized that Pax Silica represents a new form of international cooperation, uniting nations that host the world's leading technology firms to harness the economic potential of the burgeoning AI landscape. Although the details of the agreement remain somewhat ambiguous, U.S. officials indicated that participating countries would collaborate to ensure the reliability of supply chains. Jacob Helberg, the State Department's undersecretary for economic affairs, remarked, "The global landscape is transitioning from a 'just in time' approach to one that is strategically aligned. Pax Silica is crucial in guaranteeing these nations have dependable access to the resources and infrastructure that are vital for maintaining competitiveness in AI." China currently holds a significant advantage in the race for AI resources, accounting for approximately 70 percent of the global supply of key rare earth minerals. This announcement comes on the heels of President Donald Trump’s recent decision to permit the export of Nvidia's advanced AI chips to China, reversing a previous restriction imposed by former President Joe Biden due to national security concerns. Other nations, including the United Arab Emirates, Canada, the Netherlands, and representatives from the European Union, participated in discussions regarding supply chains in Washington, although they have not formally joined the Pax Silica initiative.