Behind the ILLUSION: The U.S. wants to END its dependence on CHINA and has a PLAN @Visualpolitiken

There's a line from antiquity attributed to Alexander the Great that famously said that the peoples of Asia were slaves because they had not yet learned to pronounce the word no. Alexander viewed himself as a conqueror speaking to a world of subjects. And after traveling 11,000 m for 8 years, it was in India that Alexander finally met his match and turned around. If Alexander the Great dreamed of conquering the known world, China has achieved something even more powerful, becoming the country on which the functioning of the modern world literally depends. And I'm not even exaggerating. Just look at the data. Beijing controls nearly 90% of global rare earth refining. It refined 65% of lithium, 75% of graphite, and 68% of cobalt. In 2024, it produced over 1 billion tons of steel, accounting for more than half of global production. In solar energy, it dominates more than 80% of every stage of the production chain from polysilicon to the final modules. And when it comes to batteries, according to the International Energy Agency, it controls between 60% and 100% of each of the systems key links. Not to mention logistics, because you see, more than 80% of global trade is transported by sea. And it turns out that China has become the world's best connected economy in terms of maritime networks with a dominant position in ports, transportation, and ship building. Keep that last point in mind because nearly 60% of the world's tonnage of new ships leaves Chinese shipyards every year. Mindblowing. It turns out Beijing has become the new Alexander the Great of our time across the entire spectrum. a player that aspires to dominate the world, but which like the historical figure may now be encountering the first nose to its dominance on the Asian continent. And it's precisely in this context that we find new stories like this. Philippines, US to build industrial hub to strengthen supply chain security. — The United States has launched a plan to try to compete with the Asian giant dominance and it is placing some of the first pieces in the Philippines. And while during the 20th century power was measured in barrels of oil, tons of steel, and armies capable of moving them, these days I think you all know that the game has completely changed. In the 21st century, the new oil isn't black. It's much more ethereal. It's chips, data centers, algorithms, and artificial intelligence. Whoever controls the ability to design, manufacture, and power these technologies will not only dominate the economy, but also defense, information, and perhaps even the way we think. That is why this is the latest great race that is beginning to unfold. The United States is in the lead, but its problem is that the foundation of its entire high-tech production system depends largely on China. So, the question is, what exactly is Washington's plan to reverse this situation? Can an alternative to the world's largest production system really be built? And what on earth does the Philippines have to do with this? Stay tuned because that's what we're about to discover. — The technological NATO. In December 2025, the United States launched what is known as Pax Silica. This is Washington's attempt to build a supply chain for its tech industry that bypasses China. In a way, they aim to build a sort of technological NATO, which instead of tanks, aircraft carriers, and soldiers, focuses on critical minerals, chemicals, and automated factories. The logic is simple. China doesn't just dominate one part of the system. It dominates almost every part. It processes minerals, manufactures components, controls magnets, assembles technology, operates on an industrial scale, and if necessary, can turn any of those bottlenecks into a political weapon. And that's why Washington wants to foster a network of countries that would alternatively cover all the links in the production chain that fuels its technological engine. In geopolitical terms, it makes perfect sense. So back in December when this project was launched, six countries signed on to this US initiative. Australia, Israel, Japan, South Korea, Singapore, and the United Kingdom. And since then, in recent months, a few more have joined, such as the Philippines, Finland, Sweden, the UAE, and a few others. Although of all of them, the addition that has garnered the most attention has been this one. US builds tech block to counter China adds India as newest member. With PAX silica, Trump administration retreats from adversarial stance it took toward allies and friends last year. — Visual politic, India's recent inclusion in this agreement is no coincidence. It aims to cover the first link in the entire production chain for advanced chips. Essentially, the most important technological device of our time. The component on which all technological development depends from AI to robotics through the space race to military supremacy. That is why it's important for us to understand what the production chain is and what this PAX silica is aiming for.

Well, the first link that India is expected to cover is minerals. a leading role it will share with Australia and the fact is that Cambara plays a key role in this link because Australia has vast natural resources. Among them, the sixth largest reserve of rare earths in the world. In fact, the Australian company Lionus Rare Earths is the largest producer of rare earths outside of China. But watch out because New Delhi's role is even bigger. It's estimated that India possesses between 6. 9 and 8. 52 million tons of rare earth reserves representing approximately 5% to 8% of all global deposits. The problem that potential is barely being tapped. Its annual production hovers around 2,900 tons, less than 1% of global demand. This forces India itself to import up to 90% of its needs, mainly from China. In other words, India has the resource. But despite this, it continues to depend on its greatest rival. Well, that is what they want to change now because that is exactly what Pax Silica is seeking to find countries where these minerals can be developed beyond Beijing's control. And in a way, that explains why Washington has significantly softened its tone toward China in recent months. Because when it comes down to it, it's not even just about these minerals. India is the only country on earth that really provides a real alternative in terms of the depth of its human capital and the scale of its market to China. India has something that no one else has on the same scale, population, market, technological talent and a massive industrial base. This is also leading US companies to start investing heavily in this country. For example, in October 2025, Google announced a $15 billion investment in data centers in the southeastern part of the country. And in December, Microsoft unveiled its largest investment in Asia to date, a $17. 5 billion commitment to develop cloud and artificial intelligence infrastructure in the same country. But let's not get sidetracked. That's just the foundation of the supply chain. Australia and India will provide this group with minerals crucial to the tech industry in a secure manner without relying on Beijing. But of course, those minerals aren't much use if you can't use them, process them, and turn them into useful components. That's where Japan comes in. Tokyo is crucial to the chemical and material side of semiconductors. Japanese companies such as JSR, Shinetsu, and Tokuyama dominate the advanced chemicals needed for ultraviolet lithography machines. The machines that etch microscopic circuits onto silicon wafers. What's more, Shinetsu Chemical and Sumco are among the world's leading wafer manufacturers. And those are just a few examples because the truth is that although it's often overlooked, Japan is an absolutely essential player in the production chain for the most advanced chips. Nvidia and others court niche Japanese supplier to ease AI bottlenecks. Glass cloth maker Nitabo is the latest example of the country's overlooked role in the supply chain. — Without the chemicals and components supplied by Japan, there are no advanced chips. That's why Japan is deeply involved in this whole story. Because on top of that, in 2010, China already showed its teeth by imposing restrictions on rare earths following a diplomatic dispute. Since then, Tokyo has been trying for years to reduce its dependence on Beijing. And this is another step in that direction. Then we come to South Korea, which by the way has been on fire lately. Look at what happened with the Cosby, the Korean stock market index in 2026. — Cosby nears 76% gain as AI rally accelerates. — The thing is when we talk about AI, we usually think of Nvidia's famous GPUs, the massive processors that train models like chat GPT, Gemini or Claude. But those chips on their own aren't much use because artificial intelligence doesn't just need computing power. It needs to constantly process massive amounts of data. We're talking about billions of data points flowing in and out at breakneck speed. And that's where one of the most significant bottlenecks currently brewing in the tech race comes in. Advanced memory. Samsung and SKH Heinix warned that AIdriven memory shortages could last until 2027 and beyond as HBM demand explodes. Customers are already reserving supply years in advance. More specifically, so-called HBM or high bandwidth memory. It's a fundamental technology for powering the most advanced GPUs on the planet. Because you see, you can have the most powerful processor in the world, but if the memory isn't capable of sending data to it fast enough, the whole machine slows down. It's a bit like putting a Formula 1 engine in a car and connecting it to a fuel holes the size of a straw. No matter how much power you have, you'll quickly run out of fuel. But the point is that South Korea dominates a critical part of the global supply chain here. Samsung and SKH Highix along with the US-based Micron form the world's top trio of advanced memory manufacturers. In fact, SKH Highix have become one of

the main suppliers of HBM memory to Nvidia. The company at the center of today's artificial intelligence boom. But let's continue because right here, another of the most important links in this entire architecture comes into play. Singapore. Singapore functions as a sort of nerve center within the chain. We're talking about a cluster that combines advanced manufacturing, logistics, investment, ports, data center, and technology. All concentrated in one of the most stable and sophisticated places in Asia. It's no coincidence that it was the first country in Southeast Asia to join PAC silica. To give you an idea, this tiny country produces around 10% of the world semiconductors. It's true though, keep in mind, these aren't the most advanced chips. Those are still mainly Taiwan's domain. Singapore manufactures the chips that power cars, industry, and consumer electronics. But, and this is very important, it's also a major hub for memory production. As we just saw, precisely the component most lacking in artificial intelligence. And not only that, but approximately 20% of the industrial equipment used worldwide to manufacture chips also passes through Singapore. In other words, the country has become a crucial player in both how and with what semiconductors are made. And as if that weren't enough, Singapore also boasts around 1. 4 gawatts of data center capacity. To give you an idea, that's twice as much as all of Spain combined, concentrated in a country smaller than the city of Madrid, which is absolutely mind-boggling. Well, I think you now have a much clearer picture of the production chain behind chips. As you can see, it's not limited to design in the United States or manufacturing at TSMC's factories in Taiwan or Samsung's in South Korea. There is much more to it, but we haven't even reached the end yet. And now it's the UK and Israel's turn to complete the PAX silica architecture. Here, we're no longer talking so much about factories or minerals. We're talking about the invisible control of the system because a global technology chain doesn't run on resources and production alone. It needs standards and cyber security. The United Kingdom contributes precisely one of the most important and least visible pieces, regulatory and technological alignment. Something that might sound incredibly boring, but let's not fool ourselves. The player that defines the rules and sets the industry standards, the one that designs the overall architecture is crucial. And in this, the British are ahead. Because take a look, the UK is home to ARM, a company that goes largely unnoticed, but designs the processor architecture used by virtually every smartphone on the planet and an increasing number of artificial intelligence chips. Apple, Nvidia, Samsung, and Qualcomm pay their licensing fees religiously. We're talking about more than 250 billion chips manufactured with a British design inside. Put another way, a significant portion of the digital world's brain bears the city's signature. And finally, Israel covers another critical front, artificial intelligence applied to defense, cyber security, and advanced military technology. In fact, we're already seeing its application in the Middle East. And Washington knows full well that the next major technological competition will not be merely economic. It will also be strategic and military. But there's one more detail. Alongside all this infrastructure is the so-called project vault, a US stockpile of critical minerals valued at nearly 12 billion established in February 2026. a sort of national insurance policy so that when the time comes, Washington has the minerals it needs to hold its ground. Overall, as you can see, the message is quite clear. Washington wants to prepare so that the industrial future of the United States does not depend on whether Beijing decides to turn the tap on or off. This is the plan. That said, this packed silica chain still has two major gaps, Taiwan and the Netherlands. Taipei manufactures the most advanced chips on the planet. The Netherlands is home to ASML, the company that produces the $200 million lithography machines, without which there would be no state-of-the-art semiconductors. Both countries were present at the summit, but they are not yet official signitaries. All in all, this Pilica represents a dramatic shift. Despite Trump's fiery rhetoric with this plan, the United States acknowledges that it cannot win the AI race alone. And a new link has now emerged in this whole network that promises to be crucial. We're talking about the Philippines visual policy community. This is the Luzon economic corridor. We're talking about a joint initiative by the Philippines, the United States, and Japan to invest in transportation, clean energy, and supply chains for semiconductors and other crucial industries. The corridor connects major industrial centers north of Manila such as Clark and Sabic with the capital's ports and markets. After all, Luzon is the largest, most populous, and most important island in the Philippines. The

route includes strategic points such as Sububi, Clark, Manila, and Batangas. And take note of this because Subi and Clark hold enormous symbolic significance. They were former US military bases until they were transformed into commercial zones in 1991. In other words, what was once essentially US military infrastructure is now returning to the game board to host critical economic, technological, and logistical infrastructure in the US race. That is new uses with old objectives. In fact, this corridor is the first project of the global infrastructure and investment partnership in the Indo-Pacific, a US-led initiative presented as an alternative to China's Belt and Road initiative. And for now, some US companies seeking to move part of their supply chains out of China to avoid total dependence on the Asian giant have already set up shop here. However, the latest crown jewel is the new project they've dubbed the Golden Hub US to create high-tech manufacturing zone in the Philippines. Hub will aim to forge China proof supply chains with automated factories and local resources. Pacilica's new project in New Clark City, Tarlac, is an artificial intelligence industrial hub spanning some 4,000 acres or approximately 1,600 hectares. Washington has presented it as the AI native investment acceleration hub. Basically, an industrial zone designed to attract automated factories, mineral processing, semiconductors, advanced electronics, and industrial operations linked to artificial intelligence. And most striking of all is that the United States will occupy that land without paying a single dollar. It will administer it as a special economic zone. As a result, this area will enjoy diplomatic immunity, protection similar to that of an embassy and will operate under US common law. We are essentially talking about a kind of US industrial enclave on Philippine soil. It's the first agreement of its kind in the world. And naturally, having said that, the question is obvious. What on earth is Washington doing in the Philippines? Well, the answer has several layers, and first and foremost, it's the minerals. The Philippines is among the world's richest countries in mineral resources and is the world's second largest producer of nickel. One out of every four tons of nickel ore exported worldwide comes from that country. They are the second largest producer, but the world's largest exporter of nickel ore. And not only that, it also has deposits of copper, chromite, and cobalt. All of these materials are essential for batteries, electronics, defense, and advanced technologies. What's more, areas with high potential for rare earth elements have also been identified in the country, particularly in Palawan. Reserves that remain virtually untouched. The problem? Well, the Philippines lacks the capacity to extract, process, and convert these resources into materials ready for use in the tech industry, nor does it have the capital to catch up. The hub reinforces our semiconductor and electronics industry roadmap by linking our critical minerals advantage with our established strengths and by opening pathways toward higher value and advanced manufacturing. In other words, the Philippines can provide nickel, copper, cobalt, and potentially rare earths as well outside of Beijing's control. It can provide space for processing facilities. And furthermore, the country also has some industrial expertise in semiconductors. That said, it is positioned at the lower value end of the supply chain, specifically in chip assembly, testing, and packaging. Nevertheless, this means the country already has specialists and a certain level of specialized expertise. In fact, semiconductors consistently account for more than half of Philippine merchandise exports. Electronics exports with semiconductors as the main driver reached about $46 billion in 2022, and current trends suggest that all records are set to be broken. Philippine semiconductor exports may reach $50 billion this year. — Well, Washington has thrown all these ingredients into the mix and has seen an opportunity to launch an unprecedented experiment to turn the Philippines into the United States's new preferred partner for developing a key technology hub in the heart of Southeast Asia under US control and US regulations. Interesting, don't you think? But not surprisingly, it's not that simple. And I'm not just saying that because these political plans designed in back rooms usually end up clashing with market realities. I'm also saying it because of what we're about to see next. Pay attention. — The fine print of the plan. Visual politic. The PACIA project in the Philippines has several problems and the first is the most obvious. China. Beijing doesn't see PACIA as an innocent technological alliance. It sees it as an attempt to isolate China, reduce its influence, and build an alternative supply chain right under its nose. China opposes any country setting up exclusive trade blocks to disrupt the international trade order. China has long played an important and constructive role in keeping global industrial and supply chains safe and

stable. — And here is something we cannot overlook. China is not an external actor in the Philippines. It has been a major player within a country where one of the strangest power struggles in global geopolitics is beginning to unfold. Just look for example at how in recent years Beijing has financed mega projects on the very island of Luzon such as the Kaliwa dam designed to bolster water and energy supplies for Metro Manila or various infrastructure projects in the Cordella region in the north of the island. So this new pack silica initiative is not just a plan to reduce dependence on China globally. It is also in practice another step in the direct competition with Beijing for control of the Philippines. This has escalated tensions. China holds live fire drills in waters near Luzon as Japan joins military exercises in the Philippines. In recent years, we have seen repeated clashes between Chinese and Philippine ships in the South China Sea. aggressive maneuvers, blockades, ramming, high pressure water jets, and just a few days ago, as we've just seen, live fire exercises. Because the truth is that this initiative linked to Washington's Pacilica is the latest step in a series of measures taken to prevent Chinese dominance over the Philippines. In fact, since 2014, the United States has built military facilities in Luzon, facilities that could play a key role in the defense of Taiwan, the global epicenter of advanced chip manufacturing. That is why China will do everything in its power to derail this project. Let there be no doubt about that. And then on top of that, there is another problem. The agreement for the hub in New Clark City has a crucial aspect to consider. Diplomatic immunity and the purported operation under US law are factors that could directly conflict with the Philippine Constitution. Some analysts have warned that the cent's legal status could be challenged in the Supreme Court. Because it's one thing to create a special economic zone with tax incentives, fasttrack permits, and simplified rules, and quite another to create a sort of US industrial enclave with the Philippines. And of course, these doubts, which are also generating a lot of political criticism, could fuel legal uncertainty that ultimately derails its ambitious goals because, as you know, intentions are one thing and reality is quite another. And that creates an obvious problem by bursting the legal certainty bubble. That is by undermining the environment where potential civil disputes, contracts, or investments do not depend entirely on Philippine political or judicial uncertainty. In short, the United States wants to build a more secure supply chain without China. What we've seen here is its grand plan, and the Philippines project could mark a turning point if it actually comes to fruition. Although, what can I say? At Visual Politic, we're skeptical of plans that are more political than economic. But in any case, it's a very innovative initiative. Which brings us to the questions. What do you think? Would you support the establishment of territories in your countries with jurisdictions, rules, and oversight by foreign powers? Can you imagine a territory governed by Swiss regulations in Central America? How would that sound to you? Leave your thoughts below in the comments, and let's start the discussion. And very importantly, if you like this video, give it a like and subscribe to Visual Politic if you haven't already. These small gestures help us out a lot. As always, thank you very much for watching. Take care. I'll see you next time.