Advertisement
Asean
OpinionAsia Opinion
Opinion
Richard Heydarian

Philippines’ bet on shaky investment pledges from the US risks China’s ire

The Pax Silica plan to make the Philippines a vital node in a US-led tech supply chain is built on seemingly speculative promises and risks riling China

3-MIN READ3-MIN
9
Listen
US President Donald Trump meets Philippine President Ferdinand Marcos Jnr in the Oval Office at the White House on July 22, 2025, in Washington. Photo: Getty Images/TNS
Richard Javad Heydarian is an Asia-based academic, currently a Professorial Chairholder in Geopolitics at the Polytechnic University of the Philippines.

“You have absolutely no idea of what you’re talking about. The whole point of Pax Silica is to partner with countries who are good at doing different things because everyone wins from a secure supply chain,” wrote US Undersecretary of State for Economic Affairs Jacob Helberg on a social media website in response to an online critic of the US strategic initiative with the Philippines.

The spirited exchange came after Manila’s reported rejection of a request to extend diplomatic immunity to US personnel overseeing a planned 4,000-acre industrial hub in the Philippines. Under Pax Silica, the Philippines is to emerge as a critical node of a US-led global supply chain, with a focus on cutting-edge industries such as semiconductors and artificial intelligence (AI).
Helberg, having recently visited Southeast Asian capitals including Manila to push Pax Silica, rejects any report of a diplomatic immunity request as “patently untrue”. The episode highlights both Pax Silica’s sensitivities and geopolitical relevance. The initiative is supposed to complement America’s expanding military footprint in Asia, especially in the Philippines.
Advertisement
By leveraging access to Manila and with an eye on China, the Trump administration aims to both enhance military interoperability with regional allies via massive drills, such as the Balikatan exercises, and to strengthen economic interdependence with key Asian economies.

America has long undergirded the region’s security architecture by establishing naval dominance across the Indo-Pacific and serving as a primary source of capital and investment. But in recent years, as China began to reclaim its position as Asia’s dominant power, American leaders have struggled to offer a constructive counterstrategy.

Advertisement
In his first term, US President Donald Trump torpedoed Washington’s sole effort at countering China’s economic rise in Asia by withdrawing his country from the Trans-Pacific Partnership. He went on to alienate allies with massive tariffs that disrupted transpacific trade linkages. Thanks to a bipartisan protectionist turn in America, the avowedly multilateralist Biden administration struggled to get even a modest digital trade agreement off the ground.
Advertisement
Select Voice
Select Speed
1.00x