Media: U.S. to Build High-Tech Manufacturing Zone in Philippines, Weakening China's Supply Chain Influence
The United States and the Philippines recently signed an agreement to establish a high-tech industrial hub on Luzon Island, aiming to boost American manufacturing and reduce reliance on China for critical minerals and raw materials. This move is seen as the latest action by President Donald Trump’s administration to diminish China’s dominant position in global supply chains.
According to The Wall Street Journal, Jacob Helberg, U.S. Deputy Secretary of State for Economic Affairs, stated that the manufacturing center will be AI-driven and is expected to be located on approximately 1,620 hectares of land provided by the Philippines. The area will operate as an economic zone, with the U.S. enjoying rent-free status.
Under the plan, the zone will enjoy diplomatic immunity similar to that of a U.S. embassy and will be governed under the American common law system—a model unprecedented globally. The initial lease period will be two years, extendable through renewal, with a maximum total duration of up to 99 years.
The project aligns with the Trump administration’s policy direction to strengthen control over supply chains, aiming to enhance U.S. manufacturing capabilities in defense and other critical industries while reducing China’s dominance in supplying key minerals and components for the electronics sector.
However, the manufacturing center is still in the conceptual stage, and participating companies as well as specific production contents have not yet been determined.
Helberg said: "The current geographic layout of global supply chains is unsustainable. If we examine the entire system layer by layer, we can see it is almost entirely dominated by China."
He added that the Philippines possesses abundant resources such as nickel, copper, ferrochrome, and cobalt, and could future provide raw materials to U.S.-owned enterprises in the region, with exports destined for the United States to support domestic manufacturing.
Gracelyn Bascaran, director of the Critical Minerals Security Project at Washington-based think tank Center for Strategic and International Studies (CSIS), noted that the Philippines is one of the world’s most resource-rich countries and also the second-largest producer of nickel globally.
Nevertheless, she emphasized that resource reserves do not equate to stable supply. Due to the Philippines’ primary export of unprocessed raw materials and lack of processing capacity, these minerals cannot easily be integrated into high-tech supply chains.
Source: rfi
Original: toutiao.com/article/1862756060661832/
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