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Both enduring continuities and important shifts specify the functioning of the planetary economy. While the North-South disagreement successful per capita income and assets utilisation remains an enduring feature, caller technologies specified arsenic semiconductors and Artificial Intelligence (AI) are gaining greater salience successful powering the planetary economy. These technologies volition person a important interaction connected the mundane lives of galore radical astir the world. Consequently, determination is present a increasing urgency to unafraid the proviso of Rare Earth Elements (REEs) and to nurture manufacturing processes associated with these technologies.
On December 12, 2025, the U.S. convened the inaugural Pax Silica Summit to unafraid the proviso concatenation of captious minerals and physique precocious manufacturing and logistics capabilities captious to caller frontier technologies specified arsenic semiconductors and AI. ‘Pax’ successful Latin means ‘peace’ and ‘Silica’ is simply a cardinal compound utilized successful spot manufacturing — taken unneurotic they suggest that the proviso concatenation for caller technologies should beforehand bid and prosperity. The Pax Silica Declaration noted that the inaugural seeks to trim coercive dependencies, unafraid planetary tech/AI proviso chains, and physique trusted integer infrastructure.
Major participants
The rank of the Pax Silica is evolving. While the U.S. and Japan are technological powerhouses, Australia is the starring exporter of Lithium (a cardinal constituent successful rechargeable batteries and integer products) and has important REE deposits. The Netherlands has starring firms specified arsenic ASML, which make precocious lithography exertion that enables semiconductor spot engineering, portion South Korea is well-known for its manufacturing prowess successful representation chips. Singapore besides has a agelong past of spot manufacturing successful collaboration with starring U.S. firms. Israel has made important strides successful AI software, defence-related technologies and cybersecurity. Moreover, the United Kingdom has the third-largest AI marketplace and a robust innovation ecosystem, which includes established probe labs and start-ups. Qatar and the United Arab Emirates bid ample concern funds and person initiated measures to make world-class AI ecosystems.
Canada, the European Union, the Organisation for Economic Co-operation and Development (OECD), and Taiwan participated successful the inaugural Pax Silica Summit arsenic observers, and they whitethorn beryllium admitted arsenic members astatine a aboriginal date.
Countering China
Pax Silica is simply a effect to caller geopolitical realities. There are concerns that China has emerged arsenic a main supplier of REEs and acquired the capableness to signifier the planetary travel of these resources. In caller years, China has restricted the travel of captious resources to execute its desired governmental and economical ends. Last year, successful effect to U.S. President Donald Trump’s tariff policies, China suspended the export of REEs to the U.S. and different countries. India besides experienced disruptions to the import of rare-earth magnets from China, negatively impacting the country’s automobile and electronics industries. The proviso of rare-earth magnets to India was restored lone aft Indian companies complied with China’s stringent licensing regulations, which included providing an undertaking that imported rare-earth magnets would not beryllium utilized for defence oregon dual-use purposes.
Even earlier the caller challenges successful accessing REEs, the pandemic demonstrated the limitations of proviso chains that are heavy reliant connected a azygous country. In 2021, India, on with Australia and Japan, launched the Supply Chain Resilience Initiative. India was besides moving with the Quad countries to fortify the proviso concatenation resilience of captious and emerging technologies. The Quad Critical Minerals Initiative was launched astatine the overseas ministers’ gathering successful Washington successful 2025. Interestingly, contempt being a subordinate of the above-mentioned initiatives, India was not invited to the inaugural gathering of Pax Silica. However, connected January 12, the caller U.S. Ambassador to India, Sergio Gor, successful his accomplishment speech, stated that India volition soon beryllium invited to articulation the Pax Silica.
India’s challenges
What would India bring to the array successful the Pax Silica? Indian and American firms person a past of steadfast collaboration successful the exertion domain. India has a beardown integer infrastructure, and its AI marketplace is increasing rapidly, with galore enterprises adopting AI solutions. It is besides existent that India’s AI and semiconductor ecosystems are good down those of Pax Silica countries. However, it should beryllium noted that India has launched AI and Semiconductor Missions with important fiscal allocations successful caller years. While Indian backstage companies specified arsenic the Tatas person invested successful the semiconductor segment, starring U.S. spot manufacturers specified arsenic Micron person besides invested successful India. There has besides been a dependable summation successful the fig of recently funded AI companies successful India. Furthermore, India is sending a ample fig of educated young radical to prosecute postgraduate and PhD programmes successful machine subject and related fields successful the U.S. If the existent U.S. visa policies persist, galore of these engineers volition person to instrumentality to their location country, providing India with a large, highly trained quality assets excavation to powerfulness AI and semiconductor industries.
Moreover, India has been moving to make resilient semiconductor proviso chains with different Pax Silica countries specified arsenic Japan and Singapore. Indian private-sector companies are besides collaborating with Israeli firms to found semiconductor fabrication plants successful India. By participating successful the Pax Silica, India tin scale-up its collaborations with different countries to make robust semiconductor and AI ecosystems successful the country.
However, India volition request to beryllium mindful of a fewer challenges that it needs to navigate carefully. Thus far, the subordinate countries of the Pax Silica, successful summation to their technological strengths, are U.S. allies and high-income countries. If India decides to articulation the Pax Silica, it volition beryllium the archetypal processing state to bash so. India volition besides beryllium the archetypal non-ally (but a strategical partner) of the U.S. to articulation the Pax Silica. This whitethorn make an ‘expectation gap’ betwixt India and the different members of Pax Silica. While India’s effect to planetary information threats whitethorn not undermine the interests of the U.S. and its allies, it volition disagree successful nuance. India volition beryllium keen to guarantee that its strategical autonomy is not diluted done its information successful the Pax Silica.
As a processing country, India has comparatively young semiconductor and AI ecosystems compared with those of different Pax Silica countries. Consequently, India volition question to support its semiconductor and AI ecosystems by granting home firms preferential attraction done subsidies, authorities procurement, and calibrated import regulations. While the existent temper successful Washington whitethorn not beryllium successful statement with specified argumentation measures, it remains unclear however different Pax Silica countries volition respond to specified initiatives.
The roadworthy ahead
At the moment, China is simply a starring subordinate successful the REE proviso concatenation and has already instituted export power regulations to sphere its ascendant position.
Beijing has besides not demonstrated a willingness to make REE proviso chains that are delicate to the improvement needs of emerging economies specified arsenic India. It is apt that the Pax Silica volition travel up with its ain export regularisation framework. Over time, 2 REE proviso chains volition predominate the planetary economy, namely that of China’s and Pax Silica’s. Given the past of collaboration betwixt Indian and Western firms successful accusation exertion and related domains, India whitethorn thin towards the Pax Silica.
However, fixed the existent strain successful economical relations with the U.S., India whitethorn question to person much conversations to amended recognize the imaginable trajectory of Pax Silica’s evolution.
Sanjay Pulipaka is the Chairperson of the Politeia Research Foundation. The views expressed present are personal.
