A senior US official has firmly rejected suggestions that the proposed Pax Silica Industrial Hub in the Philippines would erode Manila's sovereignty.
The comments address growing concerns that the joint supply chain project, designed to bolster artificial intelligence infrastructure and critical mineral processing, could compromise local jurisdiction.
The defense comes as the initiative faces sharp criticism from local advocates who argue the partnership risks undermining national control over strategic resources.
President Ferdinand "Bongbong" Marcos Jr. has previously championed the hub as a catalyst for quality employment and technological advancement for Filipinos, positioning it as a key node in the global AI supply chain.
The project sits at the center of the intensifying US-China competition for dominance in artificial intelligence and critical minerals.
Washington views the Philippines as a strategic partner in diversifying supply chains away from Chinese influence, while Beijing continues to exert significant economic leverage across Southeast Asia.
The hub is pitched as a global gateway for AI hardware and mineral processing, aiming to create a resilient alternative to existing supply networks.
Market participants are watching how this geopolitical positioning translates into tangible investment flows and policy support.