Singapore joins Pax Silica tech alliance amid China’s warnings of supply chain decoupling

Singapore has joined six countries in signing the non-binding Pax Silica Declaration, signalling their intention to cooperate on artificial intelligence (AI), digital infrastructure, and resilient technology supply chains.

The declaration was signed on 12 December, 2025, in Washington, at the conclusion of the inaugural Pax Silica Summit convened by the United States. Other signatories include Australia, Israel, Japan, South Korea, the United Kingdom, and the US itself.

The Ministry of Digital Development and Information (MDDI) announced the development on 14 December, noting the declaration as a “shared commitment to advance prosperity, technological progress and economic security”.

Singapore was represented by Chng Kai Fong, MDDI’s Permanent Secretary for Development, who attended at the US government’s invitation. At the summit, Chng described the declaration as “forward-looking” and highlighted the role of technologies like AI in creating public benefit through international and private-sector collaboration.

According to the US State Department, the Pax Silica initiative aims to build “trusted” information networks and promote economic security among like-minded partners. The name refers to pax (Latin for peace) and silica, the base material used to produce silicon — a key element in semiconductors, which underpin AI and modern computing.

The declaration outlines cooperation in a wide array of sectors, including ICT systems, semiconductors, data infrastructure, logistics, minerals processing, and energy. It envisions joint efforts on the “strategic stack” of the digital economy — from software and compute power to advanced manufacturing and materials refinement.

China’s strong reaction

While the declaration does not explicitly mention China, its strategic implications have drawn sharp criticism from Chinese state-affiliated media and government-linked experts.

According to Global Times, a publication widely regarded as a mouthpiece of the Chinese Communist Party, the agreement is seen by Chinese experts as the latest US-led effort to secure dominance in AI by prioritising access to critical minerals and decoupling China from global semiconductor supply chains.

“The move is essentially aimed at decoupling with China in the semiconductor supply chain,” Global Times reported, quoting unnamed experts who warned that such strategies risk disrupting the global supply chain and raising chip production costs.

Zhou Mi, senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said the alliance reflects the US’s intention to use allied countries to advance its own innovation capacity. He argued that the initiative seeks to align other countries with US industrial interests under the guise of cooperation.

“Such efforts may create some opportunities for participating parties... but these measures may not necessarily translate into tangible corporate action,” Zhou told Global Times on 13 December.

Another industry analyst, identified only by the surname Gao, added that the move represents “geopolitical games” in an AI-driven era, cautioning that supply chain fragmentation could lead to higher costs. He suggested that despite efforts to decouple from China, the country’s deep integration in global tech supply chains makes such a strategy unlikely to succeed.

Zhou also cast doubt on the market viability of the alliance, stating that “companies are likely to proceed cautiously” and may hesitate to share core technologies or participate in risky ventures. He cited past delays in related US investment projects and emphasised that companies are unlikely to prioritise geopolitically driven strategies over profitability.

He noted that China remains a dominant player in both the supply and demand of critical minerals and semiconductors. “Excluding China effectively removes a significant portion of the global market,” Zhou said. This would diminish economies of scale and affect competitiveness, he warned.

According to Gao, the chip industry still relies on globalisation — with international standards, cross-border collaboration, and talent mobility. “The transformation of this alliance from government-led to market-driven remains questionable,” Zhou added.

Context of prior moves

The Pax Silica Declaration follows a broader trend of US-led initiatives aiming to secure critical supply chains. On 1 November, the Group of Seven (G7) announced 26 new investments under its Critical Minerals Production Alliance, involving nine partner countries.

In response to that announcement, China’s Foreign Ministry spokesperson Guo Jiakun urged the G7 to uphold principles of fair competition and avoid creating new rules that disrupt international trade.

Guo reiterated a similar position at a press conference on 12 December following the Pax Silica Summit, stating that “all parties should adhere to the principles of a market economy and fair competition”.

China’s concerns also reflect its dual role as a key supplier of raw materials and a major consumer of high-tech products. Analysts argue that sidelining China could threaten the long-term sustainability of the global digital economy.