---
title: "The United States and the Philippines have reached an agreement to establish an AI-driven manufacturing center, enjoying diplomatic immunity, with civil disputes handled according to U.S. law"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283087610.md"
description: "The United States and the Philippines have reached an agreement to establish an AI-driven high-tech industrial center in Manila, enjoying diplomatic immunity, with civil disputes handled according to U.S. law. The center aims to ensure the supply of critical minerals and weaken China's dominance in the global supply chain. The project lease term is two years, with an option to renew for 99 years. The United States will prioritize bidding proposals that can transfer critical mineral processing and manufacturing from China. This agreement marks the Philippines' entry into the \"Silicon Peace\" alliance, aimed at securing supply chain safety"
datetime: "2026-04-17T03:52:11.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283087610.md)
  - [en](https://longbridge.com/en/news/283087610.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283087610.md)
---

# The United States and the Philippines have reached an agreement to establish an AI-driven manufacturing center, enjoying diplomatic immunity, with civil disputes handled according to U.S. law

According to The Wall Street Journal, the Trump administration has reached an agreement with the Philippines to collaborate on establishing an AI-driven high-tech industrial center on a 4,000-acre plot of land in Manila. The project will be managed as a U.S. economic special zone and will enjoy diplomatic immunity, aimed at ensuring critical mineral supplies and weakening China's dominance in the global supply chain.

The manufacturing center is planned to be built on land provided by the Manila government. The U.S. will use the land free of charge and operate under U.S. common law, with the center enjoying diplomatic immunity similar to the protections afforded to U.S. embassies, making it the first arrangement of its kind globally. The lease term for the project is two years, with an option to renew for 99 years. Jacob Helberg, the U.S. Deputy Secretary of State for Economic Affairs, stated that establishing a framework for diplomatic immunity aims to provide certainty for businesses, ensuring that civil disputes are handled under U.S. law.

Helberg pointed out that currently, all aspects of the global supply chain are dominated by China, and the geographical layout is completely unsustainable. He warned that if adversaries cut off supplies of minerals and processed materials, U.S. manufacturing would come to a standstill. The report noted that China currently controls about 90% of global rare earth processing and about 70% of lithium-ion battery production, and had previously cut off most rare earth exports during last year's trade conflict.

## China Opposes the Establishment of Exclusive Trade Groups

In response to this agreement, Liu Pengyu, spokesperson for the Chinese Embassy in Washington, stated that China opposes any country establishing exclusive trade groups that disrupt international trade order and emphasized China's important and constructive role in maintaining the security and stability of global industrial and supply chains.

## Priority for Bids Transferring Out of China

The Philippines is rich in resources such as nickel, copper, and cobalt, and is the world's second-largest nickel producer. The U.S. government will require companies to submit proposals for bidding, with funding to come entirely from private enterprises, and will prioritize bids that can transfer critical mineral processing and manufacturing out of Chinese suppliers.

Helberg added that approved factories will operate around the clock using highly automated systems. Furthermore, the agreement marks the Philippines' formal entry into the "Pax Silica" alliance, aimed at ensuring supply chain security and countering China's influence in AI

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