US Undersecretary Calls China Semiconductor Supply Chain a 'Hostage Chain' on May 18

According to US Undersecretary for Economic Affairs Jacob Helberg, on May 18, China's dominance in critical semiconductor and technology inputs represents a "hostage chain" rather than a genuine supply chain. "When ninety percent of a critical input comes from one country, you do not have a supply chain," Helberg said at the site of the planned Economic Security Zone in New Clark City, Philippines, during the unveiling of the Pax Silica initiative.

Helberg criticized instances where China controls rare earth exports and critical minerals, allowing "a single notice from an office in a far-away capital" to disrupt entire industries. The United States and its partners aim to build an alternative supply chain network for artificial intelligence and semiconductor-related industries through the Pax Silica framework.