ASEAN faces AI allegiance choice between US Pax Silica and China's WAICO

September 6, 2026 at 05:33 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

ASEAN faces a strategic choice between the US-led Pax Silica and China's World Artificial Intelligence Cooperation Organization (WAICO), launched in Shanghai in July 2026 with 29 founding members. Washington is preparing a letter to Pax Silica partners stating that "to be part of everything is to be part of nothing," signaling pressure to choose sides. The bloc's data center costs below the global average and mature manufacturing infrastructure give it leverage to hedge.

Key Facts

Pax Silica was launched by the US in December 2025 to secure supply chains for semiconductors, AI technologies, and rare earth minerals.
China's WAICO was launched in Shanghai in July 2026 with 29 founding members.
Washington is preparing a letter to Pax Silica partners stating that "to be part of everything is to be part of nothing."
In June 2026, the US Department of Commerce issued an emergency export control order restricting access to Anthropic's Mythos 5 and Fable 5 models to US nationals only.
ASEAN has data center operating costs below the global average and mature manufacturing infrastructure.

Competing AI Orders

The global AI landscape is shaped by two competing world orders: Washington's Pax Silica and Beijing's World Artificial Intelligence Cooperation Organization (WAICO). Pax Silica, launched by the US in December 2025, seeks to secure global supply chains for semiconductors, semiconductor manufacturing equipment, AI technologies, and rare earth minerals. WAICO, launched in Shanghai in July 2026 with 29 founding members, positions itself as a champion of emerging economies and accessible AI. Under Secretary of State Jacob Helberg, architect of Pax Silica, said at a Hudson Institute event in January that he was not interested in a "purity test."

US Pressure

According to an internal draft viewed by Reuters, Washington is preparing a letter to Pax Silica partners stating that "to be part of everything is to be part of nothing." The State Department declined to comment on the letter to Reuters. In June 2026, the US Department of Commerce issued an emergency export control order demanding that Anthropic restrict access to its frontier models, Mythos 5 and Fable 5, to US nationals only. The order was later lifted, but the episode showed Washington's ability to limit other countries' access to leading American models.

ASEAN's Position

ASEAN has data center operating costs below the global average, mature manufacturing infrastructure, and rapid uptake of digital AI applications and clean energy. The eleven-member bloc has long tried to chart a middle path between the US and China. Chinese AI models are considerably cheaper due to more efficient designs, competitive pricing strategies, and reduced energy and infrastructure costs. Chinese firms have a lead in AI applications and diffusion, particularly in manufacturing and logistics, making them attractive partners to ASEAN governments and startups.