High price of certainty in New Clark City

Washington’s latest proposal for a new artificial intelligence (AI) hub in New Clark City resembles an extraterritorial arrangement.

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(MANILA BULLETIN MAY 23, 2026)

The United States (US) is asking Manila to grant diplomatic immunity and US common law jurisdiction to the 1,600-hectare industrial zone—an unprecedented request. Philippine agencies, led by the Bases Conversion and Development Authority (BCDA), denied the idea, noting that treating a commercial tech zone like an embassy violates local law. Yet, as extreme as the American demands are, they reveal the critical challenge: the Philippines has a lot of work to do if it wants to attract top-tier tech investments.

The planned hub is envisioned as the centerpiece of “Pax Silica,” a US-led economic alliance meant to offset China’s dominance in global AI and microchip supply chains. Washington frames this as the American alternative to Beijing, relying on private corporations instead of state-owned enterprises. But private tech firms are risk-averse. Washington’s demands for predictability and speed demonstrate that American investors are concerned about how business actually gets done in Manila.