The United States is preparing to pressure 35 partner countries to choose between Washington’s AI ecosystem and China’s competing technology framework. According to a leaked State Department draft letter reported by Reuters and covered by The Next Web, countries that signed the June “AI Opportunity Statement” would be encouraged to join the U.S.-led Pax Silica initiative, while being warned that joining both American and Chinese frameworks may not be compatible.
At the center of the dispute is Pax Silica, a U.S.-led effort focused on securing supply chains for AI, semiconductors, critical minerals, and related infrastructure. About two dozen countries have already joined, including Japan, Australia, and South Korea. The initiative offers members access to potential investment and supply-chain opportunities, but Washington increasingly appears to be treating membership as a strategic commitment rather than simply an economic partnership.
China is building its own alternative. In July, Beijing launched the World Artificial Intelligence Cooperation Organization (WAICO), promoting open-weight AI and a concept of digital sovereignty that allows countries to develop their own AI capabilities without depending on a particular technology bloc. The timing is significant because Chinese AI models have been rapidly narrowing the performance gap with U.S. systems; Bloomberg Intelligence recently estimated the gap at just 6% on leading benchmarks.
The emerging conflict therefore goes far beyond individual AI models. It is becoming a competition over chips, data centres, critical minerals, software, AI standards, investment, and national technology sovereignty. Countries such as those in Europe and the Global South may increasingly face pressure to choose sides, even as many would prefer to work with both Washington and Beijing. The draft letter could still be changed before being sent, but the direction is clear: the global AI industry is increasingly dividing into competing technology ecosystems.
