An anonymous reader quotes a report from the Wall Street Journal: An agreement with the Philippines to establish a high-tech industrial hub is the Trump administration's latest effort to lessen China's dominance over global supply chains. The deal to build up American manufacturing across a stretch of the island of Luzon, signed Thursday, will offer U.S. companies access to essential inputs such as critical minerals that bypass Beijing's control. The artificial-intelligence-powered manufacturing hub is planned for a 4,000-acre site given to the U.S. by Manila, said undersecretary of State for Economic Affairs Jacob Helberg. The U.S. will occupy the site rent-free and administer it as a special economic zone.
The hub will have diplomatic immunity, such as the protections afforded to an American embassy, and operate under U.S. common law -- the first arrangement of its kind anywhere in the world. The two-year lease is renewable for 99 years. [...] "You can't build anything in Ohio if the minerals and the process materials are controlled by an adversary who can cut you off tomorrow," Helberg said in an interview. [...] The planned manufacturing hub is largely conceptual at this stage, and details, including which American companies will participate and just what they will build in the Philippines, are yet to be determined.
[...] The administration will ask companies to put forward proposals to compete for a spot in building out the hub, giving priority to bids that will help move critical minerals processing and manufacturing off Chinese suppliers. Investment will have to come from private-sector companies -- not the U.S. government. Factories approved for operation in the hub will be highly automated, Helberg said, using autonomous systems to operate around the clock. The Philippines has a history of robust manufacturing, particularly in semiconductors, but that has stagnated in recent decades because of high energy and logistics costs. Companies will have to address in their proposals how they will contend with energy costs and workforce needs; they can send American workers overseas or hire locally, Helberg said.
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