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US Picks up Netherlands for Pax Silica Alliance in key win for strategic chip alliance
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Despite disagreements over trade policies with China, the U.S. and the Netherlands have signed the European nation to the Pax Silica initiative of countries looking to reduce reliance on China for key raw materials and manufacturing expertise in the AI industry, as reported by Reuters.
Key facts
- President Trump signed the National Defense Authorization Act in 2019, which effectively banned Chinese firms Huawei and ZTE from being used in any U.S. government agencies
- The Netherlands and other strategically aligned economies with a foothold in the AI supply chain face a tricky situation in 2026
- At its outset, Pax Silica secured non-binding signatures from seven countries, including Australia, Israel, Japan, South Korea, Singapore, the United Kingdom, and the United States
- But in 2026, even as the U.S. has approved the sale of some high-end Nvidia chips to China, its new Pax Silica Initiative and MATCH Act are putting more pressure on China than ever before, and global
Summary
Dutch Trade Minister Sjoerd Sjoerdsma travelled to Washington this week to sign the deal, meeting with U.S. Commerce Secretary Howard Lutnick and fellow lawmakers as part of ongoing negotiations around trade in high-tech chips and hardware, particularly with China. Speaking with reporters, he said that the U.S. and the Netherlands have shared goals in preventing sensitive technology from ending up in dangerous hands - the Netherlands famously seized key Dutch chip manufacturer Nexperia from its Chinese parent company, Wingtech, in 2025. That could affect the Netherlands' national security and market position of key Dutch companies, he said.