Washington is positioning India as a cornerstone in its efforts to diminish China’s global dominance, particularly in critical supply chains for rare earth minerals and advanced technologies. This strategic pivot was highlighted by Jacob Helberg, Under Secretary for Economic Growth, Energy, and the Environment at the State Department, during a key congressional hearing on economic security before the House Foreign Affairs Committee.
Helberg announced India’s formal entry into the US-led ‘Pax Silica’ coalition, an initiative designed to fortify supply chains for essential minerals, semiconductors, and artificial intelligence among allied nations. ‘India has been welcomed into this group recently,’ he stated, describing Pax Silica as an economic security partnership tailored for the AI era. He emphasized that nations controlling the industrial foundations of AI will lead the world in the coming decades, while others risk dependency.
Highlighting India’s strengths, Helberg pointed to its vast human resources and talent pool, capable of rivaling China. India also ranks as the world’s third-largest mineral refining nation. In contrast, China processes nearly 90% of global refining capacity, creating a fundamental vulnerability that the US is urgently addressing.
The strategy involves expanding refining capabilities through ‘brownfield projects’ in partner countries and injecting private capital into mining and processing ventures in nations like India, Australia, and South Korea. Broader tactics include economic alliances, export controls, and supply chain diversification to counter China’s trade and industrial policies.
‘China has not hidden its plans to decouple from us,’ Helberg remarked. ‘The question is whether we’re comfortable remaining dependent while they actively seek separation.’ Bipartisan concerns over China’s rising influence were evident, despite debates on US tariff policies.
Recently, 55 countries joined a US-hosted meeting on critical minerals to explore alternatives to China-dominated chains. Helberg also referenced a joint US-India trade statement highlighting major Indian energy purchases from the US and increased cross-border investments.
US-India ties are strengthening steadily, Helberg concluded, expressing full confidence in their trajectory. This partnership promises to reshape global tech and resource landscapes.