Manila has rejected US proposals for an 'AI-native' industrial hub to be governed by US laws or protected by diplomatic immunity. Philippine officials stated the zone will operate under local laws without special arrangements.

A US plan to build an “AI-native” industrial hub in the Philippines has highlighted the political sensitivities around Washington’s push to secure critical technology supply chains, after Manila rejected proposals for the zone to be governed by US laws or covered by diplomatic protections. Philippine officials said the planned economic security zone under Washington’s Pax Silica initiative would remain covered by local laws, clarifying that there would be “no special arrangement” for the...