The United States is planning to build an “economic security zone” in the Philippines to counter China’s dominance in critical technologies.

The 4,000-acre (1,619-hectare) hi-tech industrial hub will reportedly be the first of its kind in the world, operating under US common law despite being on Philippine soil.

Washington says it will be the first “AI-native investment acceleration hub” developed under the US-led Pax Silica initiative, a framework aimed at mobilising allied economies around shared industrial and security priorities.

In a statement on Thursday, the US State Department described the zone as “a purpose-built platform for allied manufacturing”, adding that it would support the “evolving needs of the allied network”.

It added that the zone would combine US expertise on contract law, regulation and dispute resolution with the Philippines’ “outstanding workforce and talent”, mineral endowments, energy resources “and strategic position at the crossroads of Indo-Pacific trade”.