The US is rushing the construction of an “economic security zone” inside New Clark City in Tarlac as it scrambles to outpace China in military and industrial production. It aims to break free from what it calls a “hostage” situation under China in the production and market of critical minerals, military technology, and artificial intelligence or AI.

US Undersecretary of State for Economic Affairs Jacob Helberg arrived in the Philippines on May 18 and went to Tarlac to inaugurate the project. With Philippine officials from the Department of Trade and Industry and Bases Conversion and Development Authority, they formally unveiled the marker for the planned 4,000-acre (1,620 hectares) “economic security zone.”

The US considers this eco-security zone the first “AI-native industrial acceleration hub” under Pax Silica. More than 20 large American companies have already signaled plans to invest in it. The zone is exclusive to US companies and its invited allies.

While Philippine officials deny placing the zone under US jurisdiction, it is set to grant American companies “enhanced operational certainty.” This means the Philippines will provide legal guarantees to the billions of dollars in investments and operations of American firms inside the zone. It ensures that companies will not be affected by any “changing policies, bureaucracy, or local unrest in the Philippines.”

Instead of local laws, contracts in the zone will be governed by international standards and processes. These will bypass the “complex regulations” of local agencies. In case of disputes or cases, resolution will not pass through the Philippine court system but through international arbitration mechanisms.

Bagong Alyansang Makabayan strongly condemned the Marcos regime for “selling off” the country’s territory and resources to US imperialism. It called the eco-security zone an enclave separate from national control.

Helberg’s visit “clarifies the real agenda behind the so-called strategic partnership between the US and the Marcos Jr regime,” according to Bayan. “Pax Silica is being packaged as technological progress and economic security, yet it advances a deeper form of foreign domination.”

It added that Marcos is placing vast Philippine lands at the service of US interests through the Luzon Economic Corridor, along with critical industries and national policy in geopolitics and the military.

The Kilusang Magbubukid ng Pilipinas also warned that this eco-security zone and the accompanying mineral agreements will accelerate foreign control over the country’s natural resources.

“The Marcos government is offering up our land, labor, and mineral wealth to feed US war production and corporate interests,” it said. “Instead of building genuine Filipino industries, the country will once again be reduced to a source of raw materials and cheap labor.”