Pax Silica Offers Opportunity But Raises Questions For Bangladesh

(MENAFN- IANS) New Delhi, Sep 12 (IANS) Bangladesh is facing a critical strategic decision after receiving an invitation from the United States-led Pax Silica initiative while simultaneously joining the China-backed World Artificial Intelligence Cooperation Organization (WAICO) as an observer which highlighting the country's growing importance in the global technology landscape, according to a report.

As per analysis by The Diplomat, US Envoy Sergio Gor recently indicated that Bangladesh could become a partner in Pax Silica, a technology and economic security alliance focused on artificial intelligence, semiconductors and critical mineral supply chains.

The proposal came as the country announced its observer status in WAICO, placing the country between two competing technology ecosystems, it added.

Launched in the US in December 2025, Pax Silica seeks to build secure supply chains spanning critical minerals, semiconductors, AI infrastructure, advanced manufacturing and digital platforms.

The grouping which includes countries such as the United States, United Kingdom, Japan, Singapore and India, aims to reduce dependence on vulnerable technology supply chains and expand trusted partnerships.

For the country, the initiative presents an opportunity to diversify an economy still heavily dependent on garment exports.

“Bangladesh's current capabilities remain far below the level required to bargain as an equal partner. Semiconductor exports of $8 million are tiny beside the announced $1 billion target for 2030,” according to the report.

Moreover, Bangladesh's infrastructure and technological capabilities remain limited.

Challenges including unreliable power supply, insufficient research capacity, weak industrial ecosystems and regulatory constraints could limit the country's ability to benefit fully from such partnerships.

There are also concerns that joining either technology bloc could affect Bangladesh's strategic autonomy.

China remains the country's largest source of imports and a major investor in infrastructure, while closer alignment with the US-led initiative could bring expectations regarding technology standards, supply chains and vendor choices.

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