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US plans $500m fund to rival China tech
US senators Jeanne Shaheen and Pete Ricketts plan to introduce a bill on May 20 to create a US State Department office focused on expanding access to American AI and technology overseas.
The proposal also includes a US$500 million fund to help allied governments purchase US technology as Washington seeks to counter Chinese tech sales abroad.
The proposal would also streamline foreign procurement of US AI models, chips, and related software and hardware.
It would further support purchases of telecoms, cybersecurity, biotechnology, and cloud systems while backing the Trump administration’s Pax Silica initiative to reduce reliance on China in AI supply chains.
The bill comes as China spent a record US$213 billion on its Belt and Road program in 2025, according to Griffith University and the Green Finance and Development Center in Shanghai.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
The proposed fund builds on an existing global tech effort
- The bill backs the Trump administration’s “Pax Silica” program, run by the U.S. State Department to work with allies and trusted partners on AI and supply chain security 1.
- At the first Pax Silica Summit, officials joined from Japan, South Korea, and Singapore. Others came from the Netherlands, the United Kingdom, and Israel. Australia and the United Arab Emirates also took part. Taiwan and Canada joined as guests. The European Union also attended. So did the Organisation for Economic Co-operation and Development (OECD), an international policy group of mostly advanced economies 2.
- The proposed US$500 million fund would stand apart from the State Department’s plan to direct US$250 million in foreign assistance through a new Pax Silica Fund. That separate plan covers critical minerals extraction and processing. It also covers critical infrastructure plus manufacturing assets 1.
This bill speeds up a split tech market and raises the stakes for global buyers
- Moves like this deepen a split tech market. One bloc lines up with the U.S. Another centers on China. Each side carries its own standards and compliance rules 3.
- That pressure reaches other large economies. The European Union has not signed the Pax Silica declaration and is not treated as a full member of the framework 3.
- The bill seeks to lift sales to allied governments. It also fits a wider plan to curb sales in other markets. Related export controls could strip U.S. chipmakers of US$50 billion a year in sales to China 4.
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