US Asks Allies to Choose Sides in AI Race

The United States is preparing to ask dozens of countries for a clear stance in the global race to develop artificial intelligence with China. According to an internal draft document reviewed by Reuters and statements from a U.S. official, Washington plans to warn partner countries that they will be excluded from the U.S. AI coalition if they simultaneously join a competing initiative led by Beijing.

The draft letter, prepared by the State Department, has been sent to 35 countries that signed the U.S. AI Opportunity Statement in June. Among them are members of Pax Silica, an initiative launched by the U.S. last year to secure supply chains for semiconductors and critical minerals for its artificial intelligence models, as well as other countries that have expressed a desire to collaborate with Washington in the field of artificial intelligence.

So far, the signatories of Pax Silica include Argentina, Australia, Chile, Costa Rica, El Salvador, Finland, Germany, Greece, India, Israel, Italy, Japan, Kazakhstan, the Netherlands, Norway, Panama, the Philippines, Qatar, South Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom, and the European Union. By pressuring partner countries to choose sides, the U.S. hopes to deprive China of resources in the race to create the most sophisticated artificial intelligence, a technology that could ultimately serve for military or economic dominance.

‘Being part of everything means being part of nothing’

On the other hand, Chinese President Xi Jinping launched the World Organization for AI Cooperation in July. Through this organization, China promotes open-source technology and open models as a challenge to U.S. influence in the AI sector. Kazakhstan is currently the only country that has joined both initiatives, which has raised alarms and reactions in Washington.

The draft U.S. letter calls on countries to consciously choose and emphasizes that ‘being part of everything means being part of nothing’, with signing Pax Silica marked as a commitment, not just a formal accession. The letter also states that participation cannot be maintained alongside membership in other initiatives whose expectations contradict those of the U.S.

Reuters could not determine when the U.S. intends to send the letter or whether the text will be amended, and the State Department declined to comment on internal documents that have come to light. The Chinese embassy in Washington stated that it opposes the politicization of trade and technology issues, as such actions only stifle global progress in artificial intelligence.

Croatia Coordinates All Decisions with the EU

Since the European Commission also signed the Pax Silica Declaration on June 25 on behalf of the EU, we sent an inquiry to the Ministry of Justice, Administration, and Digital Transformation to check Croatia’s stance on the announced U.S. conditioning and what exact obligations arise from it for our country and domestic IT companies.

The Ministry explains that the impact of Pax Silica on Croatia ‘primarily manifests through the joint obligations of EU member states arising from the signing of the declaration itself, but also as part of ongoing European efforts to develop key technologies, strengthen production capacities, and create stable supply chains’.

– The declaration is not binding and does not supersede internal EU regulations but complements existing legislative initiatives, such as the Chips Act 2.0 – emphasize the Ministry of Justice, Administration, and Digital Transformation.

When asked about Croatia’s stance on a potential U.S. ultimatum and the request to choose sides, the Ministry did not comment on China nor did they address the impact on the operations of domestic IT and AI companies, but emphasized that Croatia bases its actions entirely on a common European policy.

– Croatia joined the Pax Silica initiative within the framework of the European Union and bases its actions in this area on national and European priorities. Croatia aligns its foreign policy and economic activities with the policies of the European Union and other member states. In this context, any questions relating to relations with third countries or participation in other international initiatives would be considered in coordination with the institutions of the European Union and member states, taking into account European strategic interests, economic security, and technological sovereignty – say the Ministry.

Regarding compliance with the regulatory framework, the Ministry notes that participation in this international initiative does not affect the application of European laws in any way nor is it contrary to the EU AI Act.

– We do not see a legal collision between Croatia’s participation in the international Pax Silica initiative and the implementation of the AI Act. The AI Act is a legally binding regulation of the European Union that is directly applicable in member states and represents the regulatory framework for the development, marketing, and use of artificial intelligence systems in the EU. Participation in Pax Silica represents a form of international cooperation and does not itself change or affect the obligations arising for Croatia from European Union law. Croatia will therefore carry out its activities within the Pax Silica initiative with full respect for the AI Act and other relevant regulations of the European Union – conclude the Ministry.

For Croatia and the domestic IT and AI sector, this primarily means that signing the declaration does not bring any direct legal restrictions or additional legal burdens at the national level. Moreover, domestic companies will continue to operate according to the rules of the European AI Act, while any potential geopolitical distancing from Chinese technologies will depend solely on the decisions and guidelines set by the EU at a collective level.