Wednesday, May 20, 2026
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US, PH reframe Luzon economic security zone

The United States and the Philippines are reframing their planned Economic Security Zone in New Clark City as a live pilot for jointly operating and governing critical supply chains, shifting it from a conventional ecozone development into a test bed for a new allied economic security operating model.

The move was highlighted during the visit of US State Department senior advisor Jacob Helberg to New Clark City on May 18, 2026, where US and Philippine officials discussed the next phase of the initiative and its transition from planning to a more operational framework.

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“This is the site of a planned Economic Security Zone to fuse the predictability and certainty of American law with the speed and scale of Asia. We are committed to pursuing this objective in our own distinctly American way, which will be sharply different than China’s Belt and Road Initiative,” Helberg said.

Rather than functioning solely as a traditional special economic zone, the project is being designed as a working platform where both countries can align investment rules, regulatory processes and supply chain coordination in real time with participating firms.

Helberg said that global supply chains have become structurally vulnerable due to overconcentration of key inputs, noting that “when ninety percent of a critical input comes from one country, you do not have a supply chain. You have a hostage chain.”

The New Clark City initiative seeks to address these risks by building an integrated operating environment where governance and industrial execution are designed together rather than layered separately. The goal is to improve reliability and continuity for firms operating in strategic sectors such as artificial intelligence, semiconductors and advanced manufacturing.

Helberg said the effort reflects a broader shift in approach, noting that economic security is now being treated as something to be built and tested rather than simply declared in policy.

“In January, I said the State Department would treat economic security as a product to be built, not a policy to be announced. Today, we are here to see the first such product come into being,” he said.

Under the pilot framework, US and Philippine agencies are expected to coordinate more closely on permitting, compliance and supply chain governance, effectively building a shared operating system for investors and manufacturers rather than separate regulatory tracks.

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