By Tripti Lahiri and Shan Li
NEW DELHI -- The U.S. on Friday welcomed India as the newest member of Pax Silica, a group of nations that aims to counter China's influence in new technology and artificial intelligence.
U.S. and Indian officials didn't mention China by name when announcing India's inclusion in the bloc. But they pointed to Beijing's efforts to weaponize its dominance in rare earths and other supply chains as major pressures in a tech world already dealing with heavy demand from AI.
"China instated export controls on the rest of the world in a way that has been completely unacceptable," said Jacob Helberg, a State Department official for economic affairs, in an interview.
The bloc isn't just about China, though, said Helberg, who was visiting New Delhi for an AI conference hosted by India and aimed at promoting technology access for developing economies. The group seeks to prepare for the AI era and make sure global AI regulation doesn't become stifling, he said.
"We're living through a technological revolution," said Helberg. "We're seeing record demands for high-bandwidth memory, we're seeing record demands for GPUs, record demand for...all of the different building blocks that go into producing intelligence."
The U.S. and India pledged in a related agreement to take a pro-business approach to the regulation of AI.
The inclusion of India in the pact furthers an upturn in U.S.-India ties, which unraveled last year after President Trump complained about India's protectionism and large purchases of Russian oil. He slapped an additional 50% tariff on India in August, among the highest levied on major trade partners last year.
This month, however, Trump announced a trade deal with India after its purchases of Russian oil declined following U.S. sanctions on key Russian state oil firms. The deal has already removed a 25% tariff Trump had placed on India, and the remaining 25% tariff is set to be brought down to 18% in coming days.
Analysts say the Trump administration is rewinding the clock on U.S.-India ties to where they stood before, when the Biden administration was billing India as a strategic partner to counter China.
"They are going to try and pretend nothing happened for a year and carry on," said Sreeram Chaulia, dean at O.P. Jindal Global University's School of International Affairs. "That's necessary because continuity is key."
India's decision to join Pax Silica is also driven by the country's troubles securing rare earths and magnets from China, said Chaulia.
S. Krishnan, a senior Indian technology official, said India wanted to work with countries that shared its values and "ensure that we do not become enslaved or do not become tied down to just one dependence."
Including India, 10 nations have signed up to Pax Silica, which was announced in December.
The list includes longstanding U.S. friends and partners such as Japan, South Korea, Israel and the United Arab Emirates.
A Biden plan that was due to take effect last year would have limited India's access to the highest-end chips, diminishing its attraction for big AI investments. After the Trump administration overhauled the plan, India has become a hot spot for U.S. tech investment.
In October, Google announced a $15 billion investment in data centers in southeastern India, as well as undersea-cable links. In December, Microsoft unveiled its largest-ever investment in Asia with a $17.5 billion pledge to develop India's cloud and AI infrastructure.
"Our grouping is focused on the supply side of the ledger," said Helberg. "India is the only country on Earth that really provides a real alternative -- in terms of the depth of its human capital and the scale of its market -- to China."
Write to Tripti Lahiri at tripti.lahiri@wsj.com and Shan Li at shan.li@wsj.com
(END) Dow Jones Newswires
February 20, 2026 09:19 ET (14:19 GMT)
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