The Philippines becomes the 13th member of Pax Silica, a programme designed to safeguard the full spectrum of the technology supply chain, including critical minerals, advanced manufacturing, computing and data infrastructure.

The initiative forms part of the Trump administration’s broader economic strategy to reduce reliance on rival nations and deepen coordination among allied partners. Other participating countries include Australia, Finland, India, Qatar, South Korea and Singapore.

The planned industrial hub will be located within the Luzon Economic Corridor, a key economic zone encompassing Manila and surrounding regions with established manufacturing capacity. The Philippines, Japan and the United States have also committed to increasing infrastructure investment in the corridor under a trilateral framework agreement.

“It is intended to serve as a staging point for a purpose-built platform for allied manufacturing,” the State Department said, adding that both countries aim to reinforce supply chains across semiconductors, electronics and other critical sectors.

The project underscores strengthening ties between Manila and Washington under President Ferdinand Marcos Jr., who has moved to deepen cooperation with the United States.

The Philippines, a former U.S. colony, has also taken on strategic importance in Washington’s efforts to counter China’s assertiveness in the South China Sea.

The benchmark KOSPI index has recovered nearly all of last month’s 19% decline, regaining momentum after being one of the world’s top-performing major indices last year. The rebound has been supported by renewed foreign inflows, with $4.2 billion returning to equities in April after record outflows of $23.8 billion in March, according to LSEG data.

Investor interest has been driven in part by the global surge in demand for high-bandwidth memory used in data centres, benefiting major South Korean chipmakers such as Samsung Electronics. Market participants said the March correction created attractive entry points, prompting portfolio reallocations into Korean technology stocks.

“We’re cautiously optimistic, but we think it’s a megatrend,” said Isaac Thong, senior investment director for Asian equities at Aberdeen Investments, referring to the long-term growth potential of AI-linked semiconductor demand.Despite the recovery, the recent market turmoil has exposed structural vulnerabilities.

South Korea’s equity market remains heavily concentrated in a small number of AI-linked firms, amplifying swings during periods of global uncertainty. Since the onset of the Iran war, the KOSPI has experienced sharp daily fluctuations, including declines of up to 12% and gains of 9%, outpacing volatility seen in other Asian and U.S. markets.

The South Korean won has remained near 17-year lows against the U.S. dollar, increasing the cost of energy imports and complicating policy responses. Authorities face a balancing act as measures to support growth risk fuelling inflation, particularly in an economy highly dependent on imported energy.

Government efforts to address the so-called “Korea discount” through corporate governance reforms have begun to attract activist investors, aiming to narrow valuation gaps linked to longstanding concerns over transparency and shareholder rights within family-run conglomerates.While equities have been volatile, South Korea’s bond market has shown resilience.

Companies raised $74.7 billion in the first quarter, maintaining strong issuance levels, while the benchmark 10-year government bond yield has declined this month to its lowest level since February.

Prospects for sovereign debt have improved further with anticipated inclusion in FTSE’s World Government Bond Index, prompting early inflows from major institutional investors including Japan’s Government Pension Investment Fund, alongside interest from global asset managers such as Goldman Sachs Asset Management and Principal Global Investors.

Analysts estimate that index inclusion could drive between $50 billion and $70 billion in passive fund inflows, reinforcing demand for Korean bonds even as equity markets remain sensitive to external shocks.

However, continued weakness in the won remains a key concern for global investors, with capital outflows and safe-haven demand for the dollar keeping the currency near levels last seen during past financial crises.

Authorities have responded with verbal interventions and strategic hedging operations by the state pension fund to stabilise the currency.

The meeting, held at the Great Hall of the People, comes as Beijing increases military and political pressure on Taiwan, which it claims as its territory. Cheng is visiting China on what she described as a “peace mission” aimed at reducing tensions.

Xi reiterated Beijing’s long-standing “One China” position, stating that both sides of the Taiwan Strait belong to one nation and calling Taiwan independence the “chief culprit” undermining regional stability.

He urged collaboration between China’s Communist Party and Taiwan’s opposition Kuomintang to promote national reunification.Cheng said she hoped to foster mutually beneficial relations and expand exchanges, adding that dialogue could help prevent the Taiwan Strait from becoming a flashpoint for international conflict.

Taiwan’s government rejected Beijing’s stance, with top policymaker Chiu Chui-cheng saying only Taiwan’s people could determine the island’s future and calling on China to engage with its democratically elected leadership.

Beijing has refused to hold talks with President Lai Ching-te, labeling him a separatist. The current divide traces back to 1949, when rival governments split after China’s civil war, with each side maintaining separate political systems.

Cheng, chair of the Kuomintang (KMT), is scheduled to visit China from April 7 to 12 and may meet Xi Jinping, though Beijing has not confirmed such talks. Speaking before departure in Taipei, she said the trip aimed to reduce tensions and prevent conflict, calling it a “historic journey for peace.

”The visit comes amid heightened military pressure from China, which views democratically governed Taiwan as its own territory and has not ruled out the use of force to assert control. Beijing has also refused formal engagement with Taiwan’s President Lai Ching-te, labeling him a separatist.

Taiwanese officials said Chinese naval activity around the island remains elevated. Kuan Bi-ling reported multiple warships positioned off Taiwan’s coasts, including deployments to the east, north, northwest and southwest, underscoring what authorities described as sustained military pressure.

Separately, Chiu Chui-cheng urged Beijing to engage with Taiwan’s elected government and called on Cheng to press Chinese authorities to halt military activities, including air and naval operations near the island.

The trip takes place ahead of a planned summit between U.S. President Donald Trump and Xi in Beijing, where Taiwan is expected to feature among key issues alongside trade.Cheng’s itinerary includes stops in Shanghai and Nanjing, where she is expected to visit the mausoleum of Sun Yat-sen, founder of the Republic of China.

The visit marks the first by a KMT leader to China in a decade, reflecting renewed political outreach despite ongoing cross-strait tensions.

Curtis, speaking alongside fellow lawmakers including Jeanne Shaheen, said Taiwan should draw lessons from Hong Kong, where Beijing imposed a sweeping national security law in 2020 following unrest, a move critics say curtailed freedoms.

The visit comes as President Lai Ching-te seeks approval for an additional $40 billion in defence spending, a proposal backed by Washington but currently stalled in the opposition-controlled parliament.

Taiwan’s government says the funding is necessary to strengthen deterrence against China, which claims the island as its territory. Opposition parties have expressed support in principle for defence measures but have resisted approving what they describe as open-ended commitments.

Curtis said Taiwan risked misjudging Beijing’s intentions if it ignored the trajectory of Hong Kong since its return to Chinese rule in 1997 under a framework guaranteeing autonomy.“My biggest worry for Taiwan is that they underestimate the intentions of China,” Curtis said, urging vigilance despite aspirations for peace.

China has simultaneously stepped up engagement with Taiwan’s opposition. Beijing has invited Cheng Li-wun, leader of the Kuomintang, to visit, a trip she has described as a “peace mission.”

Taiwan’s Mainland Affairs Council said China’s objective of annexation had not changed and cautioned against what it called “illusions” about peace, reflecting ongoing tensions across the Taiwan Strait.

In a statement released late on Saturday, the ministry’s Hong Kong office said Commissioner Cui Jianchun met U.S. Consul General Julie Eadeh on March 27 and conveyed “strong dissatisfaction and firm opposition” to the alert, calling on the United States to stop intervening in Hong Kong matters “in any form.

”The dispute follows recent amendments to Hong Kong’s national security enforcement rules, which make it an offence in national security cases to refuse to provide passwords or other assistance to access electronic devices.

In response, the U.S. Consulate General in Hong Kong issued a public alert on March 26 advising U.S. citizens to contact the consulate if they are arrested or detained in connection with the updated rules.

The alert highlighted concerns over the expanded scope of enforcement powers under the revised framework.The U.S. Consulate General did not immediately respond to a request for comment outside business hours.

The exchange underscores ongoing tensions between Beijing and Washington over Hong Kong’s governance and legal environment, particularly since the introduction of national security measures that foreign governments have said could affect civil liberties and legal protections.

Chinese authorities have consistently defended the measures as necessary to safeguard stability and national sovereignty, rejecting external criticism as unwarranted interference.

An individual claiming to be an active-duty officer of the Japan Self-Defense Forces scaled a wall and entered the Chinese Embassy in Tokyo earlier in the day, Chinese foreign ministry spokesperson Lin Jian said at a regular press briefing.

Lin said the individual admitted the act was illegal and threatened to kill Chinese diplomatic personnel “in the name of God,” prompting what Beijing described as shock and concern over the safety of its staff.

China called on Japan to conduct a thorough investigation, hold those responsible accountable and ensure the security of Chinese embassies and consulates.

JJapan’s defence ministry did not immediately respond to requests for comment regarding the incident or the alleged affiliation of the individual involved.

The incident comes against a backdrop of deteriorating relations between China and Japan. Tensions have risen since Japanese Prime Minister Sanae Takaichi suggested that a potential Chinese attack on Taiwan could prompt a military response from Tokyo.

Japan is also expected to downgrade its description of bilateral ties in an upcoming diplomatic report, citing a series of confrontations over the past year, while Beijing has reiterated calls for Tokyo to withdraw what it views as provocative remarks.

Speaking at the National Press Club in Canberra, Birol said the agency would assess market conditions before deciding on further action, after member countries agreed on March 11 to release a record 400 million barrels from strategic reserves to ease surging crude prices.

“If it is necessary, of course, we will do it,” Birol said, adding there was no fixed price threshold that would automatically trigger another coordinated release. He cautioned that stock drawdowns could help stabilise markets but would not resolve underlying supply constraints.

Birol said the Asia-Pacific region was at the forefront of the crisis due to its reliance on energy and critical commodities shipped through the Strait of Hormuz, a key maritime corridor affected by the conflict.

He described the current situation in the Middle East as “very severe,” saying its impact exceeded that of the 1970s oil shocks and the gas market fallout from the Russia-Ukraine war combined.

According to Birol, the conflict has removed around 11 million barrels per day from global oil supply, intensifying pressure on economies dependent on imports.“The single most important solution to this problem is opening the Hormuz Strait,” he said.

Birol said stock releases represented only one element of the agency’s response, pointing to demand-side measures such as reduced speed limits and increased remote working to curb fuel consumption.

He noted similar steps had helped lower energy use in Europe in 2022, though implementation would depend on national policy decisions.

“The depth of the problem was not well appreciated by decision makers around the world,” Birol said, explaining his decision to speak publicly weeks into the conflict.

During his visit, Birol met Australian Prime Minister Anthony Albanese and reviewed the country’s fuel preparedness. While noting that Australia’s overall liquid fuel reserves remain below IEA requirements, he said recent efforts had improved resilience.

He described Australia’s diesel reserves, currently at around 30 days, as “a solid number” in the current environment.

Birol is scheduled to travel to Japan later this week ahead of a Group of Seven meeting, where energy security and coordinated responses to the supply shock are expected to be discussed.