U.S. Economic Security and Investment Abroad: Assessing Economic Security Zones

The House Foreign Affairs Committee Republicans held a hearing on July 7, 2026, titled "U.S. Economic Security and Investment Abroad: Assessing Economic Security Zones." The meeting focused on the Trump administration's economic security zones initiative, known as Pax Silica, which aims to build trusted networks of industrial hubs with allied countries to secure critical supply chains in areas such as critical minerals, semiconductors, advanced manufacturing, and digital infrastructure. Witnesses from industry and policy research discussed challenges including political risk, the dominance of China in critical mineral processing, the need for stable governance frameworks, and the importance of coordinated U.S. government support including export credit and development finance. The hearing emphasized the necessity of durable policy tools to attract private investment, the role of commercial diplomacy, and the integration of infrastructure and financing to compete effectively with China’s state-backed economic strategies. Several witnesses highlighted the importance of STEM training for diplomatic staff and the need for enforcement against illicit trade. The committee also discussed the potential for expanding economic security zones in strategic locations such as the Philippines, Africa, and Latin America, and the role of free trade agreements in underpinning these zones. No specific contract awards or procurement decisions were made during the hearing, but the discussion centered on policy and strategic frameworks that could influence future U.S. procurement and investment activities abroad.