Draft US Letter Tells 35 Partners to Pick an AI Coalition
United States · GEOPOLITICS
Key Facts
—Draft State Department letter: Reuters reported on 14 August 2026 that it reviewed an undated State Department draft letter. The unsent draft tells 35 partner countries to pick one artificial intelligence (AI) grouping.
—Exclusion threat: The draft says countries joining a rival grouping would be excluded from the US-led AI coalition. It names no chip or cloud penalty.
—Brazil’s position: Brazil was a founding member of China’s new AI body, WAICO, on 16 July 2026. It signed no US AI statement.
—Telecom dominance: Huawei alone installed about 70% of Africa’s 4G networks. That estimate comes from Berlin’s Mercator Institute for China Studies, published in 2019.
—US response: Washington pledged over US$350 million and said it would help arrange over US$450 million more for African digital projects.
—Youth demographic: Africa’s youth population is projected to account for about 42% of the world’s youth by 2030.
Reuters says it reviewed an unsent US draft letter telling 35 partner countries to pick a side on AI. The draft threatens exclusion from a US-led AI coalition.
Washington’s ultimatum on the AI coalition
Reuters reported on 14 August 2026 that it reviewed an undated State Department draft letter to 35 governments. Those governments signed the US-backed Joint Statement on AI Opportunity on 25 June 2026.
The draft says signing the Pax Silica Declaration is “not merely a membership subscription, but a commitment”. It adds: “To be part of everything is to be part of nothing.”
The draft says the commitment “cannot be held alongside membership in duplicative initiatives whose expectations conflict with our own”. It is undated, unsent, and the State Department declined to comment.
The draft names neither China nor the World Artificial Intelligence Cooperation Organization, or WAICO. Reuters reported that the wording points to WAICO, which China launched in Shanghai on 16 July 2026.
The draft’s only stated penalty is exclusion from the US-led AI coalition. It lists no loss of chips, cloud services, models or minerals.
The chip-control architecture behind the AI race with China
In January 2025 Washington issued the Framework for Artificial Intelligence Diffusion, which sorted the world into three chip-access tiers. The Commerce Department rescinded that rule on 13 May 2025.
That rescinded rule would have capped how much AI computing power US cloud firms could install abroad. The limits were 50% outside the United States, 25% outside tier-one allies, and 7% in any single other country.
Its stated goal was to keep advanced chips away from China’s military.
Where Latin America stands
Six Latin American countries signed the June statement: Argentina, Chile, Costa Rica, El Salvador, Panama and Paraguay. All but Paraguay also signed the Pax Silica Declaration.
Brazil is on the other side of the line. It was a founding member of China’s WAICO on 16 July 2026 and signed neither US document.
That splits Mercosur. Argentina and Chile sit inside the US coalition while Brazil sits inside China’s.
The split bears on data-centre siting, cloud purchases and 5G vendor choice.
Chile, Brazil and Argentina also hold the lithium, copper and rare earths that Pax Silica covers under minerals refining. Kazakhstan is the only country so far in both camps.
Neither Beijing nor any of the 35 governments had responded publicly as of 17 August 2026.
Africa as the new AI battleground
Africa is not a party to the June statement, but it sits at the centre of the wider contest. Its youth, minerals and new networks are the draw.
China has spent two decades building its footprint. Huawei alone installed about 70% of Africa’s 4G networks, Berlin’s Mercator Institute for China Studies found in 2019.
Washington has responded with its own push. Under Digital Transformation with Africa it pledged over US$350 million and promised to help arrange over US$450 million in financing.
This contest over infrastructure, standards and data rules runs through Africa: The New Scramble.
The risk of digital colonisation
In May 2019 Washington blacklisted Huawei, and Google then cut the firm off from Android services. That showed how fast geopolitics can reach consumer devices.
In April 2024 China’s Cyberspace Administration pushed for a China-Africa AI policy at a summit in Xiamen. That same month Gina Raimondo, then US Commerce Secretary, signed a non-binding AI statement with Kenya.
What the AI race with China means for African governments
No African government signed the US statement, so none will receive this draft letter. African states that join WAICO would still sit outside the US-led coalition.
Governments will face pressure to decide which AI governance club they join.
The choices run across cloud partnerships, 5G vendors and regulatory templates. Kenya, South Africa and Mozambique are WAICO founding members.
Local African firms could see new openings as regional hubs for data centres and AI services. That could also lock in dependencies and limit cross-border interoperability.
Frequently Asked Questions
What is the US asking its allies to do in the AI race with China?
Reuters says it reviewed an unsent State Department draft letter to 35 partner countries. It asks them to choose between the US-led AI coalition and China’s rival grouping.
Who built Africa’s 4G networks?
Huawei alone installed about 70% of Africa’s 4G networks, Berlin’s Mercator Institute for China Studies reported in 2019. Chinese firms also lead many 5G rollouts on the continent.
What happens to countries that join China’s AI framework?
The draft says they would be excluded from the US-led AI coalition. It sets out no penalty on chips, cloud services or minerals.
Connected Coverage
For deeper analysis of how great-power competition is reshaping Africa’s digital and mineral landscape, read Africa: The New Scramble.
Sources
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