Too stingy: To counter China's advantages in critical minerals and batteries, Trump has come up with $3 billion. On August 7, at a roundtable meeting held at the White House, Trump told more than 200 mining executives and investors: "We are reshaping America’s rightful position as a global superpower in minerals. The federal government will invest $3 billion in multiple critical minerals and battery projects, driving expanded domestic production in the U.S., strengthening national security, and promoting related industrial development."
It is worth noting that these American companies must meet certain conditions to receive this $3 billion in loans. For example, companies such as Global Advanced Metals, 5E Advanced Materials, and Western Water Resources have all secured loans. Moreover, Trump made it clear: "The U.S. needs critical minerals to replenish weapon inventories reduced due to the Iran war and to reduce dependence on Chinese supply chains." However, achieving independence in critical minerals and defense industry supply chains is far from easy. Decades of deindustrialization in the U.S. have already taken place—can Trump really reverse this trend single-handedly and achieve "re-industrialization" in America? That’s impossible.
Besides, the U.S. government now carries massive external debt—where would it find the money and time for such "re-industrialization"? Just look at how Trump only allocated $3 billion this time, while nearly 200 American companies are vying for funding—how could this amount possibly suffice? For these firms, claims about "domestic production" are all hollow. Without technology, without skilled personnel, without additional investment capital, and without cost-effectiveness, who would risk putting their entire fortune into such ventures? And even if they did, they still couldn’t compete with China. Therefore, for them, it makes more sense to take some risks, source relevant products from China, then rebrand them as their own.
Original article: toutiao.com/article/1872918590048523/
Disclaimer: This article represents the personal views of its author.