US Treasury Secretary Reveals Government's Increased Direct Control Over Domestic Enterprises
On October 15th, local time, US Treasury Secretary Bessenet disclosed this intention again at a forum. He revealed that the Trump administration is seeking to respond to China's new economic measures by strengthening control over enterprises in key strategic sectors of the United States.
Analysts pointed out that this approach marks the entry of the United States into a new era of industrial policy, which contrasts sharply with the traditional concept of "free market" and "open investment" favored by policymakers.
The Trump administration has invested in several key enterprises, including US Steel, Intel, rare earth mining company MP Materials, and Trilogy Metals. At the same time, it also requires taking a share from the chip sales revenue of NVIDIA and AMD in China.
Bessenet said establishing a "strategic mineral reserve" is a priority, and he mentioned that JPMorgan Chase is interested in cooperating with the government.
The US Department of Defense agreed to invest $400 million in July, becoming the largest shareholder of MP Materials, which operates the only currently operating rare earth mine in the United States. The Trump administration will provide strong support for this business, including setting a 10-year price floor for the company's magnet materials.
Western industry insiders said that the US government's investment in MP Materials indicates that the US government is willing to break the "free market" concept and emulate the Chinese model when necessary to counter China.
The US Department of Defense has also reached another agreement to invest in Canadian mining company Trilogy Metals, which holds mining rights in Alaska.
"From acquiring shares in Intel to seeking to invest in Lithium Americas, the Trump administration is drawing on China's industrial policies," the Hong Kong English media South China Morning Post noted earlier. It also observed that the US government is increasingly wielding the "visible hand" of the government within its own so-called "free market", a strategy that was once closely associated with China.
"I think the US government is trying to learn from China's experience," said Brian Wong, a researcher at the Center for Contemporary China and World Studies at the University of Hong Kong.
Rajiv Biswas, CEO of Asia-Pacific Economics, also agreed that the recent actions of the US government highlight a policy orientation moving towards "interventionism".
Analysts said that the Trump administration's recent embrace of industrial policy reveals a rising concern about the fragility of global supply chains. However, the United States has not implemented industrial policy for more than 40 years and may no longer know how to do so.
Original: www.toutiao.com/article/1846107730069513/
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