US may seek more stakes in strategic companies to counter China, Bessent says
WASHINGTON - The Trump administration will seek to tighten control over strategic sectors by taking more equity stakes in key companies to counter China's economic policies and export restrictions, Treasury Secretary Scott Bessent said on Wednesday.
Bessent told a CNBC event that China's dramatic new restrictions on rare earth minerals and magnets demonstrates the need for the US to be self-sufficient in critical materials or rely more on trusted allies.
"So when you are facing a non-market economy like China, then you have to exercise industrial policy," Bessent said.
Under President Donald Trump, the US has shifted from subsidies to direct stakes in companies including Intel, minerals miner Trilogy Metals and rare earths miner MP Materials.
More stakes are possible for sectors important to US national security, including in rare earths, semiconductors, pharmaceuticals and steel, Bessent said. In rare earths, the administration will also set price floors and strategic stockpiles.
"We're not going to come in and take stakes in non-strategic industries, but we've identified seven industries" to develop domestically, Bessent said. The government had to be "very careful not to overreach" and to ensure that investments were meeting its strategic goals, he added.
Bessent also criticized the practices of some defense contractors, saying the government may have to put more pressure on them to improve performance.
"I do think our defense companies are woefully behind in terms of deliveries, so we may have to, as their biggest customer ... prod them to do a little more research, a little fewer stock buybacks, which is really what got Boeing into trouble," he said.
Article Enquiry
Email Article
Save Article
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
