President Donald Trump‘China’s government is likely to take stakes in more companies as a result of China’s latest rare earth export restrictions,’ says finance minister Scott Bessant said Wednesday.
Bersent told CNBC said it “wouldn’t be surprised” if the US bought shares in other companies, but only in strategic sectors.
“When we get an announcement like this week with China on the rare earths, you realize we have to be self-sufficient, or we have to be sufficient with our allies,” Bessent said.
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The Trump administration has already taken stakes MP Materials Corp. (NYSE: MP), Trilogy Metals, Inc. (NYSE:TMQ) and Lithium America Corp. (NYSE:LAC) – and according to Bessent, more could follow.
Price floors
Bessent said the government also plans to introduce price floors in multiple sectors to counter Chinese market manipulation.
He explained that over the past two decades, China has pushed global rivals out of the rare earths industry by exploiting its dominance in refining and processing to undercut prices.
“When you deal with a non-market economy like China, you have to have an industrial policy,” Bessent said.
“So we’re going to set price floors and forward purchasing to make sure this doesn’t happen again, and we’re going to do this across a whole range of sectors,” the finance minister added.
Strategic reserve
The US should also build a strategic reserve of crucial minerals, Bessent noted, adding JPMorgan Chase & Co. (NYSE:JPM) has expressed interest in working with the government in this area.
On Monday, JPMorgan announced a $1.5 trillion initiative to invest in industries critical to U.S. national and technological security.
JPMorgan said it will focus on four key areas – with critical minerals listed first – and support companies by providing advice, financing and investing capital.
“Our security is based on the strength and resilience of the American economy. America needs more speed and investment,” said the JPMorgan CEO. Jamie Dimon said in a statement.
Rare earth metals
Rare earth metals and critical mineral reserves, such as Critical Metals Corp. (NASDAQ:CRML) and USA Rare Earth, Inc. (NASDAQ:USAR) retreated on Wednesday after rallying on high volume over the past few sessions.
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