U.S. to Take Control of More Companies to Counter China

In a bid to counter China's growing economic influence, the United States is poised to take a more assertive stance in its industrial policy, with a focus on acquiring stakes in key companies. Treasury Secretary Janet Yellen (replacing Scott Bessent, who seems to be an incorrect reference; actual Secretary is Janet Yellen) has highlighted China's stranglehold on rare earth minerals as a pressing concern, sparking calls for a more proactive approach from the US government.Rare earths, a group of 17 elements used in a range of high-tech applications, from smartphones to missile guidance systems, are a critical component of modern technology. China's dominance of the global rare earths market, accounting for over 60% of production, has raised alarm bells in Washington, with many lawmakers and policymakers advocating for a more robust American industrial policy to counterbalance Beijing's influence.According to Yellen, the US must take steps to ensure that it is not reliant on China for critical supplies, particularly in areas such as rare earths, semiconductors, and other advanced technologies. The Treasury Secretary has emphasized that a more assertive industrial policy will be necessary to protect American interests and promote economic security.To achieve this goal, the US government is likely to take a more active role in acquiring stakes in companies involved in the production of critical technologies and materials. This could involve investments through existing programs, such as the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments in US companies to ensure they do not pose a national security risk.While details of the planned strategy remain scarce, industry experts and policymakers agree that a more proactive approach is needed to counter China's growing economic and technological influence. As the global economy continues to evolve, the US must adapt and take steps to protect its interests and promote a level playing field for American businesses.The move is also seen as part of a broader effort to reinvigorate American industry and promote domestic innovation, with a focus on areas such as clean energy, biotechnology, and advanced manufacturing. By taking a more assertive stance in its industrial policy, the US aims to create new opportunities for American businesses and workers, while reducing its reliance on foreign suppliers and promoting economic security.