U.S. to Expand Equity Stakes in Strategic Industries

WASHINGTON — U.S. Treasury Secretary Scott Bessent said the Trump administration will expand direct government equity stakes in strategic companies to counter China’s restrictive controls on critical materials and other non-market behavior.
Bessent said China’s recent curbs on rare earths and magnets underscore the need for U.S. self-sufficiency and closer coordination with trusted allies. Policy tools under consideration include price floors and strategic stockpiles for rare earths, alongside targeted investments.
The administration has already taken stakes in companies such as Intel, Trilogy Metals and MP Materials and is weighing further ownership in sectors tied to national security, including rare earths, semiconductors, pharmaceuticals and steel. Officials say investments will be focused on seven identified industries and calibrated to avoid overreach while meeting strategic objectives.
Bessent also criticized defense contractors for weak delivery performance, indicating the government may press suppliers to prioritize research and production over share buybacks. The approach represents a shift from subsidies to active ownership and market-shaping measures designed to secure supply chains and critical technological capacity.