The United States is considering taking direct stakes in key rare earth companies to safeguard national security and reduce reliance on China amid rising tensions over critical mineral supplies. Treasury Secretary Scott Bessent said the move aims to ensure self-sufficiency in essential materials and strengthen supply chains with trusted allies.
Bessent described China’s recent export restrictions on rare earth minerals and magnets as an attempt to control global supply chains, calling it “China versus the world.” He emphasized that Washington and its allies would not allow Beijing to dictate access to strategic resources vital for industries such as defense, electronics, and automotive manufacturing.
The Trump administration has already begun shifting from subsidies to equity stakes in strategically important companies, including those in rare earths, semiconductors, pharmaceuticals, and steel. Bessent noted that the government would establish price floors and build strategic stockpiles to stabilize supply.
Beijing’s new export curbs prompted Trump to threaten tariffs of up to 100% on Chinese goods starting November 1. While Bessent reaffirmed that the US does not seek a full economic decoupling from China, he warned that continued disruptions could force Washington to act decisively to secure critical resources.
