Under Trump, U.S. an active investor at scale not seen outside major crises
2025-07-26 11:29:46
The Trump administration has taken direct stakes in companies on a scale that was rarely seen in the United States outside the war or economic crisis, prompting a Republican party, which traditionally defended the capital of the free market to embrace the state’s interference in industries that are important for national security.
Nippon Steel in Japan has agreed to grant President Donald Trump a “golden session” in the United States Steel as a condition for the integration of the controversial companies. Trump is now personally Overwhelming veto On the main commercial decisions made by the nation The third largest steel product.
“You know who has a golden share? I do,” Trump said at a summit about intelligence and artificial energy in Pittsburg on July 15.
A research tank focuses on international affairs, said the golden share of the president in the United States is similar to the nationalization of a company, but without any of the benefits that the company usually receives, such as direct investment by the government.
But the Trump administration showed earlier this month that it is also ready to buy directly to the companies circulating publicly. The Ministry of Defense agreed to buy a A share of royal rights of $ 400 million In a rare mine worker MP materialsWhich makes the Pentagon the largest contributor to the company.
Grassillin Baskran, an expert in critical minerals at the Center for Strategic and International Studies, said this level of support by the federal government of an unprecedented mining company.
“This is the largest cooperation between the public and private sectors that the mining industry was here in the United States,” Paskran said. “Historically, the shares of the shares of a mining company or a mining project did not do.”
Danzmann said that Trump’s unique seizure of the Republican Party gives him the ability to interfere in companies on a scale that is politically difficult for a democratic president.
“It was important that the Democrats were accused of being Communist, and perhaps many other Republicans were not comfortable in this particular direction because of their greatest commitment to the principles of the market,” Danzmann said. She said that Trump expands the scope of what is possible in the United States in terms of state intervention in the markets.
The White House did not immediately respond to a request for comment.
It is possible that you will invest more state investments
There can be more interventions on the horizon as the Trump administration is developing a policy to support American companies in strategic industries against state -backed competition from China.
Interior Minister Doug Burgum He said in April The US government may need to “invest stocks in each of these companies that deal with China in critical minerals.” CEO James Littsky said that the Pentagon investing in MP materials is a model for public and private partnerships in the future.
“It is a new way to move forward in speeding up free markets, to get the supply chain on the beach that we want,” Latensky told CNBC. The CEO said that the United States government helps the mining industry fighting “Chinese trade.”
Meanwhile, the Golden Class in the United States Steel is a possible model for foreign direct investment “transactions that really affect our national security, but as it will be great for our economic development,” Senator Dave McC Corcmond, R-PA, said in an interview in May with CNBC.
“After they took a stake in the United States Steel and a deputy, we are now left wondering about the place where this administration will find its upcoming investments,” wrote Don Bilson, an analyst at Gordon Haskit, in a note to customers earlier this month.
Trump suggested in January that the United States should Take 50 % stake In the social media application Tiktok as part of a joint venture. China is required by a recently passed law to strip Tiktok or be the platform It is banned in the United States Trump extended the deadline for Pitains until September 17.
Last precedent
Mark Wilson, historian of North Carolina University, Charlotte, who studies the military industrial complex, said that the United States has a long history of intervention in industries, especially with regard to national defense.
But previous interventions were often temporary and usually occurred during the war, or the economic crisis or took the form of rescue operations to prevent a major player in a critical banking industry.
The United States government bought the majority stake in General Motors to prevent the collapse of the auto industry in the wake of the 2008 financial crisis, in the end. Sell their shares In a loss of taxpayers. In the 1970s, the defense giant Lockheed and car maker Chrysler received government Rescue operations.
During the First World War, President Woodro Wilson RailwayBut he brought them back to private ownership after the conflict. The Roosevelt administration made comprehensive interventions during the Great Depression and the Second World War, from the establishment Tennessee Valley Authority To overcome large investments in the country’s manufacturing ability.
China waved on the horizon
Wilson of UNC said that the United States is not fighting an economic crisis or today’s war, but the return of competition in the superpower with Russia and China and the supply chain disturbances in the Covid-19s have led to more national economic policies.
Danzmann said that the United States has increasingly recognized that the Chinese economic model depends on the manufacture of excessive manufacturing that draws products “on global markets in ways that make it difficult for other competing markets.”
Paskran said the threat to China’s dominance of the rare supply chain in April when Beijing imposed export restrictions on the United States. Within weeks, car manufacturers have warned against stopping production due to a rare lack of land, forcing the United States to return to the negotiating table with Beijing.
“It seems that the historical moment we face is one of these re -evaluation operations for the assumptions of the previous generation about the effectiveness of markets and free trade to solve all our problems in national security,” Wilson said.
Danzmann said that the question is whether the state’s intervention can solve the failure of the free market to address national security concerns in industries such as rare land.
“When you intervene to try to address one of these market failures with this type of government intervention, you can get a series of new market failures,” she said. “You distort the market more.”
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