Treasury Secretary Scott Bessent on industrial policy: We have to be vigilant

Trade Negotiations & International Relations - US is nearing completion of trade negotiations with Korea, ironing out investment details [1] - US-Canada relations are back on track following a meeting between the President and Prime Minister Carney [2] - Discussions with Mexico and India are underway, with potential announcements during an upcoming trip to Asia [2] - A visit to Malaysia is planned, and the President will attend the APEC conference in Korea after visiting Japan [3] - The Vice Premier Julie Fun will meet with US representatives before two conferences [2] Industrial Policy & Strategic Investments - Due to facing a non-market economy like China, the US must exercise industrial policy to ensure self-sufficiency with allies, especially in rare earths [4] - The administration has been taking stakes in private companies deemed strategic and important for the US, with the possibility of more such investments [3] - The government is considering setting price floors and forward buying to prevent China from undercutting market-based processors and refiners in various industries [5] - The government took an equity stake in Intel, which was the conversion of a grant [7] - Private capital is entering the rare earth business, with JP Morgan planning to lend and potentially set up an exchange [8] Rare Earths & Strategic Minerals - China dominates rare earth processing and refining, holding 70% of the mining but 95% of the processing and refining [4] - For 20 years, China has undercut market-based economies in rare earth processing and refining [4] - The US needs a strategic mineral reserve, similar to the strategic petroleum reserve [9] - The leading Chinese rare earth company was previously owned by General Motors and was later sold back to China after five years [10][11] Defense Industry - US defense companies are behind in deliveries, potentially requiring government intervention to encourage more research and fewer stock buybacks [6] - The government, as the biggest or only customer, may need to prod defense companies [6]