U.S. Treasury Secretary Scott Bessent has called for a more assertive American industrial policy to address the growing concern over China’s dominance in the rare earth minerals market. During a meeting with U.S. Trade Representative Jamieson Greer, Bessent underscored the need for the United States to reduce its reliance on China for these critical resources, which are essential for advanced technologies and national defense.
The move is part of a broader strategy by the U.S. government to strengthen its economic and technological independence. Rare earth minerals are vital for manufacturing components in everything from smartphones to electric vehicles and military equipment. China currently supplies over 80% of the rare earth minerals required by the U.S., raising concerns about supply chain vulnerabilities and potential geopolitical risks.
Bessent’s remarks come amid increasing pressure on the U.S. to develop its own sources of these critical materials and to support domestic industries through strategic investments. The administration is reportedly considering measures such as tax incentives for companies engaged in rare earth mining and processing, as well as partnerships with allied nations to diversify supply chains. These efforts are expected to have significant financial implications, impacting both the domestic economy and international trade relations.