Thinking About China
Opinion

Is the US Testing State Ownership of Key Sectors for Geopolitical Leverage?

Is the US Testing State Ownership of Key Sectors for Geopolitical Leverage?
Semiconductor chips on a printed circuit board on Feb. 17, 2023. Florence Lo/Illustration/Reuters
Li Li
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Commentary
On Jan. 26, it was reported that the Commerce Department will provide USA Rare Earth with a $1.3 billion loan and $277 million in federal funding in exchange for 16.1 million shares of common stock and 17.6 million warrants. Depending on whether the warrants are exercised, the U.S. government will hold an 8 percent to 16 percent stake in USA Rare Earth, an Oklahoma-based producer.
Li Li
Li Li
Author
Li Li, CFA, CIPM, CFP®, is an adjunct professor in the M.S. in Financial Planning program at New York University and a wealth management advisor at Forest Hill Financial Group. She studied economics at Rutgers University and the University of California–San Diego, has taught economics at Pace University, and previously served as a strategist and analyst at AT&T. She can be reached at [email protected]