From funding Intel to eyeing a potential stake in Lithium Americas, the United States is increasingly wielding the government’s “visible hand” in its once-celebrated free market – a strategy long associated with China.
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Analysts said Washington’s recent embrace of industrial policy – though limited to certain strategic sectors, such as semiconductors and critical minerals – reflects growing concern over the vulnerability of global supply chains amid rising US-China competition.
“I believe the US government is trying to take a leaf out of China’s playbook,” said Brian Wong, a fellow at the University of Hong Kong’s (HKU) Centre on Contemporary China and the World.
Rajiv Biswas, CEO at Asia-Pacific Economics, agreed that Washington’s recent moves highlight a more “interventionist policy approach”.
“[It] reflects the realisation that commercial market forces may not deliver adequate domestic supply capacity for key inputs of certain key strategic industries such as defence technology or advanced electronics,” said Biswas, speaking from the Fastmarkets Critical Minerals and Metals Summit in Indonesia.
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“Escalating geopolitical tensions have been a key factor driving US government concerns about supply chain disruptions for US imports of semiconductors and critical minerals,” he added.