“If we are adding fundamental value to your business, (then) I think fair for (President) Donald Trump to think about the American people,” Lutnick said.
The comments follow an announcement last week that the US government secured a 10% stake in struggling Silicon Valley pioneer Intel. “The United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future,” Trump wrote in a post.Subsequently, White House economic advisor Kevin Hassett commented that the US government is open to acquiring more such stakes in companies like in the case of Intel. “At some point, there’ll be more transactions, if not in this industry then other industries,” Hassett said.
On defence companies’ transactions with the US government, Secretary Lutnick pointed out that Lockheed Martin, a Maryland-headquartered company, generates 97% of its revenue from the US government.
“They are basically an arm of the US government,” said Lutnick, adding that the country’s defence secretary and the deputy secretary are working on ways to best leverage the situation. Ultimately, the Commerce Secretary stressed, “There is a lot of discussion that needs to be had on how we (the US government) finances its ammunition acquisition.”
In July, the US Defense Department became the largest shareholder in rare earth miner MP Materials after acquiring shares worth $400 million of the company. MP Materials owns the only operational rare earth mine in the US.
Chinese rare earth exports to the US had become the biggest talking point in trade negotiations between the two countries. Following the US tariff announcement, China retaliated with restrictions placed on exports of rare earths, a group of 17 minerals, which are used widely in high-tech and defense manufacturing.
(Edited by : Ajay Vaishnav)
