U.S. Industrial Policy Shifts to Strategic Bifurcation Amidst China's Mineral Dominance
The United States is implementing a strategic bifurcation approach in its industrial policy, primarily aimed at reducing economic and strategic dependencies on China. This policy focuses on critical sectors such as artificial intelligence, semiconductors, energy, and raw materials. China currently holds a highly integrated and optimized mineral value chain, spanning from exploration to the manufacturing of high-performance magnets. In response, the U.S. is building strategic reserves, forging new alliances, and pursuing aggressive industrial policies. These measures include subsidies, offtake agreements, and guaranteed minimum prices for critical materials. Additionally, there is an increased emphasis on recycling to regain lost ground in these supply chains. The overarching goal is not a complete economic decoupling from China, but rather to mitigate dependencies that could be used as political leverage, ensuring secure access to vital resources. 
