US government's recent equity stakes in companies like Intel signal a new industrial policy tool, shifting from emergency backstops to geopolitical strategy.
MarketWatch reports that the US government's recent deals to take stakes in companies, such as its investment in Intel last August, represent a new approach. Unlike the 2008 financial crisis where government ownership served as an emergency backstop for troubled firms, these new investments are part of a standing industrial policy aimed at backing businesses crucial for geopolitical advantage, particularly in competition with China for global leadership.
Source:MarketWatch · Source Link
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