Social Post: Trump’s America First State Capitalism Comes for Saudi
MP Materials and the US Department of War just created a Saudi Joint Venture with with a Saudi rare earth refinery The US government is now a shareholder inside a Saudi industrial assetThis is the model Trump has been building. 1/
Replace financialised leverage with direct state equity. The agreement does not involve any cross border capital, lending, or dollar flows, and the entire relationship is built on shared equity. 2/
Saudi Arabia is comfortable with this arrangement because it follows the same state led industrial model it has already developed with China, where long term influence comes from joint assets rather than financial exposure. 3/
The United States is shifting away from the financialised model it used for decades, where influence was exercised through loans, guarantees, and private capital, and it is now asserting power through direct ownership of critical production. 4/
The structure also mirrors the precedent set by Qatar’s co-building of a US airbase inside the US, where strategic alignment is built through shared physical infrastructure rather than finance. 5/
Trump is rebuilding the US political economy around state control of strategic industries, and Saudi Arabia is adapting to this reality by embedding itself inside the emerging ownership based system rather than the old financial one. 6/
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