What Happened
Washington Should Act Like A Shareholder With Disciplined Investment Strategies
The US government has announced significant investments in various strategic sectors, including critical minerals and semiconductors, sparking debate about its role in industrial policy. As reported by Breaking Defense, the government’s increasing involvement in equity investments raises questions about the need for clear rules and governance protections to ensure that taxpayer money is used effectively. Two advisors argue that the government should establish a baseline set of governance principles for investments in foreign companies, including independent board and audit oversight, related-party transactions, dilution, disclosure, and the government’s rights when governance standards deteriorate.