US President Joe Biden is pitching his US$2.25 trillion infrastructure plan as integral for his country to keep ahead of China – a rivalry that ASX share investors should warmly embrace.
The president warned that China is trying "to own the future" as he pushes US lawmakers to get behind his ambitious plan, reported Bloomberg.
The new economic arms race will have implications for a range of ASX miners and could reach well beyond the obvious names.
US-China rivalry is good for ASX iron ore miners
It's easy to see how iron ore demand will get a boost as steel is needed to build infrastructure. But I don't believe that the increase in US demand is factored into the earnings forecasts of the ASX iron ore majors.
These include the Rio Tinto Ltd (ASX: RIO) share price, Fortescue Metals Group Limited (ASX: FMG) share price and BHP Group Ltd (ASX: BHP) share price.
Some analysts have recently warned that the iron ore price is set for a sharp pull-back as Chinese demand for the mineral can't maintain its fervent pace.
Earnings upside for these ASX shares
That may be true, but there's no mention about what's happening in the US. If Biden gets his way, the ramp up in infrastructure construction activity could roughly coincide with the predicted slowdown in China.
This means that the iron ore price, while it may not break new record highs, might not fall as far as some experts are forecasting.
Other ASX shares to benefit from US infrastructure stimulus
But there is a wide range of other ASX miners that could get a Biden boost too. The president made it clear that his massive infrastructure stimulus isn't just about road and rail.
"Do you think China is waiting around to invest in its digital infrastructure or in research and development?" Biden was quoted as saying by Bloomberg.
"I promise you, they are not waiting. But they're counting on American democracy to be too slow, too limited and too divided to keep pace."
Biden wants to use part of the $3 trillion to spend on water pipes, charging stations for electric vehicles and technology.
The move could add further support to copper, lithium and rare earth prices.
Foolish takeaway
Some ASX shares that are synonymous with these minerals include the OZ Minerals Limited (ASX: OZL) share price, Lynas Rare Earths Ltd (ASX: LYC) share price, Galaxy Resources Limited (ASX: GXY) share price and Orocobre Limited (ASX: ORE) share price.
It shouldn't be lost on investors that the benefits from the US stimulus will go beyond ASX share prices.
Biden's bold plan has the potential to lower Australia's dependency on China – and that's something all Aussies would welcome.
