Rare !Japan also has to be checked

Mondo Social Updated on 2024-01-30

According to the "Nihon Keizai Shimbun", the White House said on the 21st that Nippon Steel's acquisition of the American steel giant U.S. Steel Corporation intends to approve the review of the acquisition from the perspective of safety and security. Japanese media analysis believes that before the US ** election, Biden showed a posture of standing aside with the unions and workers who opposed the acquisition, and made a difficult judgment in the gap between maintaining relations with the ally Japan and gaining domestic support.

According to the White House on the 21st, Brainard, director of the White House National Economic Council, stressed in a statement that Biden believes that U.S. steel companies are still the core of domestic steel production and are crucial to the world, "even if it is an acquisition of close allied companies, it is worth serious and careful review from the two points of security and impact on the chain." Japan's Kyodo news agency said the statement noted that it was prepared to "act where appropriate," suggesting that it would ask Nippon Steel to prove that it would not pose a security threat.

The White House statement said the Committee on Foreign Investment in the United States (CFIUS) would conduct a detailed investigation into the acquisition. CFIUS is responsible for investigating overseas acquisitions and investments, and has the right to deny that foreign companies owning U.S. land and technology that are deemed to lead to a decline in U.S. competitiveness or information leakage. According to the Nihon Keizai Shimbun, CFIUS is mainly aimed at China and other countries that are worrying the United States on security, and it is rare for the United States to say that it will review the acquisition of allied companies.

U.S. Steel is a well-known traditional steel company in the United States, and this acquisition puts Biden**, who advocates "America First", in an embarrassing position. Nippon Steel announced the news of the acquisition on the 18th, which caused opposition from some members of the U.S. Congress and labor unions. Pennsylvania, where U.S. Steel is headquartered, is one of the hottest states for next year. In order to attract the votes of manufacturing workers, Biden learned the lessons of the previous **, and also proposed an "America First" economic policy, and also mentioned in the statement released by the White House on the 21st that "Biden ** believes that (American) union workers are the best workers in the world."

Japan's Kyodo News believes that with an eye on the election, Biden has shown an attitude of taking into account the unions. With Biden** showing a cautious stance, the Nippon Steel takeover process is likely to be delayed.

The Nihon Keizai Shimbun pointed out that if Biden refuses Nippon Steel's acquisition of U.S. Steel, it may contradict the "friendly shore outsourcing" strategy advocated by the United States to unite allies and friendly countries to build a chain.

Yue Linwei, a special correspondent of this newspaper in Japan.

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