This article**[China**Net];
News of Nippon Steel's proposed acquisition of U.S. Steel has caused an uproar since it was revealed last week. Despite the close U.S.-Japan alliance, the $14.9 billion deal still faces setbacks.
Although U.S. Steel will retain its name, workers, and headquarters in Pittsburgh, the bankrupt company, a symbol of American industrialization and national pride, for a foreign company, even ally, to control U.S. Steel is an unacceptable pain for many Americans.
The United States ** Biden has no choice but to try to strike a balance between the parties. Immediately after the information was revealed, the White House issued a statement expressing concern for American workers and interests in response to the foreseeable ** of some lawmakers and steelworkers. The statement said:"He (Biden) argues that the acquisition of this iconic U.S.-owned business by a foreign entity, even one of a close ally, seems worthy of serious scrutiny"。
The United Steelworkers of America welcomed the announcement. At the urging of U.S. lawmakers, CFIUS is launching an investigation into the deal, which will take about four to five months.
Whatever CFIUS recommends, the final decision is in the hands of CFIUS and will most likely be postponed until after next year. Until then, Biden will use this to express his concern for American workers and satisfy the unions, and on the other hand, he will do some lobbying work to get the Japanese side to make greater concessions.
The acquisition, which will give rise to the largest steelmaker outside of China and further squeeze China's limited share of the premium special steel market, will also provide Biden with useful leverage to push the deal through regulatory investigations. Therefore, if Washington allows Japan to control this jewel in the crown of American industry, it will be more like a trade-off played by Biden to make up for the losses suffered by Japan in following the US containment strategy against China.
This article is translated from the December 27 editorial of China**
Original title: steel***deal aimed at better welding japan to washington's geopolitical strategy
Produced by: China's ** Editorial Office