Biden halts Nippon Steel's acquisition of US Steel
On Friday, US President Joe Biden unveiled an executive order aimed at preventing Nippon Steel from acquiring US Steel, as stated in a release from the White House.
TroibNews 
US President Joe Biden announced on Friday that he would formally block Nippon Steel Corp.'s $14.9 billion acquisition of US Steel Corp., citing national security concerns and the integrity of supply chains.
In his statement regarding the executive order, Biden emphasized that the takeover would "place one of America’s largest steel producers under foreign control" and pose risks to US national security and vital supply chains.
Founded in 1901, US Steel has been a cornerstone of American industrialization, providing steel for key infrastructures such as bridges, buildings, and the US Navy fleet during World War II. However, the company has faced ongoing financial challenges in recent years, experiencing substantial losses and lagging behind other American steel manufacturers, which prompted the decision to seek buyers.
In December 2023, Nippon Steel unveiled plans to buy US Steel, indicating intentions to keep the company’s name, retain its headquarters, and invest billions into its operations.
The Biden administration has argued that retaining US control over critical industries like steel is vital for national security.
The United Steelworkers Union previously voiced strong opposition to the acquisition, expressing fears that foreign ownership could result in job losses. Lawmakers from both political parties have also raised concerns regarding the transaction.
In response to Biden’s order, US Steel and Nippon Steel have criticized it as unlawful and hinted at potential legal action. In a joint statement, they contended that the administration's decision was influenced more by political factors than by genuine national security considerations.
Japanese Digital Minister Taro Kono expressed his astonishment in an interview with China Central Television, remarking that it was unexpected for the deal to be framed as a security issue. "If the US adopts a politicized approach, we don't know what else we can do," he stated.
Bill Reinsch, a former official from the Bill Clinton administration and now a senior advisor at the Center for Strategic and International Studies, commented to Chinese financial news outlet Cailian Press that, regardless of the motivations behind the decision, the Biden administration has strayed from globalization principles and expanded the definition of "national security."
Liu Chunsheng, an associate professor at the Central University of Finance and Economics, told CN that the acquisition plan, which promised modernization and the preservation of the US Steel name, could have positively influenced the US steel industry. Liu noted that US Steel had aimed to resolve its operational challenges through the sale, suggesting that Biden's decision could hinder its growth prospects.
Camille Lefevre for TROIB News
In his statement regarding the executive order, Biden emphasized that the takeover would "place one of America’s largest steel producers under foreign control" and pose risks to US national security and vital supply chains.
Founded in 1901, US Steel has been a cornerstone of American industrialization, providing steel for key infrastructures such as bridges, buildings, and the US Navy fleet during World War II. However, the company has faced ongoing financial challenges in recent years, experiencing substantial losses and lagging behind other American steel manufacturers, which prompted the decision to seek buyers.
In December 2023, Nippon Steel unveiled plans to buy US Steel, indicating intentions to keep the company’s name, retain its headquarters, and invest billions into its operations.
The Biden administration has argued that retaining US control over critical industries like steel is vital for national security.
The United Steelworkers Union previously voiced strong opposition to the acquisition, expressing fears that foreign ownership could result in job losses. Lawmakers from both political parties have also raised concerns regarding the transaction.
In response to Biden’s order, US Steel and Nippon Steel have criticized it as unlawful and hinted at potential legal action. In a joint statement, they contended that the administration's decision was influenced more by political factors than by genuine national security considerations.
Japanese Digital Minister Taro Kono expressed his astonishment in an interview with China Central Television, remarking that it was unexpected for the deal to be framed as a security issue. "If the US adopts a politicized approach, we don't know what else we can do," he stated.
Bill Reinsch, a former official from the Bill Clinton administration and now a senior advisor at the Center for Strategic and International Studies, commented to Chinese financial news outlet Cailian Press that, regardless of the motivations behind the decision, the Biden administration has strayed from globalization principles and expanded the definition of "national security."
Liu Chunsheng, an associate professor at the Central University of Finance and Economics, told CN that the acquisition plan, which promised modernization and the preservation of the US Steel name, could have positively influenced the US steel industry. Liu noted that US Steel had aimed to resolve its operational challenges through the sale, suggesting that Biden's decision could hinder its growth prospects.
Camille Lefevre for TROIB News
