Biden opposes Japanese takeover of US Steel, touts ‘American steelworkers’ – Shiv Telegram Media
2 min read
US President Joe Biden has taken a strong stance against the sale of a Pittsburgh-based steel manufacturer to Japan’s largest steel producer, Nippon Steel. In a recent statement, Biden emphasized the importance of “strong American steel companies powered by American steelworkers,” signaling his opposition to the acquisition.
The move comes as Biden strives to secure support in Pennsylvania, a crucial swing state, ahead of the upcoming November election. The proposed acquisition of US Steel by Nippon Steel is currently being reviewed by the Committee on Foreign Investment in the United States (CFIUS), a process that Biden’s remarks could influence.
Following Biden’s comments, US Steel shares experienced a significant 6.4 percent drop, indicating investor concerns about the potential impact of the sale. The United Steelworkers International has voiced support for Biden’s position, citing national security and critical infrastructure considerations.
On the other hand, the US Chamber of Commerce has criticized the politicization of the CFIUS review process, highlighting the importance of Japanese investment in the American economy. This intervention by Biden may jeopardize relations with Tokyo as the US aims to strengthen its alliance with Japan to counter China’s influence.
Japanese Prime Minister Fumio Kishida is scheduled to visit the White House on April 10 for discussions on enhancing the US-Japan alliance, amidst growing tensions over the steel industry deal. As the situation unfolds, the implications of Biden’s opposition to the sale could have far-reaching consequences for both countries. Stay tuned for further updates on this developing story.
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