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Biden believes U.S. Steel sale to Japanese company warrants 'serious scrutiny'

42 Comments
By ZEKE MILLER and FATIMA HUSSEIN

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42 Comments
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Can you see which partner is not quite equal in this relationship?

-4 ( +12 / -16 )

Ah yes the free market working as intended. No hypocrisy to see here. Now, move on.

-2 ( +11 / -13 )

Steel is national security so scrutiny is to be expected

14 ( +17 / -3 )

the timing is bad, especially with such a contentious election nearing.

5 ( +7 / -2 )

"Democratic free trade" etc lol

Yea the US is keenly aware of how moving into another countrys turf via commercial acquisition can be debilitating to the host country over time and allow for espionage and other nefarious activities.

1 ( +12 / -11 )

Is there anything Biden's political and economic hacks do not want to try to control? That's on top of letting the dollar printing press do 'weeeeee' for his first two years.

I guess this can serve as a wake up call for Kish & Co. Asian will never be full members of the Anglo-American led world order.

-1 ( +13 / -14 )

I don't see the national security risk. The mills and factories are in the US and can be taken over by the government in case of an emergency if necessary.

8 ( +14 / -6 )

If it was Nippon steel or Mitsubishi heavy industries being bought out by US companies, it would be natural for there to be questions in Japans government, as there is now in the US over this proposed sale. Iconic and nationally important companies and steel is quite an important National industry, should naturally be scrutinized deeply before any sale, by all involved.

5 ( +11 / -6 )

Ah yes the free market working as intended. No hypocrisy to see here. Now, move on.

> Can you see which partner is not quite equal in this relationship?

Pretty naive attitude. Of course huge acquisitions from foreign interests should always face scrutiny. Anyone who thinks the "free market" allows foreign companies to buy into domestic markets with no major checks and balances is living in fantasy land.

Having said that, if all approved, rather Japan buy US Steel than the Chinese government. Japan will definitely help revive the industry, improve the quality, boost employment - and probably improve pay and conditions for the steelworkers of America. It's a win-win.

1 ( +11 / -10 )

deanzaZZRToday 05:44 pm JST

Is there anything Biden's political and economic hacks do not want to try to control? That's on top of letting the dollar printing press do 'weeeeee' for his first two years.

The big jump in the Fed balance sheet was in 2020 under the Former Guy.

-3 ( +6 / -9 )

Fighto!Today 06:20 pm JST

probably improve pay and conditions for the steelworkers of America.

It's a union shop. The pay and conditions are probably pretty good already.

4 ( +7 / -3 )

It would be better for Nippon Steel to get out of this deal. They would only lose money in a hostile business environment and would have to pack up and leave penniless.

-5 ( +8 / -13 )

Japan Inc has a habit of getting a bad deal out of these purchases. Take the chance and get out now.

5 ( +10 / -5 )

MeiyouwentiToday 06:28 pm JST

It would be better for Nippon Steel to get out of this deal. They would only lose money in a hostile business environment and would have to pack up and leave penniless.

All that has been said is that it warrants scrutiny. If the CEO of Nippon Steel had your level of decisiveness the company would be bankrupt. And nobody thinks the US is a hostile business environment except maybe the Chinese and rightly so.

-1 ( +6 / -7 )

Just before election year the Democrats (Biden) must show concern. Any foreign invdestment requires scrutiny and approval by the CFIS.

3 ( +7 / -4 )

Nippon Steel dodged a bullet phew.

-9 ( +3 / -12 )

The Military Industrial Complex will be buying it's steel from A Japanese company to build U.S. Tanks, APC, Hummers, Ships, and so on .... did anyone really think that this would fly???

The same goes the opposite way too.

-1 ( +2 / -3 )

Imitation is the sincerest form of flattery. Biden’s merely copying our masterful hosts and their second to none record of subjecting to the closest scrutiny foreign economic penetration in all its guises. Japan Inc., we salute you.

-7 ( +2 / -9 )

It's probably Japan that should be doing the scrutiny. I am surprised US Steel has even made it into the 21st century. It was on its last legs way back in the 1970s when I lived in Pittsburgh. Might need some belt-tightening and modernization.

6 ( +8 / -2 )

What’s the alternative? US steel and its jobs go under.

7 ( +9 / -2 )

Sounds like another US taxpayer bailout will be on the way.

The central government money for so many industries is no different than the old Soviet Union strategy. Prop up inefficient industries that can’t compete in a market economy and give the workers jobs so they support the benevolent leaders.

Sooner or later, you run out of other peoples money.

1 ( +3 / -2 )

Leave it to die instead then

-3 ( +2 / -5 )

Can someone explain how the USA surrounded by huge oceans on two sides and two friendly (enough) countries north and south sees everything through a national security lens? It's boggles the mind.

1 ( +5 / -4 )

BidenObamanomics at its "best".

-4 ( +3 / -7 )

They better try to close the steel before Trump becomes president again.

0 ( +3 / -3 )

Its a business deal. Who cares

-4 ( +2 / -6 )

Certain infrastructure businesses need to be controlled by people who are citizens of the country. That applies to every country. Losing the opticis that provides can be seen as a national security problem.

The US has allowed these sorts of transactions in the past. If the alternative is that the plant closes entirely if the sale doesn't go through and legal requirements can be included in the contract for the new owners, there is a way to have a less than ideal outcome.

-1 ( +0 / -1 )

Can someone explain how the USA surrounded by huge oceans on two sides and two friendly (enough) countries north and south sees everything through a national security lens? It's boggles the mind.

Because evil exists everywhere these days. Especially in the South China Sea and across the Pacific ocean to the coasts of Peru and Chile where certain fishing fleets are raping the seas.

There are other places with evil in the world, which must be confronted, sometimes with force. If creating that force needs specific manufacturing, having that manufacturing at risk for being cut is a national security problem.

Without steel, ships that can stand up to being rammed in the South China Sea cannot be built.

0 ( +1 / -1 )

Don't complain Joe..

Japan is saving decadent US steel industry..

LOOOOOL!!..

-1 ( +2 / -3 )

Japan is an ally of the US?

Maybe Joe forgot?

Easy to mistake Japan with China, right?

-3 ( +2 / -5 )

Because evil exists everywhere these days. Especially in the South China Sea and across the Pacific ocean to the coasts of Peru and Chile where certain fishing fleets are raping the seas.

*There are other places with evil in the world, which must be confronted, sometimes with force. If creating that force needs specific manufacturing, having that manufacturing at risk for being cut *is a national security problem.

Without steel, ships that can stand up to being rammed in the South China Sea cannot be built.

The good old pathetic excuse of US for its interventionism and neo colonialistic pretentiousness..

-2 ( +1 / -3 )

kurisupisuToday 12:46 am JST

Japan is an ally of the US?

Maybe Joe forgot?

Easy to mistake Japan with China, right?

They literally say Japan is a close ally in the statement.

0 ( +1 / -1 )

deanzaZZRDec. 22 09:32 pm JST

Can someone explain how the USA surrounded by huge oceans on two sides and two friendly (enough) countries north and south sees everything through a national security lens? It's boggles the mind.

Because we learned from fighting the Nazis that it is way better to fight them before they get even larger as Russia and China are attempting to do. Also even the US needs its allies kept free of corruption to trade with.

-1 ( +1 / -2 )

Hervé L'EisaDec. 22 09:43 pm JST

BidenObamanomics at its "best".

Quite literally so as the stock market just reached all time highs.

1 ( +2 / -1 )

Wow, it's like 80's!

I am happy to see that some Japanese companies still have some passion (and money).

0 ( +1 / -1 )

It's a good "nation building" play for earning business from and supplying steel to the JP Auto companies which will be increasingly pressured to manufacture vehicles in the US. But my goodness what a horrendous play from a timing and currency perspective. Making huge all cash deals when the JPY is at 30 YEAR LOWS. Japanese investors should have been shopping like crazy back when the yen was closer to 100 to 1 USD. They've lost serious purchasing power and now they are shopping while assets are at all time highs and their home currency is at generational lows. Classic Japan Inc move; too slow and declining into irrelevance.

0 ( +0 / -0 )

Wow, it's like 80's!

That made me smile.

In the 60s in Scotland, the shipbuilding industry hit various problems. We were told it had all moved to Japan, and that was probably correct. Then I moved to Japan in the 80s and got to teach [see below] at a shipbuilding company where they were laying off workers like crazy. Why, I asked. Because the industry has moved to Korea, I was told. And now I ask myself where it moved after Korea.

The steel industry in Scotland followed a similar pattern about a decade later. I also got to teach [see below] at a couple of steel companies in Japan. It's nice to see they're still keeping at it.

[below] My job was to teach the tech people English. I'm sure I learned far more from my students than they ever learned from me.

-2 ( +0 / -2 )

Capitalism for thee protectionism for me.

0 ( +1 / -1 )

If this take over had been the other way around with the Japanese company being sold to the US one, Biden would not have uttered a word about it.

0 ( +0 / -0 )

If this take over had been the other way around with the Japanese company being sold to the US one, Biden would not have uttered a word about it.

Of course not. That isn't a national security issue for the USA, though it would be for Japan. Then again, it wouldn't be allowed in China. ZERO chance of that. We're still waiting for the day with property can actually be owned in China, not just leased from the govt.

0 ( +0 / -0 )

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