The President of the United States blocked a major business deal citing “security reasons”. Close ally Japan wonders what exactly these reasons are.
Prime Minister of Japan Shigeru Ishiba wants more information on why the President of the United States Joe Biden blocked the sale of the US Steel steel company to the Japanese steel company Nippon Steel.
Biden announced last week that the acquisition will be blocked in the name of “strategic protection of domestic industry”.
Biden’s decision has been criticized both in both companies and in Japan. Now the top leadership of Japan – a close military and political ally of the US – joined the criticism.
– They should be able to clearly explain why national security is involved. Otherwise, further discussions will not be successful, Ishiba told reporters.
Ishiba issued a cautious warning to the United States, saying the decision could create uncertainty for Japanese investment in the United States.
Japan and the United States are each other’s biggest foreign investors, so the countries have a lot at stake financially if trade relations suffer.
Biden’s lame arguments
President Biden announced the cancellation of the deals three weeks before the end of his presidency. Biden made the rebuilding of American industry a major theme of his term and is very close to various labor unions.
– This deal would place one of America’s largest steel producers under foreign control and create risks to our national security and critical supply chains, Biden justified his decision.
The American Steelworkers union praised the decision. The acquisitions were expected to lead to some layoffs by the new owner.
US Steel itself said the decision was a clear violation of proper practice and the law. Nippon Steel had said that the acquisitions would save US Steel, which has fallen behind the competition in the industry in recent years.
Source: AFP, Reuters