Japan PM says blocked US Steel deal could hit investments

Tokyo: Japan’s Prime Minister Shigeru Ishiba is sounding the alarm about future investments. He’s worried that President Biden’s recent decision to block Nippon Steel’s takeover of US Steel could shake things up for Japanese investors in the US.

Biden’s move, which he says is to protect American industry, has stirred up quite a bit of backlash from both companies involved and from Japan itself. A US government panel couldn’t agree on whether the $14.9 billion deal posed a national security risk, so it fell to Biden to make the call as his presidency was winding down.

Ishiba pointed out that this decision has raised serious concerns in Japan about future investments in the US. He mentioned that the Japanese industrial sector is feeling uneasy about the whole situation. He stressed that these worries need to be taken seriously.

Japan and the US are each other’s biggest foreign investors, so this is a big deal. Ishiba said it’s not really the Japanese government’s place to comment on how the US handles its companies, but they’re definitely urging the US to clear the air about these concerns. They need to explain why they see a national security issue, or else it’s going to be tough to move forward.

Nippon Steel is planning to hold a press conference soon, especially since US Secretary of State Antony Blinken will be visiting Japan shortly after. Biden’s decision came after a lot of back-and-forth over various political and economic pressures.

The outgoing president has been vocal about wanting to rebuild the US manufacturing sector, and he’s been critical of this deal for a while. He argued that letting a major US steel producer fall under foreign control could pose risks to national security and supply chains.

The United Steelworkers union welcomed Biden’s decision, calling it a strong move to protect the domestic steel industry. But Nippon Steel and US Steel are not happy, claiming the decision violates due process. Japan’s industry minister even called it “incomprehensible.”

Nippon Steel had hoped this acquisition would help revive a struggling US company, but critics warned it could lead to job cuts.

Interestingly, this decision had bipartisan support, with both Trump and his team opposing the sale during their campaign. However, the US Chamber of Commerce pointed out that Japanese investment supports nearly a million American jobs. They also warned that this could discourage international investment in the US.

Despite the setback with US Steel, analysts believe Nippon Steel can still meet its production goals. They might find other opportunities to invest in the US or expand their production in other countries like India.

One of Japan’s major business groups noted that protectionist policies are likely to increase under the new administration. They suggested that Japan should strengthen ties with other like-minded countries to avoid over-reliance on the US.