In a decisive move on January 3, U.S. President Joe Biden blocked Japan's Nippon Steel from acquiring U.S. Steel in a landmark $14.3 billion deal. Citing national security concerns, Biden's decision echoed sentiments previously expressed by President-elect Donald Trump.
Despite Japan being a close ally of the United States, collaborating through initiatives like the Quad and promoting the 'friend-shoring' of industries to counter China, the blocking of Nippon Steel's acquisition underscores a cautious U.S. strategy in safeguarding its strategic industries, even when dealing with trusted partners.
The bipartisan support for protecting U.S. Steel hinges on the promise to preserve 14,000 American jobs. This move appeals to both the left, by safeguarding workers, and the right, by ensuring key industries remain under U.S. control.
However, U.S. Steel, backed by American capital, has raised concerns that blocking the deal could lead to plant closures and job losses. The company cites its current capacities as lagging behind global standards, resulting in inefficiencies that Nippon's investment aimed to address.
Amidst Biden's 'open borders' stance and policies that haven't prioritized socialism for U.S. workers, Trump’s 'Make America Great Again' agenda, particularly his stance on H-1B visas, stands in fundamental opposition to workers' interests. This dynamic suggests that discussions around workers' rights are being co-opted to serve the broader class interests of both Biden's transnational capital and Trump's national capital.
Despite these political divisions, the blocking of Nippon Steel's acquisition highlights a blurred line within Western capital interests. From a defense perspective, the U.S. Department of Defense (DoD) requires only 3% of domestically manufactured steel, none of which is sourced from U.S. Steel. Instead, the DoD relies on higher-grade steel from abroad, a gap Nippon's investment sought to fill by bringing technological upgrades to U.S. Steel.
Nippon's hefty price tag to acquire U.S. Steel reflects its ambition to gain access to the protectionist U.S. market. The company has marketed the deal by promising to maintain operations in Pennsylvania, the home state of U.S. Steel.
Ideologically, Nippon positions the acquisition as a strategic move to bolster the 'free world's' steel-making capacity, thereby supporting U.S. defense and military production. This narrative aims to align the deal with broader geopolitical and defense objectives, despite the significant financial and strategic concerns raised by U.S. authorities.
Reference(s):
cgtn.com
