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Why Biden blocks Japan from acquiring US Steel?

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sunnylin01

Jan 05, 2025, 17:07


This photo taken on May 22, 2024 shows the White House in Washington, D.C., the United States. (Xinhua/Liu Jie)

(Xinhua) -- U.S. President Joe Biden on Friday blocked Japan's Nippon Steel's proposed acquisition of U.S. Steel, citing national security concerns -- a decision that economists say could hurt American steelworkers and the U.S. economy.

In response, Japan's Minister of Economy, Trade, and Industry Yoji Muto described the move as "incomprehensible and regrettable" in a statement on Saturday.

The decision delivered a setback to Washington's relations with its closest Asia-Pacific ally and prompted the companies to threaten legal action, the Financial Times said in a report.

So why is Biden against the deal and what could come next?

7 754
Newtown
gork post time: 2025-01-05 19:11

''But the “upset” win can be attributed to the fact that every member of the US team was ethnic Chinese, students whose parents had immigrated to the US from China.'' Which indicates that USA is benefitting from China's brain drain. ( Nice colour coding. )

gork

Also note in the article I posted below how China leads in 37 out of 44 fields. Yet the Great Satan leads in the remaining 7. Where is the rest of the World?

In other words, the Great Satan sabotages its own vassals as I pointed out with Ford and Volvo and Jaguar or Microkrap and Nokia. Occupied Japan and Germany were sabotaged with the Plaza and Louvre Accords pushing their currencies far higher as well as Robert Lighthizer attacking Japan's economy similar to how he's now been enlisted to do the same to China, but where the Great Satan has failed to succeed. This is why the likes of Brandon Smith appeared on the Schwing-Schwing Show and was denounced by max. Kiester as a bigot when he said China was supposed to adopte "western values" but didn't; an euphemism for becoming a vassal of the Great Satan.

gork

“We didn’t celebrate the end of our incarceration, because we were more concerned about our future. Since we had lost everything, we didn’t know what would become of us,” Berk recalls.
- Righting a wrong against Japanese-American internees name by name

Get that? They "lost everything" because all their property was seized despite no claim they'd done anything wrong. That's similar to how when the Great Satan and poodle admitted there were no WMD in Iraq, they STILL failed to apologise and pay reparations. Instead, the Great Satan burned all of Saddam Hussein's bonds and flooded Iraq with tens of billions of shrink-wrapped bales of "worthless paper" USD, having also seized Iraq's $18bn in FX reserves to do so and then built a HUGE military base there.

Even worse, chinese and korean Amerikans were ALSO incarcerated and China was on their side. German and italian Amerikans were not and even served in the Great Satan military. Whilst the Anglo/Jew gangsters bombed Dresden, the horrors of nukilar bombs were reserved for Hiroshima and Nagasaki; two civilian centres because all the military targets had already been destroyed.

The head-taxes on Chinese and the Chinese Exclusion Act were also applied to Japanese and Koreans. When "black Wall St." in Tulsa became successful, they accused a black youth of assaulting a white woman and then massacred the population, whilst burning it to the ground.

The gangster-run, thieved prison-state of Kanada even forcibly re-located japanese Kanadians and that was AFTER the war that the Anglo/Jew gangsters started to impose jew-confetti on the planet for a second time.

The Anglo/Jew gangsters can't compete and with all their Jim Crow/jewish-socialism cheating are breeding themselves dumber and dumber, with the graph of collapsing IQ depicted in the movie, "Idiocracy", being genuine. When Zero Hedge posted the graph, these bigots superimposed a silhouette of Africa on it.


gork

The Great Satan vowed to sabotage the joint sino-european sat-nav project and then did, arresting three chinese Amerikans; one for selling items on eBay, another for giving a lecture in China that was already in the public domain because he'd given it many times before and a third for sharing EUROPEAN cryogenic technology. Similarly, neither Volvo or Jaguar returned a profit whilst under Ford ownership because they were deliberately sabotaged. The Jaguar s-type was just a Ford Mondeo. Microkrap also sabotaged Nokia.

In the many advanced fields of science and technology, China is at the world frontier, if not in the lead.
. . .
Leadership in science and technology wins wars and builds successful economies. China’s growing strength, backed by a state-controlled government, is shifting global power. Unlike open societies where research is public and shared, China often keeps its researchers’ work secret while also taking Western technology through hacking, forced technology transfers and industrial espionage.
- US, EU, Japan tighten research security as China dominance grows

So YET AGAIN China has used a magic/space time-masheen to travel to the future to steal technology from the amerikan dumbass. Presumably, the Kafka-esque claim of a "state-controlled government" is a deliberate admission that he's spouting krap.

Never mind that the Great Satan has a white-supremacist, apartheid edukashun system:

"Judge Rules Harvard Can Keep Discriminating Against Asians Using 'Race-Conscious Admissions'"

This is the "jewish-socialism", which is just a Jim Crow pig with lipstick. Not only is it an admission that they can't compete, but it ensures they continue to breed themselves dumber and dumberer, because what kills you makes your species stronger.

"'Donald Trump called former US president Jimmy Carter to discuss fear China is ‘getting way ahead’ of US'"

Harvard University’s Belfer Center for Science and International Affairs stressed that China has “displaced the US as the world’s top high-tech manufacturer.” In terms of “artificial intelligence, 5G, quantum information science, semiconductors, biotechnology, and green energy … it has already become number one. In others, on current trajectories, it will overtake the US within the next decade.”
- Chinese tech flying high across the Gulf

China leads in 37 of 44 technologies tracked in a year-long project by thinktank the Australian Strategic Policy Institute. The fields include electric batteries, hypersonics and advanced radio-frequency communications such as 5G and 6G.

The report, published on Thursday, said the US was the leader in just the remaining seven technologies such as vaccines, quantum computing and space launch systems.
- China leading US in technology race in all but a few fields, thinktank finds

Gina Raimondo has just admitted that the policy of holding back China is a "fool's errand". But the Great Satan's robber-barons only care about the short-term profits. Just look at the s**t-show that is Boeing under bean-counter Calhoun, but which used to have a monopoly.

“The US focus has been on tripping up China rather than improving our own international competitiveness,” he said. “Without serious repairs to restore a sound American political economy, our future is in jeopardy, and we will be in no condition to compete with the world’s rising and resurgent great powers, especially China.”
- China-US relations: ‘let’s fix our own national messes before competing with Beijing’, says former diplomat

In fact, all they're doing is isolating themselves:
One anecdotal story will illustrate my point. At a recent international math competition among high-school students, the US team beat the team from China for first place. But the “upset” win can be attributed to the fact that every member of the US team was ethnic Chinese, students whose parents had immigrated to the US from China.
- Biden’s China obsession could be the undoing of America

As self-hating Jew Ron Unz tells us, 24% of Ivy League places are awarded to Jews only because Jews have commandeered these institutions. In Kalifornia, proposition 209 bans the bigotry so 40% of places go to Asians. But even that is under assault:

"Judge Seligman’s historic decision puts an end to racist tests that deprived countless California students of color, students with disabilities and students from low-income families of a fair shot at admissions to the UC system," Mark Rosenbaum, director of Public Counsel’s Opportunity Under Law project, said in a statement.
- University of California system can no longer consider SAT, ACT results in admissions, judge rules

Similarly, 22% of Nobbled prizes go to Jews, despite the illegitimate state of New Izrael performing even worse than the poodle state in the PISA tests:

When the English are worse at English than the Chinese, you know you’re in trouble.
- SATs aren't damaging kids — low expectations are

sunnylin01

WHAT'S NEXT?

The move could have implications for future foreign investment in American companies. "Blocking the deal could be politically popular domestically but could scare away foreign investment in other U.S. companies. It could also starve U.S. Steel of investment it says it needs," CNN said in a report on Friday.

Gary Clyde Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, told Xinhua that this is really "bad news" for the U.S. economy and American steelworkers. "Nippon Steel has superior blast furnace technology and the cash to implement capital improvements. U.S. Steel has neither, nor do potential U.S. buyers," he said.

"Two years from now, U.S. Steel workers, along with shareholders, will sadly regret Biden's decision as the firm sheds workers and shares drop in value. Meanwhile, (President-elect) Trump will likely impose still higher tariffs on U.S. steel imports, imposing high costs on the U.S. economy. A bad outcome all around," said Hufbauer.

Shares of U.S. Steel fell 6.53 percent on Friday after Biden blocked the acquisition.

Japan is the largest source of foreign direct investment in the United States. In November 2024, Japanese Prime Minister Shigeru Ishiba asked Biden to approve Nippon Steel's acquisition of U.S. Steel to avoid marring recent efforts to strengthen ties between the countries, Reuters said in a report.

The outgoing president's decision is "a departure from America's long-established culture of open investment, one that could have wide-ranging implications for the U.S. economy," The New York Times said in an article.

It is also likely to raise concerns about U.S. receptiveness to future foreign investment, with president-elect Donald Trump also opposing the deal, according to the Financial Times.

sunnylin01

HOW DID U.S. STEEL, NIPPON STEEL RESPOND?

Biden's decision followed fierce opposition from the United Steelworkers union to the deal. The group's campaign proved fatal to the purchase, despite intense lobbying in recent weeks from executives at U.S. Steel and Nippon Steel, the Financial Times said.

U.S. Steel had also previously urged Biden to approve the deal. Following CFIUS's decision to refer the pending transaction with Nippon Steel to the president, U.S. Steel said in a statement that this transaction should be approved on its merits and serve as a model for "friendshoring" investment.

"It is the best way, by far, to ensure that U.S. Steel, including its employees, communities, and customers, will thrive well into the future," it said.

In a joint statement Friday, the two companies said they are "dismayed" by Biden's decision to block Nippon Steel's acquisition of U.S. Steel, "which reflects a clear violation of due process and the law governing CFIUS."

"The President's statement and Order do not present any credible evidence of a national security issue, making clear that this was a political decision," the statement said. "Unfortunately, it sends a chilling message to any company based in a U.S. allied country contemplating significant investment in the United States."

"Following President Biden's decision, we are left with no choice but to take all appropriate action to protect our legal rights," it added.

"President Biden's action today is shameful and corrupt. He gave a political payback to a union boss out of touch with his members while harming our company's future, our workers, and our national security," David Burritt, U.S. Steel president and CEO, said in a statement on Friday.

"He insulted Japan, a vital economic and national security ally, and put American competitiveness at risk," he added.

sunnylin01

WHY DOES BIDEN OPPOSE THE DEAL?

Biden, who has long been opposed to the purchase, issued a statement on Friday, saying the acquisition "would place one of America's largest steel producers under foreign control and create risk for our national security and our critical supply chains."

In an executive order signed on the same day, Biden cited the 1950 Defense Production Act, stating that Nippon Steel "might take action that threatens to impair the national security of the United States."

Biden's decision "isn't about Japan," National Security Council spokesperson John Kirby said in a briefing on Friday. "This is about U.S. steelmaking and keeping one of the largest steel producers in the United States an American-owned company."

In late 2023, the Japanese steel giant Nippon Steel Corporation announced plans to acquire U.S. Steel, which was once a symbol of American industrial might but has since declined significantly.

Before Biden withdrew from the race, both he and his then-opponent, Donald Trump, had expressed opposition to the acquisition.

Biden's economic team had previously said that the Committee on Foreign Investment in the United States (CFIUS) would conduct a review of the acquisition.

Recently, CFIUS expressed concerns, believing that the deal could lead to a decline in U.S. steel production and pose a national security threat. However, due to a lack of consensus within the committee on whether to block the acquisition, it chose not to provide a formal recommendation on whether the deal should be allowed.