President Joe Biden has decided to block Nippon Steel’s acquisition of U.S. Steel, a move that has sparked controversy over its impact on U.S.-Japan relations and national security. The decision followed a December 23 report by the Committee on Foreign Investment in the United States (CFIUS), which flagged risks such as reduced domestic steel output and increased vulnerability to unfair trade practices. Despite Nippon Steel’s efforts to address concerns, including offering the U.S. government veto power over production cuts, the White House remained unconvinced. The decision has drawn legal threats from Nippon Steel and U.S. Steel, claiming improper government procedures. The action reflects a broader debate on preserving domestic industrial capabilities amid global competition and election-year pressures. Continue here.
