Another win for economic nationalism, but a loss for America
Nippon Steel’s failed takeover of US Steel shows that the country is moving away from the free trade policies of earlier administrations
US PRESIDENT Joe Biden’s decision to block the friendly US$15 billion takeover by Japan’s Nippon Steel of the foundering US Steel – a move supported by president-elect Donald Trump – is another demonstration that Washington is moving away from the free trade policies of earlier Democratic and Republican administrations and embracing an economic nationalist agenda.
President Biden’s action came after a Dec 23 report by the Committee on Foreign Investment in the United States (CFIUS) that stated that it could not reach a consensus on the risks of the Nippon deal.
The deal made sense from the perspective of US Steel and its workers. Nippon Steel promised US$2.7 billion in capital to help modernise US Steel’s ageing plants, including Mon Valley Works, the company’s oldest mill, and to honour collective-bargaining agreements, in addition to offering workers US$5,000 in bonuses.
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