(TheRedAlertNews.com) – In a lame-duck move that has been labeled as “shameful,” President Joe Biden has decided to block the $14.9 billion U.S. Steel sale to Japan’s Nippon Steel.
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This decision, justified by national security concerns, has U.S. Steel CEO David Burritt questioning the motivations behind Biden’s actions.
The repercussions seem to strain both the relationship with Japan and America’s industrial competitiveness.
Biden cited national security and critical supply chain risks as reasons for blocking the deal.
This decision marks a significant use of executive power, departing from the open investment traditions of the U.S. Biden emphasized that maintaining a domestically owned steel industry is vital for the nation’s security and supply chain resilience.
Despite these arguments, the decision appears to cater to union interests, reflecting a political promise to the United Steelworkers union.
David Burritt did not hold back, describing Biden’s decision as “shameful and corrupt,” insinuating it as a political favor to a disconnected union leader.
Accusations arose about potential Chinese benefits from this action, threatening U.S. Steel’s competitiveness and future.
Burritt, alongside Nippon Steel, has hinted at potential legal actions, alleging that the review process was skewed for political gain.
The controversy has raised concerns for future U.S.-Japan investments.
The Japanese government, along with Nippon Steel, expressed their frustration, labeling the decision as “incomprehensible” and politically motivated.
As U.S.-Japan relations strain, the looming threat of factory closures due to lack of investment casts a shadow over the American workforce, despite promises not to cut jobs.
The United Steelworkers union sees Biden’s decision as a safeguard for the industry’s long-term viability.
David McCall, a union president, praised Biden for his commitment to American workers and a strong domestic steel industry.
U.S. Steel with harsh rebuke of President Biden’s decision to block the Nippon takeover. The company and Nippon accuse Biden of “a clear violation of due process” says “the process was manipulated to advance President Biden’s political agenda.”
And that “Following President… https://t.co/jXRWJf6E5u— Sara Eisen (@SaraEisen) January 3, 2025
Yet, critics suggest that this move, influenced by Pennsylvania’s significance as a swing state in the upcoming election, demonstrates the political undercurrents defining such decisions.
“The Chinese Communist Party leaders in Beijing are dancing in the streets,” Burritt said.
“We needed a President who knows how to get the best deal for America and work hard to make it happen. Make no mistake: this investment is what guarantees a great future for U.S. Steel, our employees, our communities, and our country. We intend to fight President Biden’s political corruption,” he elaborated, cited by The Daily Wire.
Without a consensus from the Committee on Foreign Investment in the U.S. (CFIUS), Biden’s choice to personally block the deal underlines the decision’s weight and political sensitivity.
Analysts forecast a different outcome under a future administration, possibly renewing negotiations with varied terms.
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