US President Joe Biden’s rejection of Nippon Steel’s $15 billion bid for US Steel has sparked frustration among Japan, Washington’s key ally in Asia. The decision to block the friendly acquisition on national security grounds is seen as a betrayal by many in Japan, who view it as an attempt to restrict Japanese investment and trade.
During a visit to Tokyo, Secretary of State Anthony Blinken sought to smooth ruffled feathers, stating that the alliance with Japan has “grown stronger than ever before.” However, the assertion that the proposed deal could threaten US national security has stung. Many in Japan see this as an attempt to undermine their own economic interests and limit their access to key industries.
Japanese Prime Minister Shigeru Ishiba warned that spoiling the deal might hurt Japanese investment in the US, while Trade Minister Yoji Muto described the decision as “very regrettable.” The rejection has damaged trust between the two countries, with some critics labeling it as a case of Washington treating Japan like its rival China.
This move follows decades of negotiations that have led to significant trade liberalization in Japan. Japanese companies, including automakers and manufacturers, have invested heavily in US factories, creating thousands of jobs. The Biden administration’s decision has sparked concern that this momentum is being reversed, with many fearing that future investment will be discouraged.
Nippon Steel and US Steel have filed a federal lawsuit challenging the Biden administration’s decision, citing potential economic benefits for American workers. The case highlights the complex web of trade relationships between Japan, the US, and China, as well as the growing tensions in the Asia-Pacific region.
Source: https://apnews.com/article/japan-us-steel-alliance-security-trade-6bdf99e861ac928c03b3b24c4d18cd65