While a Japanese company announced that it would purchase U.S. Steel, a leading U.S. steel company, both President Joe Biden and former President Donald Trump, who are competing in the U.S. presidential election in November, expressed their opposition. It has become clear that not only China but also its key ally Japan is no exception when it comes to economic security and jobs, raising the possibility that the acquisition of US Steel will face difficulties.
According to the Nippon Keizai Shimbun on the 5th, the United States Steel Workers’ Union (USW) announced that it had received a promise from President Biden to support (opposition to the acquisition) regarding Japan Steel’s acquisition of US Steel.
The union said, “(The acquisition of Nippon Steel) puts the interests of union members and the country at risk,” and added, “We have received personal assurances from President Biden that he will support us.” The White House had a somewhat ambiguous attitude toward the US Steel acquisition late last year, saying, “We are carefully watching the results of the investigation and are prepared to take appropriate action,” but President Biden has directly expressed his opposition.
Previously, former President Trump said, “We will immediately and unconditionally block (the Japanese takeover),” adding, “It is too terrible for US Steel to be sold to Japan.” “We want to bring jobs back to America,” he said. Some interpret that President Biden’s attitude changed out of consideration for the labor union after former President Trump, a strong candidate for the opposition Republican Party’s presidential election, publicly opposed the acquisition of US Steel.
In the United States, there is great resistance to the sale of US Steel, a symbol of the US steel industry with 122 years of history, to Japan. There are also concerns about weakening the steel industry base and technology outflow. Michigan and Pennsylvania, where US Steel plants are located, are considered battlegrounds in this US presidential election. For this reason, both President Biden and former President Trump are risking their lives on gaining the support of workers in this region.
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.