Biden Blocks Nippon Steel’s Bid for US Steel, Raising Concerns Over US-Japan Relations
President Joe Biden has blocked Japan’s Nippon Steel from acquiring US Steel in a $15 billion deal, citing national security concerns. The decision has sparked backlash from both companies and raised questions about the future of US-Japan economic relations.
In a statement on Friday, Biden emphasized the importance of maintaining US control over key industries. “We need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” he said.
The move aligns with a campaign promise Biden made to prioritize domestic industry, but it has drawn criticism from Japan. A Japanese government source told Euronews that Nippon Steel’s acquisition aimed to combine advanced technologies from both countries, bolstering competitiveness while preserving US steel production capacity and jobs.
The source added that the decision could undermine the growing trend of Japanese investment in the United States and expressed “strong concerns” about its impact on economic ties. “It is regrettable that this decision was made due to national security concerns,” the source said, urging the US to work with its partners to address such issues.
Corporate and Political Backlash
Nippon Steel and US Steel condemned the decision in a joint statement, accusing Biden of manipulating the process to serve political ends. “This represents a clear violation of due process and the law,” the companies said, adding that they are exploring legal action to protect their interests.
The statement dismissed Biden’s justification, claiming there was no credible evidence of national security risks. The companies warned that the decision “sends a chilling message” to allied nations considering significant investments in the US.
The controversy follows the Committee on Foreign Investment in the United States (CFIUS) failing to reach consensus on the deal last month. CFIUS submitted its report to Biden, who had 15 days to decide.
Impact on US-Japan Relations
The decision comes just weeks before Biden leaves office and may strain ties with Japan, a key US ally in Asia and its largest foreign holder of US debt. Critics argue that the move undermines trust in economic collaboration between the two nations.
The rejection has also drawn criticism from conservative lawmakers and business groups like the US Chamber of Commerce, which had supported the deal. Nippon Steel had garnered support from some Steelworkers union members and local leaders near its US operations.
Nippon Steel, the world’s fourth-largest steelmaker, sought the acquisition to enhance its global standing. US Steel, ranked 24th in 2023 by the World Steel Association, would have benefited from the partnership’s technological and operational synergies.
The fallout from Biden’s decision could have lasting implications for foreign investment and US industrial policy.
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Sushi Restaurateurs Pay $1.3 Million for Bluefin Tuna at Tokyo Auction
Sushi restaurateurs in Tokyo have spent a record sum of 207 million yen ($1.3 million, £1 million) for a bluefin tuna, making it the second-highest price ever paid at the prestigious New Year auction held at the Toyosu Fish Market.
Onodera Group, which placed the winning bid, purchased the tuna, which weighs a hefty 276 kg (608 lbs) and is roughly the size and weight of a motorbike. The fish was caught off the coast of Aomori, located in northern Japan.
Shinji Nagao, a representative of Onodera Group, shared the group’s excitement after securing the prized catch, saying that the tuna would be served at its Michelin-starred Ginza Onodera restaurants, as well as at Nadaman restaurants across the country. “The first tuna is something meant to bring in good fortune,” Nagao said, adding that he hoped customers would enjoy the meal and “have a wonderful year.”
Onodera Group has been the top bidder in the Ichiban Tuna auction for five consecutive years, with the latest purchase setting a new high for the group. Last year, the group paid 114 million yen for the winning tuna.
The highest auction price recorded since 1999 was 333.6 million yen, which was paid in 2019 for a slightly larger tuna weighing 278 kg. This record was set by sushi restaurant owner Kiyoshi Kimura, who is known as Japan’s “Tuna King.”
Toyosu Fish Market, which opened in 1935 and claims to be the largest fish market in the world, is renowned for its early-morning tuna auctions. The auction typically attracts high-end sushi restaurateurs and fishmongers who are eager to secure top-quality tuna to serve at their restaurants.
While the bluefin tuna dominated headlines, it was not the only prized catch at the auction. Hokkaido sea urchins also fetched a record-breaking 7 million yen, highlighting the market’s diverse offerings.
The annual auction is more than just a business event; it has become a symbol of Japanese culture, particularly in the world of sushi, where the first tuna of the year is seen as a good-luck charm for the coming months.
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