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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Rescue Efforts Underway After Deadly Earthquake Hits Tibet
A powerful earthquake struck Tibet on Tuesday, killing at least 126 people and injuring 188 others, as rescue workers continue to search for survivors in the affected areas. The 7.1 magnitude quake, which hit the northern foothills of the Himalayas at around 09:00 local time, caused extensive damage, with more than 1,000 buildings reported as destroyed.
The earthquake, centered in Tingri county, near Mount Everest, was felt in neighboring Nepal and parts of India. Chinese state media reported that the earthquake’s impact was devastating, with significant destruction seen in Shigatse, Tibet’s second-largest city. Videos aired by China’s state broadcaster CCTV showed collapsed buildings, rubble-filled streets, and rescue teams distributing blankets to those displaced by the tremors.
Temperatures in the region were already plummeting, with forecasts predicting lows of -16°C (3.2°F) overnight, adding to the challenges faced by both survivors and rescuers. “Here the houses are made from dirt, so when the earthquake came, many houses collapsed,” said Sangji Dangzhi, a local supermarket owner whose home was damaged. He described ambulances rushing the injured to nearby hospitals throughout the day.
As the search for survivors continues, authorities are contending with disrupted power and water supplies, and aftershocks continue to shake the region. More than 40 aftershocks were recorded in the first hours following the initial earthquake, adding to the instability. Though there is a risk of another quake, Chinese officials have stated that the likelihood of a larger earthquake is low.
The epicenter of the quake lies in Tingri county, a popular base for climbers preparing to ascend Mount Everest. Scheduled sightseeing tours were cancelled, and tourists were evacuated to safety as a precaution.
The quake’s impact has been felt beyond Tibet, with neighboring Nepal experiencing strong tremors, although no major casualties or damage were reported. In the aftermath, many residents in Kathmandu, Nepal’s capital, recalled the deadly 2015 earthquake, which claimed nearly 9,000 lives.
In Tibet, the Shigatse region, which is home to 800,000 people, has been the focal point of recovery efforts. The region is also the spiritual seat of the Panchen Lama, one of Tibetan Buddhism’s most important figures. The exiled Dalai Lama offered his condolences, expressing his deep sorrow for the victims and wishing for the swift recovery of the injured.
Chinese President Xi Jinping has called for all-out search and rescue operations, and the Chinese air force has deployed drones to assist in the relief efforts. Meanwhile, rescue teams continue to work under extreme conditions, racing against the clock to locate survivors before the freezing temperatures set in.
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