A number of Rust Belt senators have voiced their disapproval of the ties between the CCP and the Japanese firm Nippon Steel, which is preparing to buy US Steel.
In December of last year, the announcement of a significant agreement for about $15 billion between U.S. Steel and Nippon Steel Corporation was made. As part of this agreement, the biggest steelmaker in Japan purchased the world-famous American steel firm.
The Pittsburgh, Pennsylvania-based steelmaker U.S. Steel was instrumental in the Allied triumph over the Axis powers—including Imperial Japan—during World War II; hence, the acquisition is paramount.
Senators Bob Casey (D-PA), J.D. Vance (R-OH), and Sherrod Brown (D-OH) have written to President Joe Biden’s staff to express their disapproval of Nippon Steel’s ties to China. The senators cite a study outlining the relevant links as coming from the business Horizon Advisory.
Japan is an increasingly important market for Nippon because of its direct activities there. The PRC’s industrial base is a potential target of technology and production know-how sharing, which is a source of worry. The history of Nippon’s assistance in forming and growing China’s steel industry is extensive. The Japanese conglomerate is often acknowledged as a significant player in the Chinese discussion of industrial modernization. Having become the world leader in steel production, China’s peers look to Nippon for strategic advice on continuing to build their sector.
Vance is pleading with Biden to stop the purchase in its tracks.
He said the potential acquisition of one of the significant American steelmakers by an outside company with ties to the Chinese Communist Party and its military-industrial infrastructure is cause for alarm. The president must reject this arrangement without delay.
Even though Biden has spoken out against the purchase, Coalition for a Prosperous America member Michael Stumo stressed that Biden must back up his statements with actions.
In addition to helping the Allies win WWII, U.S. Steel was a significant factor in America’s rise to the position of global steel production. Pennsylvania became known as the steel capital of the United States during this period.
