President Joe Biden, citing national security concerns, has blocked the sale of Pittsburgh-based U.S. Steel to Nippon Steel of Japan.
In a statement published January 3, President Biden said, “A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains.”
President Biden announced his decision to reject Nippon Steel’s offer after the Committee on Foreign Investment in the United States, or CFIUS, made up of national security and trade experts across the executive branch, raised the potential of risks to U.S. national security and critical supply chains.
“We need major U.S. companies representing the major share of U.S. steelmaking capacity to keep leading the fight on behalf of America’s national interests,” President Biden said.
White House Press Secretary Karine Jean-Pierre pointed to the unfair trade practices of the People’s Republic of China as a key element in President Biden’s decision to keep U.S. Steel “a proud American company.”
“As foreign competitors like China distort global steel markets through unfair trade practices, such as dumping and overproduction, it is critical that we have a strong domestic steel industry that protects our national security and our supply chains. Today, the president demonstrated once again that he will always act to protect the security of this nation, as well as the resilience of our supply.”
U.S. National Security Communications Advisor John Kirby emphasized that the President’s decision to block the sale of U.S. Steel to Nippon Steel “is not about Japan. This is about U.S. steelmaking and keeping one of the largest steel producers in the United States an American-owned company. It is not about the extraordinary, close relationship and alliance that we have with Japan. And the President has said so and made that clear to leaders in Japan on several occasions.”
In his statement President Biden declared, “It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad. ... Today’s action reflects my unflinching commitment to utilize all authorities available to me as President to defend U.S. national security.”
