Despite recent blow, Japan won't stop trying to invest in the US
Joe Biden was gearing up to stop Japanese steel-maker Nippon Steel from acquiring Pittsburgh-based US Steel, top Japanese officials repeatedly warned that quashing the merger would hinder economic ties between the allies.
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In September, Japan's biggest business lobby, Keidanren, said America's investability would be tarnished if Nippon Steel's $15 billion bid was blocked. Prime Minister Shigeru Ishiba of Japan reached out to Biden asking him to approve the deal during what he called a critical juncture. And in the United States, during a heated presidential campaign, Biden and his opponent, Donald Trump, came out against the Japanese acquisition of US Steel, an iconic American company in a key electoral state.
Biden on Friday stopped the merger from going forward, arguing that foreign control of US Steel would jeopardize America's national security. It was his responsibility «to block foreign ownership of this vital American company,» he said in a statement.
The move, after months of lobbying, is a blow to Nippon Steel, which remains keenly interested in expanding its operations in the United States. It also sends a worrying sign to Japanese businesses about the perils of US politics.
Still, Biden's decision is not expected to slow attempts by other Japanese companies from seeking to do deals in
