Tokyo silent on Nippon-US Steel deal to avoid meddling

The Japanese government is withholding any comment on the politically fraught acquisition of US Steel by Japan's Nippon Steel because it will create meddling, the country's trade and industry (Meti) minister said.

Since Nippon Steel announced its $15bn deal to acquire US Steel in December 2023, Tokyo has remained silent despite it evoking bitter political and industrial debate. This is because any governmental comment will cause "interference in the internal affairs", Meti minister Ken Saito said on 13 September.

The acquisition is facing stiff resistance from US vice-president and Democratic presidential nominee Kamala Harris who said on 2 September in Pittsburgh that "US Steel should remain US-owned and US-operated".Republican presidential nominee Donald Trump criticised the deal in February, vowing to block the sale. Criticism from both candidates is seen as an attempt to gain the support of US labour unions for their presidential election ambitions.

The deal is currently under review by the Committee on Foreign Investment in the United States (CFIUS), with US President Biden possibly considering vetoing the deal.

The Japanese business federation Keidanren responded with an open letter to US treasury secretary Janet Yellen, who chairs the CFIUS, expressing concern about "political pressure being brought to bear" on the committee.

"We fear that the CFIUS process is being used to further political agendas that are outside the committee's purview and putting the US economy and workers at risk", the letter said. "It is critical that CFIUS remain solely focused on defending US national security while championing economic openness. That was the standard set when Congress codified CFIUS in the 1980s".

Meti minister Saito did not make any further direct comment on the deal, only to reiterate that each and every transaction by US and Japanese companies are the building blocks for astrong and resilient bilateral economy.

By Yusuke Maekawa