Lael Brainard, the director of President Biden’s National Economic Council, has voiced apprehensions regarding the proposed sale of U.S. Steel Corp. to Japan’s Nippon Steel.
U.S. Steel sale
The deal, amounting to $14.9 billion, has prompted calls for heightened scrutiny due to potential implications on national security and supply chain reliability.
Brainard emphasized the historical significance of U.S. Steel Corp., citing its integral role in the United States’ arsenal of democracy during World War II and its continued importance in domestic steel production.
While acknowledging the administration’s open stance towards foreign manufacturers contributing to the American economy, Brainard expressed reservations about a foreign entity, even a close ally like Japan, acquiring this iconic American company.
“The purchase of this iconic American-owned company by a foreign entity— even one from a close ally—appears to deserve serious scrutiny in terms of its potential impact on national security and supply chain reliability.”
Threat to national security
This move has triggered bipartisan concerns among lawmakers who fear the potential relocation of steelworking jobs to low-wage states, a threat to national security, and a weakening of the U.S. industrial sector.
A group of Republican senators has written to Treasury Secretary Janet Yellen, urging the Committee on Foreign Investment in the United States (CFIUS) to intervene and block the sale.
Brainard did not overtly call for a CFIUS investigation, but the sale of U.S. Steel “looks like the type of transaction” the panel established to examine.
Democratic Senator Joe Manchin of West Virginia echoed concerns, stating that the acquisition is a “major blow to the American steel industry” and a “direct threat to our national security.”
As the controversy unfolds, the fate of this high-profile acquisition hangs in the balance, with stakeholders anxiously awaiting the outcome of the mounting concerns over national security and economic impact.
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