Japan's largest business lobbying group calls on the US to conduct a fair review of Nippon Steel's acquisition of US Steel

Recently, Japan's largest business lobbying group, the Keidanren (Japan Business Federation), issued a statement on Nippon Steel Corporation's (Nippon Steel) acquisition of US Steel Corporation, calling on the US to conduct a "fair review."

In December last year, Nippon Steel announced that it would spend more than $14 billion to acquire US Steel. This transaction has sparked many controversies and faced numerous obstacles in the United States. According to Reuters, the Biden administration of the United States said in a letter to Nippon Steel last week that this acquisition will pose a "national security risk" to the US steel industry and may lead to a "decline in domestic steel production capacity" in the United States. The supply of steel needed for its transportation, infrastructure, construction and agricultural projects may be "interrupted" as a result. US Vice President Harris also expressed the hope that US Steel will continue to be "owned and operated by Americans." US Republican presidential candidate Trump has also promised to block this transaction if elected.

In this context, the Keidanren said in a statement on September 6 local time that the acquisition plan "has aroused great interest from Japanese companies, especially those considering investing in the United States," and emphasized that "sincerely hope that the review process can be carried out in accordance with the law with maximum integrity and fairness." An official of the Keidanren said that "I don't understand why the US government wants to block this transaction. If the transaction is rejected, the reasons should be focused on."

Nippon Steel has said that the acquisition will help the United States cope with "competitive pressure" from China and promised to invest billions of dollars to maintain and upgrade the facilities of US Steel and not interfere with US Steel's decisions on trade issues. However, the US still expresses concerns about this acquisition on the grounds of "national security risks."

The Japanese political circles are also worried about this move by the US. The next prime minister candidate Shigeru Ishiba believes that this measure by the US is "very disturbing" and may damage trust between allies. Chief Cabinet Secretary Yoshimasa Hayashi said that the transaction negotiations are still ongoing and hopes to resolve it in a mutually beneficial way. The review result of this acquisition case not only concerns the future of the two companies but will also have an important impact on US-Japan relations and the business environment of the two countries. All parties are closely watching its subsequent progress.