Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Investing

Nippon Steel and the “National Security” Hoax

by January 3, 2025
January 3, 2025
Nippon Steel and the “National Security” Hoax

Scott Lincicome

Today, President Joe Biden blocked Nippon Steel’s proposed acquisition of US Steel on the grounds that “there is credible evidence” the Japanese steelmaker “might take action that threatens to impair the national security of the United States.” What “credible evidence” might push the president of the United States to block a multi-billion dollar investment in an ailing American steel company by a publicly traded corporation headquartered in one of the United States’ closest allies? Well, Biden never says, perhaps because—as I wrote right before the holiday—there is none:

Nippon Steel wasn’t just paying a big premium for US Steel, but had also pledged to invest at least $2.7 billion in US Steel’s union-represented facilities;
Steel buyers and industry experts in the United States supported the deal because they believed it would improve both US Steel and the domestic steel market. The transaction was backed by thousands of US Steel employees, more than 98 percent of its shareholders, and an independent arbitration panel chosen by the company and the United Steelworkers (USW) union.
Independent national security and foreign policy experts across the political spectrum agree that the arrangement should proceed because it raises no national security concerns. Instead, many of these same people, and many others, believe that the deal would, if anything, bolster US national security and relations with one of our closest allies.
Many US government officials, including the three federal government departments with the most responsibility for and expertise in national security and foreign investment—Treasury, State, and the Pentagon—have concluded that the proposal poses no security risks.

The transaction was and remains a no-brainer, and right after I wrote my column, the Hudson Institute’s William Chou and Paul Sracic published a comprehensive national security analysis of the deal, coming to the same conclusion: 

We examine Nippon Steel’s acquisition of US Steel from industrial, antitrust, labor, technology, trade, national security, and community perspectives. Our research findings determine that this proposed transaction would advance American economic, national security, and political interests at a time when the needs for secure domestic steel production and supply chains are paramount.

Nippon Steel even went so far as to offer the US government unprecedented veto power over the merged entity’s future US plant closure decisions (to alleviate possible concerns that the company would reduce US steelmaking capacity). In the end, however, none of this mattered because, as I documented last month, Biden’s decision wasn’t about “national security” at all. It was about politics—in particular, USW pressure on Biden and other administration officials to block the deal and, as the Pittsburgh Post-Gazette reported last month, US steelmaker Cleveland Cliffs’s herculean lobbying efforts to stymie a possible new competitor in the captive (thanks to tariffs and other protectionism) US steel market.

Given these obvious and widely reported motives, it’s all but certain that Nippon Steel and US Steel will challenge Biden’s decision in federal court. Maybe they’ll win in the end, and maybe the plan—and all those new investments—will be saved. As I wrote last month, however, “the politicization of the Nippon Steel deal and ‘national security’ has potential harms that go way beyond the two companies or even the industry at issue.” In particular, it risks damaging the US investment review process; US-Japan relations; the United States’ position as a welcoming place for foreign investment; nations’ general rule against using “national security” as a guise for political favoritism and economic protectionism; and the US economy itself.

The courts, unfortunately, won’t be able to reverse any of that.

0
FacebookTwitterGoogle +Pinterest
previous post
Salesbots: Revolutionizing Sales Automation for Increased Efficiency
next post
Five months of travel chaos loom as Avanti staff vow Sunday walkouts

You may also like

The Whole DEI Project Is a “McCarthyite Witch...

May 2, 2025

OECD’s Pillar One: A Step Towards Chaos Rather...

October 30, 2023

Immigration Benefits the Destination Country

March 29, 2025

“We Should Be Pro-Market and Pro-Business”—New Book Excerpt

May 19, 2025

Medicaid and Emergency Room Use

July 11, 2023

Big Government Doesn’t Want You to Think about...

June 24, 2024

Trump’s 100-Day Health Scorecard: Mixed Signals and Missed...

April 30, 2025

FISA Reform: Dueling Proposals,Ticking Clock

December 5, 2023

Follow Up on Bank Secrecy Act Data

June 5, 2023

GOP Spending Cuts Too Small

February 18, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved