Japan PM Ishiba tells Biden of ‘strong’ concerns over blocked steel deal
Sign up now: Get ST's newsletters delivered to your inbox
Nippon Steel had touted the acquisition as a lifeline for US Steel, but opponents warned that the Japanese giant would slash jobs.
PHOTO: AFP
Follow topic:
TOKYO - Japanese Prime Minister Shigeru Ishiba told US President Joe Biden that his blocking of Nippon Steel’s takeover of US Steel has raised “strong” concerns in both countries, according to local media reports on Jan 13.
The comments came during a three-way call with Philippine President Ferdinand Marcos Jr that, according to the White House, also touched on China’s “dangerous and unlawful” behaviour in the region.
Citing national security concerns, Mr Biden nixed Nippon Steel’s US$14.9 billion (S$20.5 billion) acquisition of US Steel
“I said that strong voices of concerns are being raised not just in Japan, but also in the US business community, and I urged (Biden) to dispel these feelings,” Mr Ishiba said after the call.
Blocking a takeover by a Japanese firm is highly unusual, and both firms have launched legal action
Nippon Steel had touted the acquisition as a lifeline for US Steel, but opponents warned that the Japanese giant would slash jobs – despite its assurances to the contrary.
The takeover proposal, which was announced in 2023, came in the run-up to 2024’s US presidential election and proved to be a political flashpoint.
US Steel is based in the swing state of Pennsylvania, and both presidential candidates – Republican Donald Trump and Democratic Vice-President Kamala Harris – opposed the transaction.
Japanese firms invested almost US$800 billion in the United States in 2023, more than any other country, and 14.3 per cent of the total, according to official US data.
US firms are also the biggest outside investors in Japan.
Japan is also a close strategic ally for the US
Both steel companies said on Jan 12 that the US authorities have extended the deadline for unwinding the acquisition deal to June 18.
Japan’s Foreign Minister Takeshi Iwaya, who will attend Trump’s inauguration as US president on Jan 20, said it was important to see the “big picture” of bilateral ties.
Mr Iwaya also said that while in Washington, he would seek talks with Mr Marco Rubio, slated to be Trump’s secretary of state, and to lay the groundwork for a meeting between Mr Ishiba and Trump.
Kyodo News cited government sources as saying that this could take place before mid-February.
During Trump’s first term, he and Japan’s then Prime Minister Shinzo Abe enjoyed warm relations. In December, Trump met Mr Abe’s widow
In recent years, with an eye on China, the US has sought to improve strategic relations with both Japan and the Philippines, as well as with South Korea.
Mr Biden, Mr Marcos and Mr Ishiba’s predecessor Fumio Kishida held talks at the White House in April 2024.
In another first, in 2023, Mr Biden hosted Mr Kishida and South Korean President Yoon Suk Yeol – who briefly imposed martial law in December – at Camp David.
In 2024, the Philippines ratified a key defence pact with Japan, which allows them to deploy troops on each other’s soil.
On Jan 13, Mr Biden, Mr Marcos and Mr Ishiba “discussed trilateral maritime security and economic cooperation, as well as the People’s Republic of China’s dangerous and unlawful behaviour in the South China Sea”, the White House said.
“The three leaders agreed on the importance of continued coordination to advance a free and open Indo-Pacific,” said a statement, which made no mention of the steel deal.
Mr Marcos’ office said the call was to “reaffirm their commitment to strengthening cooperation in areas such as economic growth, emerging technologies, climate action, clean energy and regional security”.
Mr Biden also “highlighted the ‘historic progress’ made, particularly in maritime security, economic security and technological collaboration” between the three countries, the statement from the Philippines said. AFP
