Nippon Steel Rejection Shows National Security Means Whatever You Want

Published On Jan 3, 2025, 5:27 PM

The Biden administration has blocked a $14.1 billion takeover of United States Steel Corp. by Japan's Nippon Steel Corp. due to national security concerns. This reflects a significant shift in U.S. policy, increasingly viewing foreign investments—even from allies like Japan—as potential threats. Biden cited the Defense Production Act as a basis for the decision, suggesting that even economic decisions tied to strategic supply chains are now under scrutiny. This has raised concerns about the broader implications for foreign direct investment, especially coming from Japan, which is a key player in the U.S. economy and provides nearly one million jobs.