Japan and the US Urged to Collaborate on Steel Industry Amid China Competition

Leading prime ministerial candidate Shinjiro Koizumi advocates for Japan and the U.S. to avoid confrontation over the steel industry and collaboratively address challenges from China's steel market. Amid election campaigns and Nippon Steel's $14.9 billion bid for U.S. Steel under U.S. review, Koizumi calls for diplomatic restraint and new dialogues with North Korea.

Japan and the United States should steer clear of a confrontation over the steel industry and rather collaborate given the competitive pressure from China. This was the message from Shinjiro Koizumi, a leading contender for Japan's prime ministership, during a debate on Saturday.

According to sources, a crucial U.S. national security panel is currently reviewing Nippon Steel's $14.9 billion bid for U.S. Steel, with a September 23 deadline to advise the White House. Koizumi urged both nations to tackle the shared challenge posed by China's steel industry, which often exports cheaper steel produced without renewable or clean energy.

On Sunday, Nippon Steel and U.S. Steel reached out to President Biden regarding their merger, a deal also scrutinized by both Democratic and Republican presidential candidates. Koizumi emphasized the importance of maintaining diplomatic prudence, especially during the election period.

(With inputs from agencies.)