Diplomatic Twist: Japan Urges US Approval for Nippon Steel's Big Move

Japanese Prime Minister Shigeru Ishiba appeals to President Joe Biden to approve Nippon Steel's acquisition of U.S. Steel to maintain strong bilateral relations. The $15 billion deal faces opposition due to national security concerns and is under CFIUS review. Ishiba argues the acquisition benefits both nations.

Japanese Prime Minister Shigeru Ishiba has formally urged President Joe Biden to endorse Nippon Steel's acquisition of U.S. Steel in a bid to preserve flourishing Japan-U.S. relations. Sources informed that the letter, sent on November 20, highlights the importance of this acquisition in continuing Japan's upward investment trend in the United States.

Despite opposition from a significant U.S. labor union and President-elect Donald Trump, Ishiba emphasizes that the acquisition, valued at $15 billion, will not only solidify but also reflect the enduring strength of the bilateral alliance. The Committee on Foreign Investment in the United States (CFIUS) is reviewing the deal due to national security concerns, with a decision expected by next month.

Shigeru Ishiba contends that the collaboration will blend advanced steel technologies and boost employment, benefiting both countries. However, CFIUS has previously indicated potential national security threats. The outcome could set a precedent for future foreign investments, impacting diplomatic relations between the allied nations.

(With inputs from agencies.)