The United States is obstructing a bid by Japan's Nippon Steel to acquire US Steel on the grounds of "national security", employing language often reserved for their common perceived threat: China.
The episode has cast a pall over US-Japan ties, even as Japan's Prime Minister Fumio Kishida - who has entrenched his country's position as the superpower's key ally in Asia - is due to visit the US for his farewell tour before stepping down in October.
Nippon Steel, the world's fourthlargest steelmaker, announced in December 2023 that it intended to buy US Steel.
But the potential US$14.9 billion (S$19.3 billion) sale has run into opposition from US President Joe Biden as well as US Vice-President and Democratic presidential nominee Kamala Harris.
US Steel should "remain American-owned and operated", Ms Harris said on Sept 2.
"I will stop Japan from buying United States Steel," former US president Donald Trump said in August, sending US Steel shares plunging by 6 per cent in one day.
Japanese officials are vexed by the offhand use of rhetoric that blatantly calls into question Japan's status as America's closest ally and most stalwart advocate for US interests in the Indo-Pacific.
Experts blame the episode on awful timing on Nippon Steel's part and political expediency in the US.
On Aug 31, in a letter to both companies, the inter-agency Committee on Foreign Investment in the US (CFIUS), which vets foreign buyers for national security risks, said the deal would create such risks and hurt the supply of steel needed for critical transportation, infrastructure, construction and agriculture projects.
Nippon Steel is now making a last-ditch attempt to salvage the deal to buy US Steel, the world's 24th-largest steel producer, amid reports that a presidential order halting the deal was imminent.
Bu hikaye The Straits Times dergisinin September 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Straits Times dergisinin September 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
HIT THE RAILS ON A BIKE
It is always a thrill to pull out of a train station and feel yourself picking up speed, wheels click-clacking over the rails.
From drugs, jail and bankruptcy to social enterprise cafe for ex-offenders
Drugs. Bankruptcy. Failed marriages. And prison. But Mr Matthew Poh is not letting his past define him.
Small Rain finds great intimacy amid medical isolation
How has the Covid-19 pandemic shaped literary fiction? American novelist Garth Greenwell's turn from two erotically charged novels set in Bulgaria to his latest – a pandemic novel set in the sexless emergency ward of an Iowa hospital – offers answers.
Grab Singapore's managing director listens to audiobooks
Mr Yee Wee Tang, 48, managing director of Grab Singapore, recently announced that the company has upgraded its Grab Benefits 2.0 programme and will spend $4 million a year on welfare for drivers and delivery workers who use the platform.
Japanese author inspired by external environs
Ko Shinjo is behind the novel that inspired Netflix hit Tokyo Swindlers
Gen Z couples say no to hawker centre first dates
In the light of a Bumble survey, The Sunday Times speaks to four couples to find out how dating etiquette has evolved over the years
Let's Talk About Death Who will care for my sister when I die?
Let's Talk About Death is a five-episode docuseries that follows several millennials and their loved ones as they navigate end-of-life planning, and seeks to kick-start honest conversations about death and dying well.
Maeder, kitefoiling get sweet Yeo's bundle deal
An already momentous year for Singapore's kitefoiler Maximilian Maeder got even better on Nov 9, when local food and beverage company Yeo Hiap Seng (Yeo's) extended their sponsorship deal by another four years from 2025 to 2028.
CAVENDISH'S FINAL RACE
Legend confirms that S'pore Criterium is his swansong - and he wants to claim it
Improving Chelsea can beat any team, says Maresca
UP FOR THE FIGHT
