27th Parliamentary-Intelligence Security Forum – Economic Security/Trade

Mr. Daniel Bob began by thanking the audience and JC for organizing the event and emphasized the significance of the proposed acquisition of US Steel by Nepon Steel. He framed the issue as one at the intersection of trade security, manufacturing, investment, and the enduring U.S. Japan alliance. He explained that Nepon Steel offered to acquire US Steel about a year ago, promising substantial investments to secure the company’s future. However, the deal faced political opposition from both President Biden and former President Trump, largely because US Steel is based in Pennsylvania, a critical swing state. The review of the deal was referred to the Committee on Foreign Investment in the United States (CFIUS) to evaluate national security considerations, with a decision expected before Christmas.

Mr.Bob noted that while President-elect Trump publicly opposed the deal via Truth Social, promising to block it through tax incentives and tariffs, the practical ability to retroactively stop a deal approved and finalized under Biden is uncertain. He argued that opposition based on foreign ownership is misguided; the focus should be on responsible ownership and the broader strategic and economic benefits. He emphasized that integrating Nepon Steel’s advanced technologies would modernize U.S. mills, strengthen the industrial base, and enhance national security, citing support from Wilbur Ross, former U.S. Commerce Secretary and former US Steel CEO. He highlighted China’s dominance in steel production, which accounted for 54% of global output in 2023, underscoring the need for allied nations to strengthen cooperation. The acquisition aligns with Biden’s Indo-Pacific strategy, reinforcing U.S.–Japan economic and security ties, building resilient supply chains, and reducing reliance on adversaries like China, which has recently restricted exports of critical minerals with military applications. Bob further explained that Nepon Steel’s investment would bring direct economic benefits, including job creation, sustaining existing employment, and revitalizing communities dependent on US Steel operations. He concluded by urging CFIUS and President Biden to approve the acquisition, framing it as a strategic, economic, and geopolitical imperative that strengthens the U.S. Japan alliance, counters China’s rising influence, and signals U.S. commitment to trusted allies.