Japan's PM urges US govt to clarify issue of 'national security' and address steel industry concerns

Japanese Prime Minister Shigeru Ishiba urged the White House on Monday to address the concerns of Japan's industrial sector and clarify the issue of "national security" cited in sinking Nippon Steel's plan for acquiring US Steel.

At a news conference in Ise, Mie Prefecture, Ishiba addressed a question regarding US President Joe Biden's decision against Nippon Steel's proposal, stating, via English translation: "We take this matter very seriously and cannot afford to ignore it. While it would be inappropriate for the Japanese government to comment on individual corporate management cases under review based on US domestic law, we strongly urge the US government to address these concerns".

Biden, in a statement issued on Friday, justified the decision by citing risk for US national security and critical supply chains, emphasizing the importance of keeping one of the country's largest steel producers under domestic control.

In response, Ishiba stressed the need for clarity: "As for why national security is cited as an issue, it must be clearly explained; otherwise, future discussions on the matter will not work. I believe that the points I have just made are very important for our future relationship, no matter how close we are as allies".

Biden's move is not a surprise but could have implications for future foreign investment in US companies, CNN reported.

On the same day, Japan's Minister of Economy, Trade and Industry Yoji Muto expressed strong disappointment over the US government's decision to block the deal, calling it "extremely regrettable and incomprehensible".

Muto acknowledged the concerns raised by Japan's industrial sector in response to Biden's decision and emphasized the need to address these concerns, including providing an explanation of the judgment made during the review process by the Committee on Foreign Investment in the United States.

"Economic relations form the foundation of bilateral ties, and it is crucial to create an environment where companies can make investment decisions with confidence," said Muto.

He told reporters that the Japanese government would consider providing support based on Nippon Steel's future response to the situation. Nippon Steel representatives said they are preparing for a legal challenge against Biden's objection.