Blocking of steel deal belies Japan's 'buddy' status
Reportedly, Nippon Steel is set to file a lawsuit in response to United States President Joe Biden blocking the Japanese company's $14.1 billion takeover of US Steel.
The two companies think Biden's decision violates due process under the US Constitution and the law governing the Committee on Foreign Investment in the US. Biden on Friday also urged the two steelmakers to "fully and permanently" abandon their plan.
The lawsuit will argue that the Biden administration has not presented sufficient evidence to prove the proposed acquisition poses a threat to US national security.
In a joint statement, the two companies said the US authorities' review of the international buyout project was "manipulated to advance President Biden's political agenda", as it is clear that it was actually due to the huge pressure from the United Steelworkers union that Biden blocked the deal. The largest workers' union in North America is actively pushing back against the purchase, citing inadequate commitments to sustaining US production.
No wonder Japan's Minister of Economy, Trade, and Industry Yoji Muto said, "It is incomprehensible and regrettable that this kind of decision has been made on the grounds of concerns over national security". The Japanese government regarded the deal as one "that would benefit both countries", Muto said in a statement.
The Japanese side has enough reasons to feel betrayed and deserted at Biden citing "national security" concerns for his decision, because that's the pretext his administration has given when trying to persuade Japan to compromise its interests by targeting entities from China with export restrictions. In exchange for such cooperation, Japan looked forward to reaping the reward of deepened US trust in it and as a consequence a favorable position in the US' "small yard with high fences".
In a joint statement released by Biden and then Japanese prime minister Fumio Kishida during the latter's last visit to the US in April shortly before his sudden step-down as the Japanese leader, the two sides claimed "the US-Japan Alliance has reached unprecedented heights... we celebrate this new era of US-Japan strategic cooperation... and pledge that the United States and Japan will continue our tireless work, together and with other partners, to realize a free and open Indo-Pacific and world".
Tokyo should be clear now that the Biden administration has never viewed Japan as a reliable ally, but only as an expendable piece on its geopolitical chessboard.
GUANCHA.CN
