financetom
Business
financetom
/
Business
/
US senator urges Biden to review alleged Nippon Steel ties to China
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US senator urges Biden to review alleged Nippon Steel ties to China
Apr 2, 2024 7:55 PM

WASHINGTON/TOKYO (Reuters) -The head of the U.S. Senate Banking Committee on Tuesday urged the White House to scrutinize the relationship between Nippon Steel and the Chinese steel industry, citing national security concerns amid bipartisan opposition in Congress to the Japanese company's $14.9 billion deal to acquire U.S. Steel Corp.

"As you examine this deal, I urge you to thoroughly investigate the allegations raised in this report and examine Nippon's ties to the Chinese government and the danger this merger poses to American national and economic security," Sherrod Brown said in a letter to Biden citing an April report by consultancy Horizon Advisory.

Nippon Steel said in a statement that Horizon's report was "rife with inaccuracies and misrepresentations" and that its operations in China were "very limited", representing less than 5% of its global production capacity.

The White House did not immediately comment. Horizon Advisory did not immediately respond to a request for comment.

Horizon's report said Nippon had a long-run history of supporting the establishment of China's steel industry and that it operated, in whole or in part, nine facilities in China and had active joint ventures with a range of Chinese state-backed steel champions.

"Nippon's connection to the Chinese steel ecosystem and industrial policy agenda has concerning implications regarding ties to China's military-civil fusion strategy and quest for global economic power," said Brown, a Democrat from Ohio who is running for another term in the Nov. 5 elections.

Nippon Steel said the entities in which it invests in China have no control over its operations or business decisions outside of China, and that its Chinese partners do not have any access to information about Nippon Steel's operations, including about its R&D and engineering, outside of China.

The White House sees steel as critical to national security, and Biden said last month that U.S. Steel should remain domestically owned. His opponent in the Nov. 5 presidential election, former President Donald Trump, has promised to block the deal if he wins.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved