Keidanren Raises Concerns Over Potential Political Interference in Nippon Steel Acquisition Review

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Keidanren Raises Concerns Over Potential Political Interference in Nippon Steel Acquisition Review

Concerns Raised Over Potential Political Interference in Nippon Steel Acquisition Review

Japan's largest business organization, Keidanren (Japan Business Federation), has expressed concerns to U.S. Treasury Secretary Janet Yellen regarding potential "political interference" in the review of Nippon Steel Corp.'s acquisition of U.S. Steel by the Committee on Foreign Investment in the United States (CFIUS).

Keidanren, along with other business groups, sent a letter to Yellen on September 11th, expressing their fear that the CFIUS process is being used to advance political agendas unrelated to national security, potentially jeopardizing the U.S. economy and workers. They emphasized the importance of CFIUS remaining focused solely on safeguarding national security while upholding economic openness.

Media reports suggest that CFIUS is likely to recommend that President Biden block the acquisition due to national security concerns. The letter, co-signed by the Global Business Alliance, the U.S. Chamber of Commerce, and other organizations, including 21 Japanese companies, urges CFIUS to avoid becoming a tool for political maneuvering or disguised industrial policy. They emphasize the need to ensure that political interference does not undermine America's investment climate.