An executive order meant to halt Nippon Steel's acquisition of U.S. Steel inadvertently included incorrect language from an unrelated real estate directive involving China, raising eyebrows about its preparation.
The Daily Caller reported that the decision to block the $15 billion acquisition stems from national security concerns, reflecting the administration's broader commitment to preserving domestic control over a crucial industry.
President Biden made the move on Friday, issuing an order preventing Japanese corporation Nippon Steel from acquiring U.S. Steel, one of the largest steel producers in America.
This decision aligns with the administration's stance on safeguarding national interests.
The order's intention was clear, but it confusingly started with language taken from a prior decree on Chinese real estate, an error that sparked conversations about its creation process. The mistake has not yet been publicly addressed by the White House, as the Daily Caller's inquiries remained unanswered by the time of publication.
Biden underscores that the block is part of a comprehensive effort to "defend U.S. national security." He expressed concern that transferring control to Nippon Steel would place a substantial portion of American steelmaking under foreign oversight.
Nippon Steel had presented its intentions to buy U.S. Steel on January 5, 2024, with an offering of $14.9 billion. This acquisition bid prompted a thorough national security evaluation in December. However, no agreement was reached among the reviewing parties about the potential risks.
Consumer safety and the stability of key supply chains stand at the forefront of the administration's aims.
Biden noted the assessment by experts across the executive branches emphasized the threat: “This acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.”
The President's remarks further portray his dedication to maintaining American dominance in important sectors. Biden emphasized the necessity for major domestic firms to sustain leadership: “We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests."
Disruptions in supply chains have been a consistent worry during Biden's tenure, particularly those critical to infrastructure and defense. The administration views controlling such industries as pivotal to strategic autonomy and economic resilience.
While details about the administrative misstep remain scant, the broader context of the order suggests vigilance towards foreign acquisitions with potential security implications.
The error, however, highlights the need for procedural precision in drafting high-stakes documents like executive orders.
Nippon Steel has not issued a formal statement in response to the block or the procedural blunder involved. The development keeps stakeholders on edge as they anticipate next steps from both the corporation and the administration.
The President’s decisive action is seen as a robust stance on industrial self-reliance. “That is why I am taking action to block this deal,” emphasized Biden, underlining the serious nature of the administration’s resolve in this domain.
Ultimately, the story serves as a reminder of the delicate interplay between international business ventures and national interest considerations. It showcases the administration's readiness to act unilaterally when perceived threats to critical sectors emerge.
