Dressed in fragrant clothes and adorned with shadows, the lights are red and the wine is green. On Wednesday, social celebrities from the US technology, finance, and media industries gathered at the White House to attend a state banquet welcoming Japanese Prime Minister Fumio Kishida's visit to the United States, reflecting the White House's emphasis on the security and economic alliance between the US and Japan.
However, there was an unexpected guest at this state banquet - David McCall, the chairman of the United Steelworkers of America, who was at the forefront of US Japan relations due to a corporate merger case.
The large Japanese steel company Nippon Steel has been preparing to acquire American Steel since last year, but this has been repeatedly blocked by the United Steelworkers, who claimed to want an American company to take over American Steel.
The powerful union forces subsequently brought Biden to an end. Biden previously expressed support for the views of the United Steelworkers of America and hoped that an American company could step forward to acquire American steel.
But both American Steel and Nippon Steel have actually expressed a strong willingness to cooperate, which has led other American companies that are unwilling to offer higher prices to withdraw from the negotiations.
This has resulted in almost no other bidders for American steel besides Nippon Steel. Once the deal with Nippon Steel fails, American steel will have to face a future of low-priced sales, which makes investors in the capital market very frustrated.
What's even more ironic is that at a press conference jointly held with Japanese Prime Minister Fumio Kishida, Biden reiterated his support for the demands of the Federation of American Workers and that the acquisition of American steel by Nippon Steel will be further scrutinized. This statement became particularly dramatic against the backdrop of the nearby Kishida.
Understanding the Confused Play of People
After Biden's "brilliant" speech, Kishida also stated that Japan has learned that Nippon Steel and the United Steelworkers of America are in negotiations, and Japan believes that the US government will comply with relevant procedures in accordance with the law.
The so-called relevant procedures refer to Nippon Steel undergoing review by the Committee on Foreign Investment in the United States (CFIUS). This institution is not unfamiliar to many countries that have suffered from US business investigations, but interestingly, this time it has actually targeted its allies in the United States.
It is currently unclear when CFIUS will make a decision, but informed sources warn that the decision may be delayed until the end of 2024 or even early next year. In addition, US regulatory agencies are also investigating more information on antitrust grounds, and the results are likely to be available only after the end of the US presidential election in November.
This also clearly indicates that both the White House and other members of the US political community are now opposing the acquisition of Nippon Steel, seeking significant influence from the union in the election.
The only thing that can provide comfort to Nippon Steel and American Steel is that the United Steelworkers of America has loosened its stance a lot and is willing to negotiate with Nippon Steel in exchange for more worker protection. This may give hope for an early ending to this political farce.