US senator calls on Biden to review alleged Nippon Steel links to China
- In Reports
- 04:38 PM, Apr 03, 2024
- Myind Staff
Sherrod Brown, the head of the US Senate Banking Committee, has urged the Biden administration to investigate the purported connections between Nippon Steel and the Chinese steel industry.
Brown has raised bipartisan concerns in Congress regarding Nippon Steel's proposed $14.9 billion acquisition of US Steel Corp, citing potential threats to national security.
The request for investigation follows an April report by consultancy Horizon Advisory, which pointed out alleged connections between Nippon Steel and Chinese state-backed steel companies.
"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," Reuters quoted Brown as saying.
He also highlighted concerns about Nippon Steel's historical support for China's steel industry and its current operational presence in the country.
Brown, a Democrat from Ohio, is running for re-election in the upcoming election on 5th November. However, Nippon Steel has strongly denied the allegations presented in Horizon Advisory's report.
The company asserted that the report contained "numerous inaccuracies and misrepresentations" and emphasized that its operations in China represented only 5 percent of their global production capacity, indicating their limited scope.
Furthermore, Nippon Steel clarified that its investments in China do not confer control to Chinese partners over its operations beyond China, including research and development activities.
According to Horizon's report, Nippon Steel has a historical involvement in supporting the development of China's steel industry and maintains operational ties with several Chinese state-backed steel enterprises.
Brown expressed concern over Nippon Steel's connections to China's military-civil fusion strategy and its pursuit of global economic influence.
President Joe Biden previously stated that US Steel should remain domestically owned, while his opponent in the upcoming presidential election, former President Donald Trump, pledged to halt the proposed Nippon Steel acquisition if elected.
Currently, the White House has not issued a response to Brown's call for scrutiny, and Horizon Advisory has not provided any comments in response to requests for clarification.
Image source: Reuters
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