Japanese Media Says Japan Steel's refusal to Buy US Steel "Fired in U.S.-Japan Relations"

Japanese media reported that U.S. President Joe Biden's refusal to buy U.S. steelmaker U.S. Steel by Japan Steel Co. is causing complaints within the Japanese government that the decision is disadvantageous to the U.S. and Japan.

Japanese media criticized in editorials that it was very unusual for the U.S. president to block the acquisition of U.S. companies by ally Japan, and that it would leave a stir in the U.S.-Japan relationship.

The Yomiuri Shimbun said the U.S. president ordered the suspension of the acquisition based on the review by the Foreign Investment Review Committee under the U.S. Treasury Department, seven of which were China-related companies, and that there was no precedent for allied companies.

He also pointed out in an editorial that Japan has been the No. 1 country in total investment in the U.S. for five consecutive years until 2023, and that a decision that goes against the grain will adversely affect investment in the U.S.

Japan's Minister of Economy, Trade and Industry, Yoji Muto, announced his stance after President Biden's decision became public that it was difficult to understand and regrettable.

In a related development, the Asahi Shimbun reported that complaints are swirling in the Japanese government, which has backed the takeover.