“They must be able to clearly explain why this deal is a national security concern, otherwise further discussions on the issue will not be successful,” Isiba told reporters.
The Japanese prime minister said that such a decision by Biden raises concerns about further Japanese investments in the world’s largest economy.
“It would be inappropriate for the Japanese government to comment on the management of an individual company under investigation under US domestic law, so we will refrain from commenting, but strongly urge the US government to take steps to address these concerns,” Isiba said.
Commenting on his decision to block Nippon Steel’s plan to buy US Steel on Friday, Biden said “this deal would subject one of America’s largest steel producers to foreign control and pose risks to our national security and our critical supply networks.”
The decision to approve the proposed deal was left up to Biden after the Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus in late December on whether the takeover of US Steel posed a threat to US national security. So approval of the controversial deal was left to Biden, who was required by law to make a decision within 15 days.
Biden has been criticizing the deal for months, joining other influential people in the US, including newly elected US President Donald Trump.
This deal was also widely discussed in the 2024 US presidential election campaign, when Pennsylvania, where US Steel’s headquarters and several factories are located, became a crucial swing state and the deal was loudly opposed by the leaders of the United Steelworkers union.
Nippon Steel has called the deal a lifeline for the struggling Pennsylvania steel industry.