US President Joe Biden Blocks Japan's Acquisition of U.S. Steel Corporation

In a move seen as a decisive stance against foreign ownership of critical industries, US President Joe Biden on Friday officially blocked Japan's Nippon Steel from taking over the nation's largest steel producer, U.S. Steel.

The decision comes after months of review by the Committee on Foreign Investment in the United States, with the president's statement emphasizing his commitment to defending US national security and maintaining domestic control over key sectors.

The proposed $14.9 billion acquisition would have placed one of the US's critical supply chains under foreign ownership, raising concerns about potential risks to the nation's economic stability.

Following the announcement, U.S. Steel's stock plummeted by nearly 8% in premarket trading on Friday, while the President-elect Donald Trump had also opposed this deal earlier.

The move marks a notable shift towards protectionism within the US, with both Democrats and Republicans acknowledging the need to protect domestic industries as tensions worldwide escalate.

Tokyo will now face tougher diplomatic pressures from US officials determined to keep China's ambitions in check in the Indo-Pacific region.

U.S. Steel CEO David Burritt had previously warned that potential closure of plants if this deal falls apart, further emphasizing the company's dependence on maintaining a unified ownership structure within the country.

This latest development reflects President Biden's continued emphasis on securing domestic industry interests and underscores his determination to safeguard US national security in the face of growing rivalries abroad.