President Donald Trump’s proposal to allow Nippon Steel to invest in U.S. Steel could produce a genuine victory out of the embarrassing saga of the past year. Andrew McDermott, a long-term investor in Japan, says the key question in any new deal will be whether the terms allow Nippon Steel to deploy its management strengths and show Americans the path back to their manufacturing glory days. For this, we need to once again value real engineering over financial engineering.
The Holding Foreign Companies Accountable Act: Investor Protection or Geopolitics?
Tamar Groswald Ozery argues that risks to investors may actually be worsened by US enforcement of the Holding Foreign Companies Accountable Act, which was enacted in the name of investor protection. Ozery describes the HFCA as part of a geopolitical agenda of decoupling, but says it is backfiring by enhancing the Chinese government’s control over Chinese issuers.