Investment

The Nippon Steel Decision Is Not About Japan

President Joe Biden’s decision to block Nippon Steel’s proposed acquisition of U.S. Steel was criticized as a bid for union support in an election year. Based on information that has come out in subsequent litigation, we now know that the committee charged with reviewing the transaction did identify national security concerns that were rooted in factors unique to the global steel market and Nippon Steel.  

Why America’s Steel Industry Needs Nippon Steel: An Investor’s Reflections

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.