Would Japanese Ownership of US Steel Really Be a National Security Threat? 

October 15, 2024 

BU Today recently published an article featuring Michael Salinger, Jacqueline and Arthur Bahr Professor in Markets, Public Policy, and Law, discussing the proposed takeover of U.S. Steel by Japan’s Nippon Steel. The potential deal has raised concerns about national security, a point highlighted by President Biden. 

While President Biden has extended a security review of the merger, experts argue it should be approved, claiming it poses no national security risk due to Japan’s status as a U.S. ally and key investor in the American economy. They believe this merger could improve U.S. Steel’s operations and strengthen job security. 

“Given that US Steel is far from a dominant producer of steel in the United States, that the United States already imports a substantial amount of steel from a variety of friendly countries, and that Japan is a friendly country, the national security concern is certainly not obvious,” Salinger adds.  

The national security objections to the merger are unconvincing, especially when weighed against other industries that are more vital for national defense.