[By Guancha Observer Network, Lin Chenli] On May 23 local time, US President Trump expressed on social media regarding the Nippon Steel acquisition case that US Steel Corporation and Japanese Nippon Steel will "reach a cooperation." After this news was released, the media in the US and Japan showed different reactions. While US media were still puzzled about whether there was an acquisition between Nippon Steel and US Steel Corporation, Japanese media celebrated, saying that Trump had "cleared the way" for the deal.

Trump posted on the "Truth Social" platform on the same day: "I am proud to announce that after careful consideration and negotiation, US Steel Corporation will continue to remain in the United States and set its headquarters in Pittsburgh. For many years, the name 'US Steel' has been a great symbol, and now it will be so again."

Trump introduced that US Steel Corporation and Nippon Steel have reached a "planned" cooperation, which will create at least 70,000 jobs and inject $14 billion into the US economy. Most of this investment will be in place within the next 14 months, making it the largest investment in Pennsylvania's history.

"My tariff policies will ensure that steel is forever made in America. From Pennsylvania to Arkansas, from Minnesota to Indiana, American manufacturing is back. On May 30, I will attend a celebration rally at US Steel Corporation in Pittsburgh," Trump wrote.

In response to Trump's remarks, US media outlets such as The Wall Street Journal and The Washington Post pointed out that Trump did not disclose specific details of the Nippon Steel acquisition case, and the future of this transaction, which has been under preparation for nearly two years, remains unclear.

On May 23 local time, Trump said that US Steel Corporation and Nippon Steel would "reach a cooperation." Nikkei Asia

According to The Wall Street Journal, people involved in the negotiations revealed that Trump's proposed cooperation plan caused some confusion among the two companies on the afternoon of the 23rd. Nippon Steel and US Steel Corporation are both seeking more guidance from the Trump administration to understand how much equity Nippon Steel will ultimately obtain.

The Washington Post stated that Trump's statement avoided the core issue regarding the fate of US Steel Corporation: whether it would continue to be owned by Americans as Biden and the United Steelworkers Union insisted, or become part of its Japanese competitor?

The report pointed out that with the current information available, neither the two companies nor the White House have disclosed whether Nippon Steel is acquiring US Steel Corporation or simply investing in it. The lack of details in this transaction, which has been in preparation for nearly two years, has frustrated major stakeholders, including investors and affected unions.

"Without more information, we cannot speculate on the impact of today's announcement," said David McCauley, president of the United Steelworkers Union. "We remain concerned that Nippon Steel, as a long-standing foreign company that has violated US trade laws, will further erode US steel capacity and jeopardize thousands of quality union-provided jobs."

While US media were still puzzled, Japanese media such as Nikkei Asia expressed considerable optimism.

The media reported that Trump's decision "cleared the way" for the progress of the deal. After the second review by the Committee on Foreign Investment in the United States (CFIUS), Trump seemed to conclude that the transaction posed no threat to US national security, and Nippon Steel is seeking to acquire full ownership of US Steel Corporation.

Nippon Steel stated in a press release: "Nippon Steel commends Trump's bold move to approve our cooperation with US Steel Corporation. This cooperation with US Steel Corporation will be a game-changer for US Steel Corporation, its stakeholders, including the US steel industry, and the broader base of US manufacturing."

US Steel Corporation also issued a statement: "US Steel Corporation will continue to maintain its American identity. Through our cooperation with Nippon Steel, we will grow and thrive over the next four years, bringing massive investments, new technologies, and thousands of jobs."

The report mentioned that Japan's chief trade negotiator, Takayoshi Akasawa, said on the afternoon of the 23rd in Washington that he was waiting for the White House to announce the details of the deal.

Talking about the meeting between Japanese Prime Minister Shibuya and Trump in February, Akasawa said: "We feel that Trump's view on Nippon Steel's investment in US Steel Corporation changed slightly when he met Shibuya."

On February 9, after meeting with Trump, Shibuya told reporters that Nippon Steel would invest in US Steel Corporation, and US Steel Corporation would remain an American company. This statement seemed to confirm Trump's earlier claim that "Nippon Steel has abandoned its plan to acquire US Steel Corporation and is instead seeking a large-scale investment in US Steel."

"As the saying goes, 'Steel builds the nation,' but there is a deep sentiment toward steel in the US. Considering that US Steel Corporation was once one of the largest companies in the world, if a Japanese company acquires it, it will 'touch nerves,'" Shibuya said at the time. Since this is a private sector matter, he could not comment on the actual investment amount, but he said that Nippon Steel could improve the quality of US Steel Corporation's products through investment.

He added: "For Trump, US Steel Corporation remains an American company, and it produces high-quality products, which seems important."

This article is an exclusive contribution from the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7507920740776280595/

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