U.S. President Joe Biden on Friday officially blocked Nippon Steel's proposed acquisition of U.S. Steel on national security grounds, which is a decision that could hurt the U.S. economy, said a U.S. scholar.
Biden said Friday that he had decided to block the 14.1 billion U.S. dollars sale of U.S. Steel to the Japanese steel giant, while urging the two steelmakers to "fully and permanently" abandon their plan.
In late 2023, Nippon Steel announced plans to acquire U.S. Steel, which is headquartered in Pennsylvania, one of the key swing states in the 2024 presidential election. Before Biden withdrew from the race, both he and his then-opponent, Donald Trump, had expressed opposition to the acquisition.
In an interview with the China Global Television Network (CGTN), Nicholas Economides, an economics professor from New York University, also talked about President-elect Donald Trump's possible plans once he takes office later this month.
"It is very possible, I might say it's even likely, there will be tariffs and tax incentives and other measures that President-elect Trump will initiate, but I think that overall at present, this is in my opinion, a bad move for the United States. If U.S. steel would accept the merger, then we would have a stronger company - the Japanese and the American company together," said the professor.
As President-elect Donald Trump is only weeks away from taking office, many believe Trump's mantra of tariffs and "America First" are just one big negotiating ploy.
Economides pointed out that tariff is one of the methods Trump uses to protect certain industries of the United States.
"To a large extent, it could be a negotiating tactic. In some cases, though, and specifically specific industries, it might not be a negotiating tactic. Tariffs might be a way to protect the particular industries that Trump thinks are very important for the United States," he said.
Biden's decision to block Nippon Steel's proposed acquisition of US steel plant might hurt economy: scholar
China is accelerating the commercialization of marine scientific and technological achievements and fostering new quality productive forces by boosting support for small and medium-sized enterprises (SMEs) in the marine sector, with a focus on investment and financing to drive industry growth.
The development of marine industries is marked by substantial investments, high risks, and slow returns. However, with strong national support, some companies, such as Zhejiang Startest Marine Science and Technology Co., Ltd. in east China, have achieved notable success.
The company is a national high-tech enterprise specializing in the independent research and development of underwater sonar detection equipment and underwater information data systems.
It now holds more than 210 intellectual property rights for its designs.
"We are now fully capable of replacing similar foreign imported products with our own ones, thereby overcoming the bottleneck in production caused by foreign product embargoes," said Su Xiaoyang, president of Zhejiang Startest Marine Science and Technology Co., Ltd.
While some marine SMEs, such as Shenzhen HiCloud Data Center Technology Co., Ltd., China's first underwater data center equipment and service provider, have mastered core technologies, a gap remains compared to international standards. As a result, continuous investment is necessary for them to overcome critical technological challenges.
"The Underwater Data Center Pilot Project is a new infrastructure initiative requiring a significant initial investment and scale effects. However, both users and investors in the market still lack a comprehensive understanding of the project's strategic significance, including the technical risks associated with emerging technologies," said Pu Ding, general manager of the Underwater Data Center Pilot Project in Hainan under Shenzhen HiCloud Data Center Technology Co., Ltd.
To address the challenges faced by marine SMEs in securing investment and financing, the Ministry of Natural Resources (MNR), along with the Shenzhen Stock Exchange, has organized a series of roadshows since 2016. Over 200 marine SMEs and innovation teams have participated, securing more than 3 billion yuan (around 409.8 million U.S. dollars) in financing.
In addition to these efforts, the MNR, in collaboration with the Shanghai Stock Exchange, launched China Ocean Economy Stock Price Index in 2024, covering 20 marine and related industries.
"This is the first domestic comprehensive index in the marine sector, covering all the markets of Shanghai, Shenzhen, Beijing, and Hong Kong. It provides timely insights into the operational performance of listed companies in the marine industry and plays an important role in promoting the efficient allocation of financial capital to the marine real economy," said Feng Lei, deputy director of the Ocean Strategic Planning and Economic Department under the Ministry of Natural Resources.
Small marine firms accelerate commercialization of sci-tech achievements under greater policy support
