U.S. Steel Shareholders Approve Sale to Japan's Nippon Steel
U.S. Steel shareholders’ approval of a sale to Japan’s Nippon Steel prompts questions about national security, industrial policy, and why Congress aggressively targets Chinese-owned TikTok while largely accepting Japanese ownership of critical manufacturing assets. Commenters note that Japan is a close U.S. ally and that U.S. Steel now produces only about 12% of domestic steel, with firms like Nucor more central to supply, yet some still argue for keeping core capacity under domestic control. The thread also touches on antitrust concerns around rival bidder Cleveland-Cliffs, the long decline and regulatory capture of U.S. Steel, and broader worries about oligopolies, foreign investment, and the future of steelmaking technology.
TikTok vs U.S. Steel Sale
- Several commenters contrast Congress’s aggressive stance on TikTok with relative quiet over Nippon Steel buying U.S. Steel.
- Many argue the difference is simple: China is seen as an adversary, Japan as a close ally; if TikTok were UK-owned, there likely wouldn’t be hearings.
- Some see this as straightforward realpolitik; others accuse critics of “both-sides” cynicism that ignores meaningful differences between regimes.
Allies, Adversaries, and Geopolitics
- Long subthread debates why Saudi Arabia and Turkey are treated as “allies” while Russia/China are treated as enemies.
- One side: distinctions hinge on invasions/annexations (e.g., Ukraine, threats to Taiwan), authoritarianism, and expansionism.
- The other side: all major powers commit abuses and run self-serving propaganda; moral narratives often mask power politics.
- Some recall that China was a WWII “ally” and that alliances are historically contingent.
National Security & Foreign Ownership
- Concern: critical industrial capacity should remain domestically owned, even if the buyer is from an allied country.
- Counterpoints: factories are on U.S. soil and can be nationalized in war; steel output and military production are largely visible via public data and satellites anyway.
- Some argue TikTok is uniquely dangerous because it can shape the information environment in real time; a steel mill cannot.
U.S. Steel’s Actual Importance
- Multiple commenters stress U.S. Steel is no longer dominant: it produces about 12% of U.S. steel, with Nucor cited as the leading and more innovative domestic producer.
- Linked blog post and podcast describe U.S. Steel as historically powerful but increasingly outdated and uninnovative.
Antitrust, Oligopoly, and Rival Bids
- Skepticism that blocking the Japanese deal in favor of a domestic bidder (Cleveland-Cliffs) would help competition, since that bidder has already absorbed other U.S. mills.
- Broader worry about entrenched oligopolies, courts being slow or conservative on antitrust, and whether stronger breakup powers or targeted taxes on very large firms are needed.
Steel Industry Technology & Capital Intensity
- Industry insider notes Japan/Korea/Taiwan as current technology leaders; Europe is pushing green/hydrogen steel.
- Expectation that blast furnaces will begin to be displaced in the 2030s, with high capital risk around picking the “wrong” new process.
- Steel is grouped with chips, oil, and other heavy industries as highly capital-intensive, needing high utilization and tending toward thin margins and consolidation.