The Alleged Interference in CFIUS’s Decision: A Lawsuit Between US Steel and Nippon Steel vs. President Biden
In March 2021, US Steel Corporation and Nippon Steel Corporation filed a lawsuit against President Joe Biden. The companies claimed that the President had interfered in the Committee on Foreign Investment in the United States’ (CFIUS) review process of a proposed joint venture between the two corporations and South Korean steelmaker, Posco. This alleged interference, according to the lawsuit, violated the companies’ right to a fair and impartial review.
Background of the Joint Venture
The proposed joint venture, named the USS-POSCO Industries, aimed to build a $1.8 billion steel mill in West Virginia. The project was expected to create thousands of jobs and strengthen the steel industry in the United States. However, the CFIUS review began in December 2020, and the review process was ongoing when President Biden took office in January 2021.
The Alleged Interference
According to the lawsuit, President Biden, through his appointees, pressured CFIUS to deny the application for the joint venture. The companies claim that the President’s actions were based on his desire to protect the jobs of United States steelworkers and to counteract the perceived threat of foreign competition. However, the companies argue that the President’s involvement in the review process was inappropriate and violated their due process rights.
Impact on the Companies
If the lawsuit is successful, US Steel and Nippon Steel could be entitled to damages and potentially have the CFIUS decision overturned. The delay caused by the lawsuit could also harm the companies, as they have already lost time and resources in the ongoing review process. Furthermore, the lawsuit could undermine the confidence of foreign investors in the United States’ investment climate.
Impact on the World
The outcome of this lawsuit could have significant implications for international trade and investment. If the President’s actions are found to be unlawful, it could set a precedent for future cases involving similar circumstances. It could also impact the United States’ relationships with its trading partners, particularly those in Asia. Conversely, if the President’s actions are found to be lawful, it could signal that political considerations can override the impartiality of regulatory bodies in the United States.
Conclusion
The lawsuit between US Steel and Nippon Steel and President Biden highlights the complexities of balancing national security concerns with economic interests and the role of political considerations in regulatory decision-making. The outcome of this case could have far-reaching implications for international trade and investment, as well as for the relationship between the United States and its trading partners. As the legal proceedings continue, it is essential to closely monitor developments in this case and assess its potential impact on the global economy.
- US Steel and Nippon Steel claim President Biden interfered in CFIUS’s review process of a proposed joint venture.
- The alleged interference violated the companies’ right to a fair and impartial review.
- The outcome of the lawsuit could set a precedent for future cases involving similar circumstances.
- The impact on international trade and investment, as well as on the relationship between the United States and its trading partners, could be significant.
