“The U.S. national security panel reviewing Nippon Steel's $14.9 billion bid for U.S. Steel let the companies refile their application for approval of the deal, a person familiar with the matter said, delaying a decision on the politically sensitive merger until after the Nov. 5 presidential election…

“The move offers a ray of hope for the companies, whose proposed tie-up appeared set to be blocked when the Committee on Foreign Investment in the United States (CFIUS) alleged on Aug. 31 the transaction posed a risk to national security by threatening the steel supply chain for critical U.S. industries…

“The deal has become a political hot potato. This month, Vice President Kamala Harris, the Democratic presidential nominee, said at a rally in Pennsylvania, the swing state where U.S. Steel is headquartered, that she wanted U.S. Steel to remain ‘American owned and operated,’ echoing a view held by President Joe Biden… Harris' Republican rival Donald Trump has pledged to block the deal if elected. Both candidates have sought to woo union votes.” Reuters

All sides are critical of efforts to block the deal:

“[Nippon Steel] would invest an additional $1.3 billion in U.S. Steel to turn around two of its largest facilities—the Gary Works in Indiana and the Mon Valley Works in Pennsylvania. Particularly for Pennsylvania, where steel has been and still is vital to so many communities, this could be a turning point. Nippon Steel has already shared its commitment to keeping American plants open and U.S. Steel’s name on the door, which will save thousands of jobs and continue the legacy of one of America’s oldest companies…

“If the deal falls through, U.S. Steel has warned that plant closures could be on the horizon. This news should be a wake-up call for American taxpayers, steelworkers, consumers and policymakers. It would also send a chilling signal to international investors that America is no longer open for business. Our national debt is soaring. Why should the U.S. government continue to pour billions of taxpayer dollars into subsidizing an industry that a reputable, financially sound investor is willing to sustain and revitalize?”
Charlie Dent, Wall Street Journal

“The hometown Pittsburgh Post-Gazette admitted that without foreign ownership, ‘there is no long-term future for steelmaking in Pittsburgh.’… All across the U.S., corporations from Japan and other U.S. allies have created hundreds of thousands of U.S. jobs and become local economic lodestars by buying or investing in U.S. companies, building manufacturing plants, and creating corporate office centers. This is especially true in the automotive industry, which of course provides demand for locally manufactured steel…  

“All told, the U.S. enjoys $300 billion in new foreign investment each year. Except when dealing with subsidiaries of hostile nations such as China, there’s no reason the concept of ‘owned in America’ should outweigh that of ‘made in America.’ It is a good thing, not a bad one, to have foreign money flowing to our shores to hire American workers, buy from local vendors, build U.S. manufacturing capacity, and donate to American charities.”
Editorial Board, Washington Examiner

“The Biden administration has prided itself on supporting US-based manufacturing and unions, so it’s perhaps no surprise that it would throw in with the United Steelworkers. Then again, plenty of other concerns that the administration has would presumably prioritize a push in favor of the Nippon purchase. There’s the needs of Japanese allies, for one thing, and the desire to counter China’s ‘oversupply’ of cheap steel…

“Then there’s the environment… The form of steel production that the United Steelworkers prizes and seeks passionately to preserve is likely not compatible with deep decarbonization. And the Democratic coalition cares deeply about decarbonizing the economy. In the current battle, the administration and party are siding with the union, but it’s not clear that the alliance can last indefinitely.”
Dylan Matthews, Vox

“[Blocking the bid makes] little sense, even in the context of Mr. Biden’s project to promote domestic manufacturing. The president has spent billions of dollars in this effort. Under both Mr. Biden and his predecessor, Donald Trump, the United States has ring-fenced the steel market with stiff tariffs to stop cheap imports, attract investment and stimulate domestic production. The bid by Nippon Steel, which promised to inject $2.7 billion of new capital and supply better technology, would seem to be a win for those policies…

“What’s truly inexplicable, though, is the likely rationale for the ban: national security… Tokyo is one of Washington’s closest friends and a critical ally in the United States’ confrontation with China. Japan is boosting its defense capabilities, and it has been helping the United States slow China’s development of advanced technologies. Members of Congress have slammed Nippon Steel for a joint venture with China’s state-owned Baoshan Iron & Steel, but the Japanese, in deference to those concerns, exited the Baoshan partnership last month.”
Editorial Board, Washington Post

“Neither Harris nor Biden has explained what is ‘vital’ about preventing the acquisition of one of America’s largest steel companies by the United States’ top Pacific ally. The United States trusts Japan to host tens of thousands of U.S. troops and to buy some of the most advanced U.S. military technology. Nippon Steel already owns stakes in several smaller U.S. steel companies. There is no U.S. military dependence on U.S. Steel. What exactly is the potential future scenario in which Japanese ownership of U.S. Steel could harm America?…

“The Biden administration’s plan to block the steel deal comes as it is pressing Japan to stop selling China advanced semiconductor technology. Japan is cooperating, against its own economic interests, even risking retaliation from Beijing. But now the administration is undermining its own argument that Japan and the United States are in this economic competition with China together.”
Josh Rogin, Washington Post

“So the play here is to reject a very generous offer, against the near-unanimous wishes of the people who own the company, from a buyer who is promising to do the things you want to happen, because the buyer is from… Japan?…

“America’s best friend in Asia? The country whose prime minister addressed Congress earlier this year and said ‘the people of Japan are with you, side by side, to assure the survival of liberty’? The current top source of foreign-direct investment in the U.S.? That the U.S. is treaty-bound to defend if attacked? Where 55,000 U.S. troops are stationed?… As business strategy, rejecting the deal makes no sense. As national-security strategy, it also makes no sense.”
Dominic Pino, National Review

“The political opposition to the U.S. Steel/Nippon deal is a perfect example of why concentrating more economic power in Washington, D.C., is a terrible idea. Politicians seeking to create more opportunities for American workers should be celebrating this major foreign investment in domestic manufacturing. Instead, the levers of power are being manipulated by lobbyists and special interests to do the opposite—in pursuit of policies that will leave U.S. Steel and its employees worse off.”
Eric Boehm, Reason