Delaying Nippon-U.S. Steel Review May Harm U.S. Investment Climate
WASHINGTON, D.C. – In response to backlash surrounding Nippon Steel Corporation’s plans to acquire U.S. Steel, Nancy McLernon, Global Business Alliance (GBA) president and CEO, sent a letter to Janet Yellen, U.S. Treasury Secretary and Chair of the Committee on Foreign Investment in the United States (CFIUS), urging her not to allow the review process to be unduly politicized.
Ms. McLernon’s letter urges Secretary Yellen to “remain steadfast in applying the time-tested principles of CFIUS – focusing only on actual facts to identify and mitigate potential national security risks.”
The letter reads, in part:
“Congress codified the authorities that guide CFIUS in the 1980s and clearly affirmed the importance of remaining open to foreign investment while focusing narrowly — and strictly — on national security-related threats, not economic isolationism. That was the standard reaffirmed when Congress made reforms in the mid-2000s and when Congress passed the Foreign Investment Risk Review Modernization Act (FIRRMA) in 2018.
“Unfortunately, some elected officials are now advocating to ignore that standard and jeopardize the legitimacy of the Committee.
“Like most advanced economies, the vast majority of global investment enters the United States through mergers and acquisitions. In 2022, 95 percent of new FDI came in that form. Representing a key sector of the U.S. business community, GBA supports a strong and well-resourced CFIUS process to protect our national security – including being a vocal proponent of FIRRMA when it was passed by Congress.
“However, CFIUS should never become a tool for garnering political favor or allowing domestic competitors to achieve something they cannot do in a competitive market. Efforts to delay or derail CFIUS reviews could have far-ranging consequences, damaging America’s investment climate.”
Read the full letter.