2024-03-30 00:49 Economic Daily Editorial The United States is a model of liberalism and a model of market economy. It emphasizes that politics cannot intervene in the economy and private enterprises enjoy absolute freedom.european news agency
The United States was originally a model of liberalism and a model of the market economy, emphasizing that politics cannot interfere with the economy and that private enterprises enjoy absolute freedom. However, once upon a time, politics has become an increasingly important part of the considerations between individuals and enterprises. The United States will not change. Just like mainland China or Vietnam, state-owned enterprises control everything, but the United States is moving towards a situation where national policies dominate everything, and private enterprises must be subordinated to national interests.
As this year’s presidential election unfolds, economic and trade conflicts between the United States and other countries have also begun to escalate. Due to security concerns with mainland China, the two parties in Congress have unanimously pushed for legislation to force TikTok to cut off from Beijing. Chinese electric vehicles are being dumped in the United States via Mexico on a large scale. President Biden signed an executive order instructing the Department of Commerce to investigate whether they endanger national security. Trump said that if elected, he would impose a 100% tariff on electric vehicles made in China in Mexico.
What worries the allies even more is that even if the United States and Japan are as close as each other, conflicts may arise due to political considerations. This is the recent controversy over the acquisition of U.S. Steel by Nippon Steel. In order to win the votes of steel workers, Biden publicly opposed foreign mergers and acquisitions. This is a typical political intervention in the economy. Countries are worried that US protectionism will continue even after the election.
Headquartered in eastern Pennsylvania, U.S. Steel was founded in 1901. At its peak, its annual steel output reached 40 million tons, which has dropped to 14.49 million tons in 2022. In its heyday, it ranked first in the world, but now it has fallen to 27th place. The number of employees used to be as high as 350,000, but now it has dropped sharply to about 10,000.
In December last year, after bidding, U.S. Steel was scheduled to be sold to Nippon Steel Corporation (formerly Nippon Steel Corporation) for US$14.1 billion. Nippon Steel will also invest an additional US$1.4 billion and promises to There will be no layoffs or factory closures before now. The merger is currently being reviewed by the U.S. Foreign Investment Review Board. The committee’s main consideration is whether it is harmful to U.S. national security, but the final decision will be made by Biden.
Japan’s reason is that the capital and advanced technology provided by the company will enhance the competitiveness of U.S. Steel’s products. After the merger, the total output will surpass China’s Anshan Iron and Steel and become the second largest in the world. At present, no American company can do this. Therefore, through acquisitions, the US supply chain will be strengthened, which will help prevent China’s economic coercion and will be beneficial to US national security.
But the U.S. Steel Workers Union immediately objected. Since Pennsylvania, where U.S. Steel is located, is a “swing state” in previous elections. Last time, Trump only lost 80,000 votes to Biden. Therefore, both Biden and Trump attach great importance to competing for votes in Pennsylvania. Trump is in power. At the time, tariffs were imposed on imported steel, and Biden, who bills himself as the most pro-union president in history, has both candidates waving olive branches to steelworkers.
President Biden officially announced on the 14th that he opposed the merger, saying that it was crucial for U.S. Steel to remain owned and operated in the United States, indicating that he was on the side of American labor.
Trump has promised to block the deal if he wins the election. Finally, the United Steelworks of America officially announced on the 20th that it would support Biden in the presidential election. This statement clearly boosted Biden’s momentum in key industrial swing states.
At present, this matter cannot be considered final, because there is still diplomatic wrestling; Japanese Prime Minister Fumio Kishida will visit the White House in early April and hold a summit meeting with Biden. For Kishida, this is to expand security cooperation with the United States and also to expand security cooperation with the United States. However, the issue of acquiring U.S. Steel will definitely arise, casting a shadow over the otherwise smooth summit.
Now everyone is watching what Kishida will do, whether he will lobby hard on behalf of Japanese businesses or accept Biden’s objections. For the United States, even allies will regard “national security” as long as it involves the national interests of the United States. Because, there will be no mercy, there is no such thing as being patronizing.
In the eyes of Beijing, there is a feeling that “the United States is nothing more than this”; in response to the Douyin incident a few days ago, China’s Ministry of Commerce also stated that the United States should earnestly respect the principles of market economy and fair competition and provide open, fair, and open channels for companies from all over the world to invest and operate in the United States. A fair and non-discriminatory environment.
This sounds ironic, because mainland China has long been discriminating against foreign companies, and now it is accusing the United States. However, from the examples of TikTok, electric vehicles, and even American steel, everyone cannot help but admit that the United States has a similar situation. Globalization is dead. Liberalization is dead, it has been proven once again.
Biden China Trump
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2024-03-29 16:49:22
