On December 24, Financial Association reported (Editor: Ma Lan) that the planned acquisition of United States Steel by Japan's Nippon Steel has become a "hot potato" in the USA political scene.

According to two informed sources, the Committee on Foreign Investment in the USA (CFIUS), composed of senior officials from the President's cabinet, has sent a letter to Biden stating that there is no consensus on whether the acquisition poses a threat to USA National Security, and the committee has reached a deadlock on this matter, making it unable to issue an opinion.

Traditionally, the committee should inform the President of the potential risks of the Trade in the final report, but after months of review, the agency has clearly become entangled in a vortex of "conscience" and "reason."

It is reported that the committee is frustrated with the attitudes of Biden, Vice President Harris, and incoming President Trump, all of whom are currently prominent figures in USA politics and have clearly opposed the acquisition of United States Steel by Nippon Steel, stating that it should be acquired by a domestic company to protect jobs. This political statement has influenced the objective stance of the committee in reviewing the advantages and disadvantages of the Trade.

Let Biden decide.

Although Nippon Steel and United States Steel continually emphasize that their Trade will not pose any threat to USA National Security, and Nippon Steel has assured multiple times that it will retain enough jobs in the USA, the political sensitivity has placed this acquisition deal on the hot seat.

Previously, the United Steelworkers union stated its refusal for the company to be acquired by Nippon Steel, preferring that a USA company take over to preserve union traditions and worker benefits. This Trade has become a key issue for both parties in the election phase, but surprisingly, there is still no sign of resolution on this issue after the election.

Meanwhile, there are almost no domestic companies in the USA that can offer the same price to acquire United States Steel, making the politicians' wishful thinking of 'American companies acquiring American companies' quite awkward. This dilemma has also sparked criticism from Wall Street, which argues that using political power to obstruct normal business transactions contradicts the principles of a free market.

This has collectively created the 'ostrich mentality' of the USA Foreign Investment Committee, because theoretically, if the transaction is not approved, United States Steel will be forced to close important factories, significantly impacting the livelihoods of workers. In such a risky decision, the committee has no choice but to let Biden make the decision himself.

It is still unclear whether Biden will completely veto the agreement or give these two steel companies and the United Steelworkers Union a chance to reach an acceptable agreement through negotiation.

However, even if Biden opts for additional negotiations, Trump may still block the agreement once he takes office. Earlier this month, Trump promoted on Social Media that through a series of tax incentives and tariffs, he will make the United States steel industry strong again.