Trump: "Nippon Steel’s deal with US Steel is an investment, not an acquisition... US will keep control"

US President Donald Trump emphasized on the 30th (local time) that Nippon Steel’s negotiations with United States Steel Corporation are 'an investment,' not an 'acquisition.'

According to Yonhap News and others, President Trump held a large rally at a U.S. Steel plant on the outskirts of Pittsburgh, Pennsylvania, returned to Washington, D.C., and told reporters, when asked if Nippon Steel was acquiring United States Steel Corporation, "This is an investment."

He said, "It is controlled by the US, and the board of directors is also under US control," stressing, "More importantly, what matters is that they (Japan) are spending money on the facilities."

Trump explained that Nippon Steel plans to invest $17 billion (about ₩23 trillion 5 billion) in a new steel mill, will keep the blast furnaces fully operational for the next ten years, and will not lay off any employees.

However, when asked if Nippon Steel would actually own United States Steel Corporation, President Trump did not give a clear answer. He said, “I rejected this proposal four times, but when they finally did it right, I became very happy about it.”

Even after being taken over by Nippon Steel, it is being discussed that the US government would be able to exert influence on US Steel’s key decision making. Jamieson Greer of the Office of the United States Trade Representative (USTR) said, “The key principle is that the US must retain control over core industries, whether it’s manufacturing or advanced technology,” and "When a foreign company acquires or makes a large investment in such a firm, the US should keep control."

President Trump commented that negotiations regarding Nippon Steel’s deal with US Steel have no relation to the US-Japan trade talks, “but it will not do any harm either.”

Reporter Han Kyung-woo, Hankyung.com case@hankyung.com