2024-03-30 00:49 Economic Daily Editorial The United States is a model of liberalism and a model of a market economy and emphasizes that politics cannot interfere in the economy and that private enterprises enjoy complete 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 enterprise enjoys complete freedom. But, once in a while, 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 initiatives 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, both parties in Congress have unanimously pushed for legislation to enforce TikTok to break away from Beijing. Chinese electric vehicles are being dumped in the United States via Mexico on a large scale President Biden signed an executive order directing the Department of Commerce to investigate whether they endanger national security. Trump said that if elected, he would n 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 so close to each other, conflicts can arise due to political considerations. This is the recent controversy regarding the acquisition of US Steel by Nippon Steel. In order to win the votes of steel workers, Biden publicly opposed mergers and foreign 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, US Steel was founded in 1901. At its peak, its annual steel output reached 40 million tons, which has declined to 14.49 million tons in 2022. At its peak, it became the world’s first, but now it has fallen to 27th place. The number of workers used to be as high as 350,000, but has now dropped sharply to around 10,000.
In December last year, after an offer, US Steel was supposed 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 that will be any reduction or factory. close before this. The merger is currently being reviewed by the US Foreign Investment Review Board and the committee’s main consideration is whether it is harmful to US national security, but Biden will make the final decision.
Japan’s reason is that the advanced capital and technology provided by the company will improve the competitiveness of US Steel products. After the merger, the total output will surpass China’s Anshan Iron and Steel and become the second largest in the world . Currently, no American company can do this. Therefore, through acquisitions, the US supply chain will be strengthened, which will help to prevent China’s economic coercion and will be beneficial to the national security of the United States.
But the United States Steelworkers Union immediately objected. Because Pennsylvania, where US Steel is located, was a “swing state” in previous elections. Last time, Trump lost to Biden by only 80,000 votes. Therefore, Biden and Trump place great importance on competing for votes in Pennsylvania. Trump is in power. At the time, tariffs were placed on imported steel, and Biden, who bills himself as the most pro-union president in history, has both candidates waving olive branches to steel workers.
President Biden officially announced on the 14th that he opposes the merger, saying that it is essential for US Steel to remain owned and operated in the United States, stating that he is on the side of American labor.
Trump has vowed 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 was clearly a boost to Biden’s momentum in key industrial swing states.
At the moment, this issue 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 with Biden. States and also to expand security cooperation with the United States, However, the issue of acquiring US 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, as long as it concerns the national interests of the United States, they will also consider “national security” as the priority. 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 said that the United States should seriously respect market principles. 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 environment that does not discriminate.
This sounds ironic, because mainland China has been discriminating against foreign companies for a long time, and now it is accusing the United States. However, from the examples of TikTok, electric vehicles, and even American steel, everyone can not 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
recommended article
#politics #takes #lead #globalization #dead #Editorial #Column
