Good evening. Early in the new year, U.S. President Joe Biden finally blocked Nippon Steel’s plan to acquire U.S. Steel, a move that was not entirely unexpected since he openly opposed the deal in the lead-up to last year’s presidential election. Still, the Japanese side was disappointed by the timing of the decision, coming so close as it did to the end of Biden’s presidency.
We have written extensively about the president’s decision, the political dynamics at play and possible scenarios for the future. Now that Nippon Steel has taken the unprecedented step of suing the government of Japan’s most important ally, the saga appears to be far from over, and there will be a lot more to write about.
In response to the unusual situation in which a Japanese company is suing the U.S. president, Japanese Prime Minister Shigeru Ishiba had uncharacteristically strong words for Washington, saying, “I urge the U.S. government to address these concerns [being raised in Japanese business circles] and clearly explain the security issues involved.”
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As Ishiba wants to know: What security concerns could the U.S. have about the deal? Six of the world’s top 10 steelmakers are Chinese, including China Baowu Steel Group, which tops the list. Given that China now controls a significant portion of global steel production — a resource considered critical to national security — many experts question why there is opposition to partnering with Washington’s closest ally.
Interestingly, there are signs that bilateral relations between Tokyo and Beijing are improving, even as Chinese public sentiment toward Japan is said to be worsening. Since late last year, the two countries have agreed to ease certain visa requirements, and Chinese Foreign Minister Wang Yi will visit Japan next month to pave the way for a state visit by President Xi Jinping.
My suggested reads
1. We asked our readers to peer into their crystal balls and share their predictions for Asia in 2025. Will Chinese stocks rise further? Will BYD finally overtake Tesla in EV sales? Will incoming U.S. President Donald Trump resume talks with North Korea’s Kim Jong Un? Read what they foresee on these and other key issues.
2. Indonesian President Prabowo Subianto has prioritized achieving self-sufficiency in food production within five years. A quiet rice paddy two hours from Jakarta hosts an unassuming facility that may hold the key to meeting the lofty goal — a seed bank.
3. Indian tourists are flocking to Southeast Asia as their wanderlust grows, powered by an economy that is expanding faster than much of the rest of the world. With new direct flights opening up, travelers are increasingly exploring countries like Vietnam and Cambodia, which were previously overshadowed by Thailand and Singapore.
4. Soybeans were among the commodities clearly affected by the U.S.-China trade war during Donald Trump’s first term in the White House. Now the crop’s prices are being pressured by expectations that similar tensions could manifest again under Trump 2.0, given the market-swaying fact that the U.S. is a major global producer and China is the biggest importer.
5. Bangkok’s Song Wat Road area, a former commercial hub and home to many heritage buildings, has been a lot of things in its long history, but trendy isn’t one of them. That’s changing, however, as local entrepreneurs breathe new life into the district, turning it into a buzzy hot spot with hip cafes, restaurants and art galleries, all while preserving its historical charm and celebrating its cultural diversity.
Through the lens
This week’s top photo pick: Police help earthquake victims in the Tibetan city of Shigatse after a powerful temblor struck on Jan. 7. The strong earthquake struck the foothills of the Himalayas near one of Tibet’s holiest cities, killing at least 126 people and flattening hundreds of houses, Chinese authorities said. (Photo by Xinhua/AP)
Check out more of our photo coverage here.
Wishing you a wonderful weekend!
Shin Nakayama
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