Why is Nippon Steel a National Security Threat?

Chris questions the national security concerns raised over Nippon Steel’s bid to purchase US Steel, arguing the reasoning lacks clarity. He highlights that Nippon Steel, a Japanese-based private company, offers a higher bid and promises to revitalize U.S. plants, unlike Cleveland Cliffs, the domestic competitor. Markowski critiques the lack of transparency in the decision-making process and challenges the narrative about threats to supply chains and infrastructure. He calls for deeper scrutiny and critical thinking on policies affecting competition and economic growth. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
I got a question, Got a question? Feel free, feel
free to send me an email, tax phone call. Why
is the Nipon steal deal? Why is that a threat
to national security? You want to explain that to me?

(00:36):
Nipon Steele say, Japanese based companies on owned by the
Japanese government. Japanese based company wants to come in and
buy us steel. There is a competitor to buy them,
buy us steel, and it's Cleveland Cliffs, and Nipon Steel's
bid is much higher, not to mention in fact, they

(00:57):
are going to spend more money in revitaling and building
up the plants. Now. I'm on my way early more,
on my way to the gym this morning, and I
got on my satellite radio listening to Fox, and Laura
Ingram from the night before was on, and she has
got the CEO of Cleveland Cliffs there and again Laura's

(01:20):
reading off the teleprompter again, plain this day obviously didn't
know what in God's creation she was talking about or
did any homework. It was provided for her there and
a teleprompter. And the narrative was, is that ours bad
national security Trump? And Trump doesn't like it either. That's
a great idea, no thought whatsoever. It's been blocked based

(01:45):
upon national security concerns. I keep saying that again as
a national security threat? Why again? People say things, They
just say stuff. Okay, what is it about the American
people that they can't ask why this is not? This

(02:08):
is not a Russian oligarch coming in and buying US steel.
This is not the Iranian government, you know, it's not Mexico.
It's one of our staunchest allies and most certainly a
partner that we need in the Pacific, Japan. And it's

(02:30):
not even the Japanese. It's a Japanese company coming in.
How is this a national security threat? They're not buying
US steel and shut it and shutting it down and
moving production overseas. So again I'm gonna say, you explain
to me. Explain to me how it's a national security

(02:53):
the Joe Biden said that a strong, domestically owned and
operated steel industry he represents an essential national security priority,
and added he will never hesitate to act to protect
the security of this nation and its infrastructure, as well
as the resilience of its supply chains. Is the supply
chain going to get worse? Well, what does this have

(03:15):
to do with the supply chain? It's here in the
United States. They're going they're going to actually reopen plants
that US steel, We're going to shut down domestically owned,
domestically owned. Well, we have Cleveland Cliffs, right, they can't compete. Again,

(03:41):
I've yet to get an answer on this from anyone.

Speaker 1 (03:47):
Well, you know what.

Speaker 2 (03:50):
The plant's not going anywhere. Okay, it's going to remain
here in the United States. See, the issue with Cleveland
Cliffs is that again they don't want to compete. They
don't want to compete. And is this is going to
be better for domestic production? Gonna be better as far
as steel prices are concerned. When they're basically the only

(04:13):
game in town in the United States, that's okay. You
guys don't like You guys didn't like the merger of
Bloody Jet Blue and Spirit Airlines, But you're okay with
the two dominant steel producers in the United States to
merge again. Always ask why, But when people just throw

(04:40):
again these umbrella type statements at you, national security concern? Why,
how and why is this a national security concern? Watch
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