Business leaders from the United States and Japan recently held a two-day meeting in Washington, attended by over 200 executives from major companies in both countries. At the conclusion of the meeting, they issued a joint statement calling on both governments to ensure rule-based investment screening procedures and maintain a free and open international economic order.

The meeting took place against the backdrop of Nippon Steel Corporation’s plans to acquire United States Steel Corp. In their joint statement, corporate executives urged both governments to ensure that investment screening measures are strictly focused on national security issues and operate in a rule-based manner to ensure transparency and promote investment between trusted partners.

Atsuko Sawada, Executive Chairperson of Nippon Telegraph and Telephone Corporation (NTT), stated at a news conference that the business communities of both countries wanted to convey a message hoping for the screening process to be completed correctly, without political coloration. Although the statement did not specifically mention Nippon Steel or U.S. Steel, attendees expressed concern about any attempts to politicize the ongoing acquisition plan review process.

This concern stems from the reaction of U.S. political circles to Nippon Steel’s plan to acquire U.S. Steel. Both U.S. President Joe Biden and Vice President Kamala Harris have expressed opposition to the plan, arguing that U.S. Steel should remain in domestic hands. Former President Donald Trump holds a similar stance. This has made the issue a sensitive topic between the two countries. Currently, the Committee on Foreign Investment in the United States, chaired by Treasury Secretary Janet Yellen, is reviewing whether the merger poses a national security threat.

Douglas Peterson, President and CEO of S&P Global Inc., emphasized that as the business community, they encourage Japan to continue investing in the United States. He pointed out that Japan is one of America’s closest allies, and Japanese companies are the largest investors in the U.S., creating over a million jobs. Peterson also stated that the U.S.-Japan business community continues to move forward while withstanding numerous challenges and changes from governments.

In addition to the investment screening issue, the participating leaders made recommendations on other aspects. They called on both governments to increase support for research and development in basic sciences, semiconductors, and emerging technologies, including quantum computing and artificial intelligence. At the same time, they urged governments to create a “predictable” regulatory environment to help companies effectively recruit, train, and retain high-quality employees, and to increase measures enabling the U.S. and Japanese private sectors to cooperate more in third-country markets.

Key points:

• U.S.-Japan business leaders call for rule-based investment screening procedures to maintain a free and open international economic order.
• Nippon Steel’s plan to acquire U.S. Steel has raised concerns about the politicization of investment screening.
• U.S. political circles oppose Nippon Steel’s plan to acquire U.S. Steel, making it a sensitive issue between the two countries.
• Business leaders emphasize the importance of Japanese investment in the U.S. and encourage continued investment.
• Participants recommend strengthening support for technological R&D, creating a predictable regulatory environment, and promoting cooperation in third-country markets.

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