Despite Nippon Steel, U.S.-Japan ties are stronger than ever, according to Reuters

(He corrected the name to Takashi, not Takashi, in paragraph 3 of the January 7 story)

By David Brunnstrom, Simon Louis (JO:), Trevor Hunnicutt and Tim Kelly

TOKYO/WASHINGTON (Reuters) – The foreign ministers of Japan and the United States said on Tuesday their countries’ ties were stronger than ever after Japan’s prime minister told U.S. President Joe Biden to block Nippon Steel’s $14.9 billion U.S. steel bid. confusing”

The political crisis in neighboring South Korea has complicated the trilateral relationship between Washington, Seoul and Tokyo, which has been established to counter China’s growing military power.

On Monday, Japanese Prime Minister Shigeru Ishiba expressed confusion at Biden’s decision, but after meeting in Tokyo on Tuesday, US Secretary of State Anthony Blinken and Japanese Foreign Minister Takeshi Iwaya hailed bilateral ties as stronger than ever.

In his comments to the media, where no questions were asked, Blinken did not mention Nippon Steel, but a statement from Japan’s foreign ministry said he and Iwaya “exchanged views on the economy, including the purchase of United States Steel (NYSE: ).” Corporation by Nippon Steel Corporation.

They affirmed the importance of Japan-US economic relations, including investments by Japanese companies in the US, he said.

Blinken said the two countries are “leading the way” in cooperation between like-minded countries, adding, “I have every confidence that it will continue for many, many years to come.”

After meeting with Ishiba at his residence, Blinken did not respond to questions from reporters about the potential impact of Biden’s decision on bilateral relations.

Analysts say that while it could have a chilling effect on Japanese investment into the US, any damage to their broader relationship would be limited given the two countries’ shared security concerns over China.

Business lobbies in both Japan and the US have pushed hard for the merger, backing their arguments with warnings about the impact on the vital relationship between the United States and Japan.

But he still faces opposition from both Biden and President-elect Donald Trump, who took office on Jan. 20 and is lagging behind in his re-election bid in Japan.

Ahead of their trip, Blinken expressed his desire to boost the momentum of US-Japan-South Korea trilateral cooperation.

In Seoul on Monday, Blinken reaffirmed his confidence in South Korea as it navigates its political turmoil.

Trump’s allies have assured Seoul and Tokyo of their support for efforts to improve ties and increase military, economic and diplomatic cooperation to counter China and North Korea, Reuters reported ahead of the US election.

Stress, some damage from the Nippon Steel decision

Nippon Steel and U.S. Steel filed a lawsuit on Monday saying Biden violated the U.S. Constitution by blocking their merger, calling it a bogus national security review. They asked the United States Federal Court to overturn the decision.

A Japanese diplomat told Reuters that Biden’s move could freeze foreign direct investment, but he hopes to maintain close ties between the U.S. and Japan, focusing heavily on re-establishing the strong ties with Trump during his previous administration and capitalizing on increasingly aggressive sentiment. China in Washington.

Nicholas Schecheny, a Japan expert at the Center for Strategic and International Studies in Washington, said Japan will not allow the decision to poison US-Japan relations. “It is very important for Japan’s national security,” he said.

After Trump won the election, he vowed to block the merger as president and support U.S. steel with tax breaks and tariffs, declaring his total opposition to the merger.

A former senior official in Trump’s first administration told Reuters he believed Trump would have taken the same approach as Biden.

Mark Bush, a fellow at Georgetown University’s McDonough School of Business, predicted a “major setback” for the United States to work with partners to create stronger supply chains in the face of Chinese dominance or competition in key areas.

“Japan and other partners will be skeptical about investing in or aligning with politically sensitive US supply chains. “China must be laughing at itself that it can never hope to achieve better results.”