Tokyo: U.S. Commerce Secretary Gina Raimondo on Friday expressed concern about Nippon Steel Corp.’s bases in China, as the Japanese steelmaker aims to acquire United States Steel Corp.

Raimondo said in a CNBC interview that companies investing in China need to be closely scrutinized.

The U.S. government is examining Nippon Steel’s connections to China over national security concerns, according to a Bloomberg report Thursday.

The U.S. government is concerned that China’s overproduction of steel is distorting the global market. Meanwhile, it is seeking to reduce the United States’ reliance on China in supply chains from the perspective of economic security.

Nippon Steel’s plan to acquire the U.S. company is opposed by the United Steelworkers labor union. Donald Trump, the front-runner in the Republican presidential nomination race, has said he would block the planned acquisition if he returns to the White House.

U.S. President Joe Biden, who is seeking re-election, is also believed to oppose the acquisition.

JIJI Press