US Steel and Nippon Steel agreement will lead to the Chinese Communist Party elites’ discontent amid steel prices going down

On April 12, 2024, 98% of shareholders approved the sale of US Steel to Japanese steel giant Nippon Steel for more than $14 billion. The transaction between the Japanese and American steel companies is nearing completion after almost six months of discussions between US Steel unions and Nippon Steel representatives.

First, discussions about this agreement centered on job retention, supply chain preservation, and U.S. national security, given China’s leading position in the steel industry.

With domestic demand for steel declining due to the falling real estate market, China is turning to growing exports to compensate for losses in the domestic market. In the first quarter of 2024, China’s steel exports grew by 28%, indicating that the Chinese steel industry is active in the international market.