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U.S. Steel and Nippon Sue Biden Over Decision to Block Deal

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U.S. Steel and Nippon Sue Biden Over Decision to Block Deal

U.S. Steel and Japan’s Nippon Steel sued the United States government on Monday in a last-ditch attempt to revive their attempted merger after President Biden blocked it last week on the basis that the transaction posed a threat to national security.

The lawsuit, filed in a federal court in Washington, accused Mr. Biden and other senior administration officials of corrupting the review process for political gain and of harming steel workers and the American steel industry by blocking the deal under false national security pretenses.

Mr. Biden moved to block the merger after a government panel charged with reviewing foreign investments failed to reach a decision about whether the deal should proceed. In a statement on Friday, Mr. Biden said that he was acting to ensure that the U.S. maintains a strong domestically owned and operated steel industry. The president had previously vowed to ensure that U.S. Steel remained American-owned.

The companies are asking for the Committee on Foreign Investment in the United States to conduct a new review of the deal.

The companies also filed a separate lawsuit against Cleveland-Cliffs, an American steel company that previously tried to buy U.S. Steel but was rebuffed, along with Lourenco Goncalves, chief executive of Cleveland-Cliffs, and David McCall, international president of the powerful union United Steelworkers. The lawsuit alleged that Cleveland-Cliffs and the head of the union illegally colluded to undermine the proposed deal between U.S. Steel and Nippon Steel.

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The legal actions represented a long-shot maneuver by the companies to preserve a deal that was ensnared in election year politics. Presidents have broad authority to determine what constitutes a national security threat, and no transaction blocked under those powers has ever been overturned by the courts.

However, Mr. Biden’s move to terminate Nippon’s $14 billion bid for U.S. Steel raised questions about whether those powers were being abused, given that Japan is a close ally of the United States. In the rare cases where deals have been blocked, they usually involved companies with ties to U.S. adversaries such as China.

“Nippon Steel and U.S. Steel are disappointed to see such a clear and improper exploitation of the country’s national security apparatus in an effort to help win an election and repay political favors,” the companies said in a statement on Monday. “Nippon Steel and U.S. Steel are entitled to a fair process and have been left with no choice but to challenge the decision and the process leading to it in court.”

David Burritt, the chief executive of U.S. Steel, assailed Mr. Biden on Monday, suggesting that the president blocked the deal because he “owed the union boss a favor in exchange for an endorsement.”

“The government failed us,” Mr. Burritt said in an interview on the Fox Business Network on Monday. “They failed because they didn’t follow the process, and we are going to right that wrong.”

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The White House defended Mr. Biden’s decision on Monday, pointing to the threats to the U.S. steel industry that the committee highlighted.

“A committee of national security and trade experts determined this acquisition would create risk for American national security,” said Robyn Patterson, a White House spokeswoman. “President Biden will never hesitate to protect the security of this nation, its infrastructure, and the resilience of its supply chains.”

The lawsuit against the Biden administration was filed in the U.S. Court of Appeals for the District of Columbia Circuit. The suit also names Treasury Secretary Janet L. Yellen, who chairs the Committee on Foreign Investment in the United States, and Merrick Garland, the attorney general.

The companies argue that because Mr. Biden publicly said last March that he did not want the deal to happen, the national security review conducted by the panel, known as CFIUS, was tainted by politics and “designed to reach a predetermined result.” They also claimed that the panel had failed to engage with the companies when they proposed measures to mitigate any national security concerns.

After a yearlong review process, the interagency committee — ultimately divided on the risks posed by the transaction — left the decision to Mr. Biden, who had said that U.S. Steel should remain American-owned and -operated.

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“It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad,” Mr. Biden said in a statement last Friday morning. “And it is a fulfillment of that responsibility to block foreign ownership of this vital American company.”

The committee was created in the 1970s to screen international mergers and acquisitions for national security concerns. Over the years the definition of national security has broadened, and in many cases the work of the panel has been consumed by political considerations, often with a focus on keeping Chinese investments out of America.

Since 1990, eight other foreign transactions have been blocked by presidents, according to the Congressional Research Service.

The companies are hopeful that a 2012 case involving a Chinese-owned company that tried to buy American wind-farm projects could provide an opening for more scrutiny of how CFIUS handled the steel deal. The Obama administration blocked that deal, but after the company filed a lawsuit an appeals court agreed that the company, Ralls Corporation, had a right to see and rebut certain evidence that was used to block the transaction.

The Obama administration and the company ultimately settled the lawsuit.

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The legal challenge by U.S. Steel and Nippon is on different grounds than that case. If successful, this suit would herald sweeping changes to the authority of the U.S. government to vet foreign transactions.

While the Biden administration’s move won praise from the steelworkers union, it drew scorn from many economists and legal experts who warned that the president’s decision would deter foreign investment.

“What’s infuriating is that Biden claimed to stand for the rule of law and for our international alliances,” said John Kabealo, a Washington-based lawyer who specializes in cross-border transactions. “He told voters ad nauseam that Trump was xenophobic and self-dealing, and now he slaps one of our most important allies in the face on the thinnest of pretenses.”

Although President-elect Donald J. Trump has previously said that he would block the Nippon bid, the companies have remained hopeful that he might reconsider that position if given the opportunity to help broker a satisfactory deal.

But on Monday, Mr. Trump made clear that he still does not want U.S. Steel to be sold.

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“Why would they want to sell U.S. Steel now when Tariffs will make it a much more profitable and valuable company? Mr. Trump wrote on social media. “Wouldn’t it be nice to have U.S. Steel, once the greatest company in the World, lead the charge toward greatness again?”

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Politics

Why Does Trump Want Greenland?

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Why Does Trump Want Greenland?

President-elect Donald J. Trump’s attention returned Tuesday to an idea that has fascinated him for years: acquiring Greenland for the United States. In a news conference on Tuesday, he refused to rule out using military or economic force to take the territory from Denmark, a U.S. ally.

“We need Greenland for national security purposes,” he said, arguing that Denmark should give it up to “protect the free world.” He threatened to impose tariffs on Denmark if it did not.

Earlier in the day, Mr. Trump wrote on social media that the potential American acquisition of the Arctic territory “is a deal that must happen” and uploaded photos of his eldest son, Donald Trump Jr., who was visiting Greenland.

“MAKE GREENLAND GREAT AGAIN,” the president-elect added.

After the news conference, Denmark sharply rebuked the proposal, saying that the world’s largest island is not for sale.

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During his first term, Mr. Trump urged his aides to explore ways to purchase Greenland, a semiautonomous territory known for its natural resources and strategical location for new shipping routes that can open up as the Arctic ice melts. A few weeks ago, Mr. Trump reignited the conversation through social media, asserting that “the ownership and control of Greenland is an absolute necessity.”

Greenland’s vast ice sheets and glaciers are quickly retreating as the Earth warms through accelerating climate change. That melting of ice could allow drilling for oil and mining for minerals such as copper, lithium, nickel and cobalt. Those mineral resources are essential to rapidly growing industries that make wind turbines, transmission lines, batteries and electric vehicles.

Because of higher temperatures, an estimated 11,000 square miles of Greenland’s ice sheets and glaciers have already melted in the past three decades, an area roughly the size of Massachusetts.

In 2023, the Danish government published a report that detailed Greenland’s potential as a rich deposit of valuable minerals. The Arctic island has “favorable conditions for the formations of ore deposition, including many of the critical raw minerals.”

The melting ice in the Arctic is also opening up a new strategic asset in geopolitics: shorter and more efficient shipping routes. Navigating through the Arctic Sea from Western Europe to East Asia, for example, is about 40 percent shorter compared to sailing through the Suez Canal. Ship traffic in the Arctic has already surged 37 percent over the past decade, according to a recent Arctic Council report.

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China has shown significant interest in a new route through the Arctic, and in November, China and Russia agreed to work together to develop Arctic shipping routes.

Mr. Trump has repeatedly called climate change a “hoax.” But one of his former national security advisers, Robert C. O’Brien, suggested that its consequences are one of the reasons that Mr. Trump is interested in making Greenland a U.S. territory.

“Greenland is a highway from the Arctic all the way to North America, to the United States,” he told Fox News. “It’s strategically very important to the Arctic, which is going to be the critical battleground of the future because as the climate gets warmer, the Arctic is going to be a pathway that maybe cuts down on the usage of the Panama Canal.”

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Outgoing WH official calls for US to bolster cybersecurity workforce by hiring non-degree holders

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Outgoing WH official calls for US to bolster cybersecurity workforce by hiring non-degree holders

The White House’s outgoing cyber czar, Harry Coker, called for three key things to meet the growing threat of digital attacks: more funding, deregulation and opening up cyber jobs to those without college degrees.

As adversaries like Iran, China and Russia lob near-constant attacks on the U.S. digital infrastructure, “we have to prioritize cybersecurity within federal budgets” President Joe Biden’s national cyber director said at an event with the Foundation for Defense of Democracies in Washington, D.C.

“I would love for the incoming administration, or any administration, to recognize the priority of cybersecurity,” Coker said. 

He added that he understands the U.S. is in a “tough budget situation.”

“I get that, and I support making progress towards reducing the deficit, but we have to prioritize cybersecurity within our current budgets,” he said.

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“I would love for the incoming administration, or any administration, to recognize the priority of cybersecurity,” Coker said. (Kevin Dietsch/Getty Images)

At the same time, the Biden appointee railed against “duplicative federal regulation” and said he’d heard from those working to protect the nation’s online infrastructure that they spend “a staggering 30 to 50%” of their time working to comply with regulation, rather than ensuring protection from hacks.

“Armed with the industry’s call to streamline, we worked with Congress to write bipartisan legislation that would bring all stakeholders, including independent regulators, to the table to advance the regulatory harmonization,” he went on.

TOP REPUBLICAN DEMANDS ‘COSTS’ FOR CHINA AFTER IT HACKED TREASURY DEPT IN YEAR MARKED BY CCP ESPIONAGE

“Many of us were disappointed that this has not become law yet, but we have laid the groundwork for the next administration in Congress to do the right thing for our partners in the private sector.”

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His urging comes as the U.S. is grappling with the fallout of one of China’s biggest attacks on American infrastructure in history, dubbed Salt Typhoon. 

A Chinese intelligence group infiltrated nine U.S. telecommunications giants and gained access to the private text messages and phone calls of Americans, including senior government officials and prominent political figures. 

Person works on a computer

China was behind a slew of major cyberattacks on the U.S. this year. (PHILIPPE HUGUEN/AFP via Getty Images)

China Xi Jinping

A Chinese intelligence group infiltrated nine U.S. telecommunications giants recently. (REUTERS/Adriano Machado)

The Salt Typhoon hackers also gained access to an exhaustive list of phone numbers the Justice Department had wiretapped to monitor people suspected of espionage, granting them insight into which Chinese spies the U.S. had caught onto and which they had missed.

FBI’S NEW WARNING ABOUT AI-DRIVEN SCAMS THAT ARE AFTER YOUR CASH

China was also behind a “major” hack of the Treasury Department in December, gaining access to unclassified documents and the workstations of government employees. 

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And earlier this year, Commerce Secretary Gina Raimondo’s communications were intercepted by Chinese intelligence, just as she was making determinations about new export controls on semiconductors and other key technologies. The same hacking group also targeted officials at the State Department and members of Congress.

Amid this onslaught of attacks, Coker said the cyber industry is suffering a recruitment issue. 

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“Today there are nearly 500,000 open cyber jobs in this great nation,” he said. 

“The federal government is leading by example… removing federal employee and contractor hiring from a focus on college degrees to a focus on what we’re really after: skills.

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“When we do away with the four-year college degree requirement, we expand our talent pool,” Coker went on. “Many Americans don’t have the time or the means to go to college for four years, but they can do it for two years or less.”

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Opinion: What antiabortion activists want next

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Opinion: What antiabortion activists want next

The state of Texas filed a major lawsuit on Dec. 12 against a New York doctor who mailed abortion pills to a Collin County, Texas, woman, arguing that the doctor was practicing medicine without a Texas license and violating the state’s abortion ban. The suit raises messy legal questions about whether one state can haul a doctor abiding by the law in another state into its courts, or enforce a judgment if it wins. More than that, however, the suit is a window into the next battlefield over abortion rights — and how abortion pills and telemedicine are reshaping the politics of abortion in America.

The antiabortion movement’s endgame is establishing fetal personhood — the idea that life and constitutional rights begin at the moment sperm fertilizes an egg. Fetal personhood was referenced in the 2024 GOP platform and embraced in a strategy endorsed by most leading antiabortion groups. It has been a focal point of the movement’s efforts for 50 years.

But with blue states and many red states reaffirming a right to abortion, fetal personhood doesn’t seem like it’s going to come to pass anytime soon. In the meantime, abortion opponents have set their sights on shutting down access to abortion pills — mifepristone and misoprostol. The Supreme Court rebuffed one Texas lawsuit targeting mifepristone in June (on the basis of standing), but as the new case indicates, that hasn’t discouraged the antiabortion movement.

Here’s why: Medication abortion, also called chemical abortion, has made it difficult to enforce abortion bans in the states where they exist — indeed, even with Roe vs. Wade reversed, studies show an increase in the number of abortions performed annually in the U.S. Abortion pills also make it harder to frighten doctors and harder to stigmatize the termination of pregnancy.

When all abortions were surgical, the procedure had to take place in bricks-and-mortar facilities. The clinics became targets for protest and sometimes violence and vandalism. Abortion pills, however, can be prescribed remotely, through a telehealth consultation, and they are taken at home very early in a pregnancy. Pills make abortion more private, distancing patients from clinic protests, and their effects may resemble miscarriage, which already occurs in up to 20% of known pregnancies — so much so that physicians have no reliable way of telling the symptoms apart. Along with backlash against the reversal of Roe, the nature of medication abortion seems to be reshaping how Americans think about terminating a pregnancy: The number of those who see abortion as a moral decision has increased in recent years.

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The Texas lawsuit is part of a much broader antiabortion strategy that will unfold in the new year. Besides targeting telemedicine and pills, antiabortion groups plan to pursue anyone who aids or abets abortion — for example, internet service providers that allow websites to provide information about abortion pills and where to get them. Other proposals copy a Louisiana law that designates safe and effective drugs used in abortion as “controlled substances.”

In addition to these maneuvers, look for abortion opponents to lobby the Trump administration to reinterpret the Comstock Act, a 19th century obscenity law, to make it illegal to send anything used in abortions by mail. That could create the equivalent of a nationwide ban, which Congress so far won’t legislate and voters don’t want.

And there are other steps the Trump administration could take that would dramatically change abortion access. In 2023, the Food and Drug Administration made changes to the restrictions governing mifepristone and telemedicine abortion appointments. Ever since, antiabortion groups have developed a grab-bag of arguments against the FDA’s rules. They argue that the consensus of peer-reviewed studies is wrong and that mifepristone is extremely dangerous. They also have argued that mifepristone and fetal “remains” are an environmental hazard polluting groundwater.

Robert F. Kennedy Jr., who would have oversight of the FDA if he is confirmed as Trump’s pick to be secretary of the Department of Health and Human Services, said he was pro-choice on the campaign trail, but he also has signaled openness to the antiabortion movement. Claims about drug safety and environmental hazards might resonate with Kennedy, who is an opponent of Big Pharma and once worked in environmental law.

The Supreme Court decision overturning Roe has done nothing to end abortion battles; instead, it has given them new life. Fights over telemedicine consultations, mail-order access to abortion pills and FDA safety rules could make abortion bans far more effective, reshape the procedure in states that protect abortion rights and expand the power of one state to dictate policy in another.

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Most important: If abortion opponents succeed in making abortion pills inaccessible, the stigma surrounding abortion may well increase, and access to the procedure decrease. That’s why antiabortion groups have been relentless in their pursuit of pills. Nothing less than Americans’ view of abortion itself is on the line.

Mary Ziegler is a law professor at UC Davis. Her latest book, “Personhood: The New Civil War over Reproduction,” is scheduled for publication in April.

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