U.S. lawmakers cheer as China steel firm backs out

Reuters on Yahoo ^ | 8/19/10 | Doug Palmer

[NormsRevenge]

WASHINGTON (Reuters) – Lawmakers from U.S. steel-producing states on Thursday cheered a decision by Chinese steel company Anshan Iron & Steel Group to back off plans to invest in a U.S. steel plant.

"Not only would this venture have set a dangerous precedent further undermining our domestic steel market, but it posed serious national security concerns," Representative Tim Murphy, a Pennsylvania Republican, said in a statement.

Anshan's decision comes at a time when China has pushed past Japan to become the world's second largest economy and high U.S. unemployment and a huge budget deficit are causing political anxiety in the United States.

Murphy and Representative Pete Visclosky, an Indiana Democrat, led a group of 50 U.S. lawmakers who had urged the Obama administration's Committee on Foreign Investment in the United States to investigate the proposed investment.

The lawmakers said they did not know whether CFIUS had any role in the Chinese company's decision.

But "it is our hope that CFIUS remains vigilant in ensuring that all investments in the United States are fully vetted for the purpose of protecting American national security and American jobs," Visclosky said.

Chen Ming, vice-chairman of Angang Steel Co Ltd, told reporters earlier on Thursday in Hong Kong that the company's parent, Anshan Iron & Steel, had decided to put its investment plan on hold because of the U.S. lawmakers' opposition.

[stylin19a]

they’ll be back

[Ciexyz]

Tim Murphy is my congressman and I respect his opinion, so he must be right on this one. First I heard of this.

[Cringing Negativism Network]

Boo-yah!

Now, start turning around the container ships.

[kosciusko51]

I live in Mr. Murphy's district as well. In general, he seems to be a good guy, but there were a couple of votes he made that I thought were a little wobbly. I can't remember exactly what they were.

I think it would be better for China to invest in the US than for them to steal our technology and build it in China.

[chasio649]

Wait a second...where are the people to tell us how wrong we are being concerned about American jobs and that nonsense?

[traditional1]

So creating JOBS in the USA, even by a foreign-owned firm is BAD?

I suspect the USW (United Steel Workers) don't want competition from NON-UNION COMPETITIVE businesses, and neither do their benefactors; the Democrat Party.

[Brilliant]

I am trying to figure out why its such a great thing that the Chinese don’t want to invest in the US. If foreign investment is bad, then why don’t we ban it? Then we can be just like the Chinese, Russians, and a lot of other third world countries. No capital investment. No income. Of course it would be better to let Americans invest in America. But they even penalize that. Irrespective though the fact that investors have been chased off by government is nothing to celebrate.

[Rashputin]

It's a bunch of dimwits protecting their union pals from competing with steel mills with non-union workers. The Chinese can't stick three shifts a day on some supersonic aircraft and have them commute to the damn plant nor can they pick up the plant and take it all home on a whim. What the hell is wrong with them investing all that cash we send them right here in the US?

There's more to this than meets the eye (or shines through the BS press release) and someone needs to explain why we're turning away manufacturing investment and jobs in the middle of a deep recession, not how happy we should be about not getting some of our exported dollars back as investment in the US.

JMHO

[artaxerces]

“I think it would be better for China to invest in the US than for them to steal our technology and build it in China.”

Which is exactly what that Chinese steel firm is looking to do. They are trying to build steel manufacturing plants in the U.S, using non-union labor. However U.S law-makers + the unions have killed it.

[ponder life]

Chinese investments into the US will continue to flow. I wouldn't be surprised if some of the most sophisticated companies will be purchased by the Chinese.

The problem with steel, especially when we are talking about the Pennsylvania area, is that it is a union strong hold. So anyone trying to under cut steel made by American unions will face opposition.

The flow of Chinese investments into the US, for the most part, won't be stopped. China will simply create too many jobs to be turned away in her entirety. Its only when she treads on ..... territories held by the good ol boys :) .... that she will face opposition. Most of America will actually embrace the continued future opening of Chinese owned factories. As long as they don't threaten union strong holds.