U.S. Rep. Pete Visclosky, D-1st, chair of the Congressional Steel Caucus,
joined by other caucus members, is urging the Committee on Foreign
Investment in the United States (CFIUS) to investigate China’s recent
investment in a U.S. steel company.
According to a statement released on Friday, that investment will “enable
the Chinese government to exploit the steel market from American soil.”
A letter to U.S. Treasury Secretary Timothy Geithner, signed by 50 members
of the bipartisan caucus, raises concern over the investment of the Chinese
Anshan Iron and Steel Group in the American Steel Development Company and
the effect it would have on American jobs and U.S. national security.
“As you may know, Anshan is China’s fourth-largest steel producer and the
product of massive Chinese government subsidies, and we are deeply concerned
that their direct investment in an American steel company threatens American
jobs and our national security,” that letter reads in part.
“We believe that this investment allows the full force and financing of the
Chinese government to exploit the American steel market from American soil.”
“Anshan is controlled by China’s Assets Supervision Commission of the State
Council, and this enables the Chinese government to direct Anshan to pursue
China’s aims,” the letter states.
“It also enables Anshan to easily obtain subsidized financing, even in
today’s economic conditions, which could allow them to distort the American
market and force American steelworkers to compete against a blank check.”
“The full details of this transaction are not known to the public, and we
are concerned that it may pose national security risks as well,” the letter
“For example, Anshan could have access to new steel production technologies
and information regarding American national security infrastructure
“In summary, we write on behalf of the U.S. steel industry and its American
workers that are fighting every day to compete on a fair playing ground
against China to ask that you fully examine all of the details of this
investment to ensure that American steel is able to continue to keep our
country safe and our economy strong,” the letter concludes.