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Visclosky urges investigation of Chinese investment in US steelmaker

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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 adds.

“For example, Anshan could have access to new steel production technologies and information regarding American national security infrastructure projects.”

“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.

 

 

Posted 7/6/2010

 

 

 

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