The American Iron and Steel Institute (AISI) Tuesday applauded a letter sent last Friday to US Treasury Secretary Timothy Geithner signed by 50 members of the Congressional Steel Caucus requesting the Committee on Foreign Investment in the United States (CFIUS) to thoroughly investigate the joint venture between a leading Chinese government-owned steel producer, Anshan Iron and Steel Group, and the Steel Development Company (SDCO). In the letter, the Members of the Caucus say that they are deeply concerned that Anshan's direct investment in an American steel company "threatens American jobs and our national security" by "allowing access to new steel production technologies and information regarding American national security infrastructure projects."
AISI President and CEO, Thomas J. Gibson expressed his support for the US lawmakers' request.
"China's strategic plan for its steel industry has been to create massive state-owned and controlled national champion companies like Anshan. These companies operate at the direction of the highest levels of the Chinese government and benefit from massive government subsidies and other trade-distorting policies that give them an unfair advantage in international trade. Given the economic and national security issues raised by a Chinese government investment in a US steel company, this matter certainly deserves very careful and thorough review by the appropriate US authorities."