US-Japan Alliance Digest
Vol: 3.5

March 15, 2024

Headlines:➢ Pres Biden voices opposition to Nippon Steel’s purchase of US Steel➢ Ban on Osprey flights lifted by DOD in consultation with Tokyo➢ US Navy Secretary promotes “new maritime statecraft” in Japan➢ Allied joint statement from US-Japan Dialogue on Digital Economy➢ US-Japan Strategic Dialogue on Democratic Resilience held in DC
Image Source: Reuters

Details:•Weighing in on Japanese-owned Nippon Steel’s planned $14 billion acquisition of US Steel Corporation, US President
Biden said on March 14 that “it is vital for it to remain an American steel company that is domestically owned andoperated.” The statement is an unusual comment by a US president about a private transaction under review by theCommittee on Foreign Investment in the United States (CFIUS), but it is driven by competition for votes in abattleground state for the US presidential election. The US Steelworkers union has voiced opposition to Nippon Steel’sbid, and Biden’s opponent, Donald Trump, has already vowed to block the deal. Nippon Steel executives met withUnited Steelworkers representatives on March 7, but it is still early in their dialogue and no progress was reported.

•The Pentagon announced on March 2 that it will lift its ban on Osprey aircraft flights 3 months after it grounded theaircraft following a crash of a CV-22 Osprey near Yakushima island on Nov 29 that cost the lives of 8 US airmen. DOD
officials said they identified the cause of the mechanical failure in February, but are unable to disclose it publicly.
Defense Minister Kihara and Defense Secretary Austin spoke on March 13 about their cooperative efforts to verify
safety measures, maintain transparency with the public, and closely monitor future flights of the aircraft. Japan’s
Ground Self Defense Force plans to deploy 17 Ospreys at Kyushu’s Saga Airport as part of their island defense strategy.

•US Navy Secretary Del Toro toured shipyards in Japan and South Korea late Feb/early March, including Mitsubishi'sshipyard in Yokohama and discussed efforts to revive the US maritime industry with Japanese shipbuilding executives.
According to the US Naval Institute, China commands almost 50% of the global shipbuilding market, with South Korea
and Japan following at nearly 30% and 17%, respectively. US capacity is only 0.13%. Collaborative investment could
strengthen the US industry, and the US is also exploring ways to service its forward deployed ships in Asia at Japaneseshipyards. Del Toro also paid a courtesy call on Defense Minister Kihara.

•In a joint statement from the 14th US-Japan Dialogue on Digital Economy, the US and Japan reaffirmed theircommitment to open, interoperable, and secure digital connectivity to support the growth of the digital economy ina hybrid meeting on Feb 6-7. Discussions included private sector representatives from both countries who coveredseveral topics from secure fifth generation (5G) wireless technologies and public-private partnerships to coordination
on AI and cybersecurity. Both governments received joint statements by Keidanren and the US Chamber of Commerce.

•Japan’s Dep. Min. for Foreign Policy Mr. Yasuhiro Kobe and US Undersecretary of State for Civilian Security, Democracy,and Human Rights Ms. Uzra Zeya met in DC on March 8 for the second US-Japan Strategic Dialogue on Democratic
Resilience. Dialogue centered around building democratic resilience globally and at home through women’s economicempowerment, advancing marginalized communities such as persons with disabilities, and other measures. They also
discussed bolstering their international collaboration with the UN General Assembly and Human Rights Council.
“US-Japan Alliance Digest” is a bi-weekly summary of bilateral and related developments compiled by Sasakawa USA’s“US-Japan NEXT Alliance Initiative.” To receive “Alliance Digest” via email, contact egulum@spfusa.org