AISI Applauds Letter Sent to Treasury Secretary Geithner Urging Committee to Investigate Anshan Steel and Steel Development Company Venture

Congressional Steel Caucus Members Concerned Anshan’s Investment May Threaten U.S. Economic and National Security

Washington, D.C., 7/6/2010 - The American Iron and Steel Institute (AISI) today applauded a letter sent last Friday to U.S. 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.”

Further, the Members of the Congressional Steel Caucus say, “we believe that this investment allows the full force and financing of the Chinese government to exploit the American steel market from American soil.”  The State-owned Assets Supervision and Administration Commission of China’s State Council controls Anshan.  The Steel Caucus letter states that this Chinese government ownership and control “enables the Chinese government to direct Anshan to pursue China’s aims” and could “force American steelworkers to compete against a blank check.”

The Steel Caucus letter expresses the concern that Ashan’s investment in SDCO may pose national security risks because, for example, it could give Anshan “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 U.S. 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 U.S. steel company, this matter certainly deserves very careful and thorough review by the appropriate U.S. authorities.”

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice.  AISI also plays a lead role in the development and application of new steels and steelmaking technology.  AISI is comprised of 23 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.  AISI's member companies represent approximately 75 percent of both U.S. and North American steel capacity.  For more news about steel and its applications, view AISI’s Web site at www.steel.org.

Contact:
Nancy Gravatt
Vice President, Communications
American Iron and Steel Institute
Tel: 202.452.7115