Latest news with #JunkoHoriuchi
Kyodo News
4 hours ago
- Business
- Kyodo News
FOCUS: Nippon Steel buyout spat hints at business fragility in U.S.
By Junko Horiuchi, KYODO NEWS - 7 hours ago - 13:07 | Japan, All U.S. President Donald Trump's bid to attract investment threatens to undermine the appetite for corporate spending in an ironic twist, with the 18-month saga over Nippon Steel Corp.'s buyout of United States Steel Corp. showing the growing vulnerability of businesses in the U.S. market, according to analysts. The U.S. administration's earlier blocking of the $14.1 billion takeover deal was clearly driven by political motives and corporate executives will no longer be able to make decisions regarding their U.S. operations based only business criteria, they said. The wrangling in the high-profile case could lead global companies to think twice about making sizeable investments and acquisitions in the world's largest economy, with many moving to reduce their exposure to the U.S. market. "I do think many companies are pausing investments and major capital expenditures, not only because of the Nippon-U.S. Steel deal but due to general uncertainty surrounding political and economic dynamics in Washington," said Zack Cooper, senior fellow at the American Enterprise Institute. Trump had repeatedly rejected Nippon Steel's plan to take full control of U.S. Steel. But Nippon Steel, the world's fourth-largest steel producer, and U.S. Steel, the 29th largest, said Wednesday following Trump's approval of the buyout plan that they had signed a national security agreement with the U.S. government and finalized the acquisition transaction. Under the deal, the Japanese steelmaker is obliged to invest $11 billion by 2028 on bolstering the U.S. steelmaker's operations, far more than the previously planned $2.7 billion. The U.S. government also obtained a golden share allowing it to veto key management decisions, such as when reducing investment, shedding production capacity in the United States or closing plants. Nippon Steel CEO Eiji Hashimoto told a press conference on Thursday that his company had learned from a year and a half of negotiations with the U.S. government that a flexible management strategy is required. The top executive said it had been believed that governments should not get involved in business deals. "But are strengthening their involvement in economic and business matters through industrial policy," he said. Trump's predecessor, Joe Biden, initially blocked the purchase of U.S. Steel on national security grounds, saying the manufacturing icon, based in Pittsburgh, Pennsylvania -- a key battleground state in the 2024 presidential election -- should be "American-owned and American-operated." Trump also opposed the deal during the presidential race, saying the acquisition of a minority stake in U.S. Steel would not cause any issues, but foreign ownership of the company would not be good psychologically. He ordered a new review of the deal by the Committee on Foreign Investment in the United States in April with a deadline for Trump to make a final decision initially set for June 5. "Because predictability is insanely low right now in the United States, Japanese companies are going to cut back the percentage of their business in the country," said Keisuke Hanyuda, the chief executive of Owls Consulting Group. While rising costs must be dealt with, "The last thing a business wants is to lose predictability," said Hanyuda, a former Japanese trade ministry official in charge of trade talks. Nippon Steel is betting on firm demand for high-tensile strength steel in the U.S. market, capitalizing on its advanced production technology for high-end steel plates used in products such as electric vehicles. The United States is one of three growth markets for the Japanese steelmaker, compensating for shrinking domestic demand. Under Trump, the steel, aluminum, auto and semiconductor sectors have been targeted by specific tariffs driven by political pressures and companies in these industries should consider other markets for growth to hedge their risks, analysts say. Earlier this month, Trump signed an order doubling the tariffs on steel and aluminum imports to 50 percent. "I think Japanese companies will have a difficult time purchasing famous American companies in sectors that President Trump prioritizes, such as autos, steel, aluminum, and chipmaking," Cooper at the American Enterprise Institute said, though investment in other sectors may still be viable. "But any Japanese company that is considering a major deal in the United States should develop a detailed political strategy before announcing a deal, lest they suffer similar roadblocks as Nippon Steel," he said. The United States remains a lucrative market with high growth potential but some global companies are beginning to reduce their reliance on it after the tariffs imposed by Trump, Hanyuda said. The European Union and the Association of Southeast Asian Nations, for example, have resumed economic partnership negotiations, while the EU is also looking at Japan, which is part of a trans-Pacific free trade pact that took effect in 2018 without the United States. Related coverage: U.S. Steel's strategic importance growing: Nippon Steel CEO Nippon Steel finalizes deal to make U.S. Steel wholly owned Trump effectively approves Nippon Steel's takeover of U.S. Steel
Kyodo News
12 hours ago
- Business
- Kyodo News
FOCUS: Nippon Steel buyout spat hints at business fragility in U.S.
By Junko Horiuchi, KYODO NEWS - 7 minutes ago - 13:07 | Japan, All U.S. President Donald Trump's bid to attract investment threatens to undermine the appetite for corporate spending in an ironic twist, with the 18-month saga over Nippon Steel Corp.'s buyout of United States Steel Corp. showing the growing vulnerability of businesses in the U.S. market, according to analysts. The U.S. administration's earlier blocking of the $14.1 billion takeover deal was clearly driven by political motives and corporate executives will no longer be able to make decisions regarding their U.S. operations based only business criteria, they said. The wrangling in the high-profile case could lead global companies to think twice about making sizeable investments and acquisitions in the world's largest economy, with many moving to reduce their exposure to the U.S. market. "I do think many companies are pausing investments and major capital expenditures, not only because of the Nippon-U.S. Steel deal but due to general uncertainty surrounding political and economic dynamics in Washington," said Zack Cooper, senior fellow at the American Enterprise Institute. Trump had repeatedly rejected Nippon Steel's plan to take full control of U.S. Steel. But Nippon Steel, the world's fourth-largest steel producer, and U.S. Steel, the 29th largest, said Wednesday following Trump's approval of the buyout plan that they had signed a national security agreement with the U.S. government and finalized the acquisition transaction. Under the deal, the Japanese steelmaker is obliged to invest $11 billion by 2028 on bolstering the U.S. steelmaker's operations, far more than the previously planned $2.7 billion. The U.S. government also obtained a golden share allowing it to veto key management decisions, such as when reducing investment, shedding production capacity in the United States or closing plants. Nippon Steel CEO Eiji Hashimoto told a press conference on Thursday that his company had learned from a year and a half of negotiations with the U.S. government that a flexible management strategy is required. The top executive said it had been believed that governments should not get involved in business deals. "But are strengthening their involvement in economic and business matters through industrial policy," he said. Trump's predecessor, Joe Biden, initially blocked the purchase of U.S. Steel on national security grounds, saying the manufacturing icon, based in Pittsburgh, Pennsylvania -- a key battleground state in the 2024 presidential election -- should be "American-owned and American-operated." Trump also opposed the deal during the presidential race, saying the acquisition of a minority stake in U.S. Steel would not cause any issues, but foreign ownership of the company would not be good psychologically. He ordered a new review of the deal by the Committee on Foreign Investment in the United States in April with a deadline for Trump to make a final decision initially set for June 5. "Because predictability is insanely low right now in the United States, Japanese companies are going to cut back the percentage of their business in the country," said Keisuke Hanyuda, the chief executive of Owls Consulting Group. While rising costs must be dealt with, "The last thing a business wants is to lose predictability," said Hanyuda, a former Japanese trade ministry official in charge of trade talks. Nippon Steel is betting on firm demand for high-tensile strength steel in the U.S. market, capitalizing on its advanced production technology for high-end steel plates used in products such as electric vehicles. The United States is one of three growth markets for the Japanese steelmaker, compensating for shrinking domestic demand. Under Trump, the steel, aluminum, auto and semiconductor sectors have been targeted by specific tariffs driven by political pressures and companies in these industries should consider other markets for growth to hedge their risks, analysts say. Earlier this month, Trump signed an order doubling the tariffs on steel and aluminum imports to 50 percent. "I think Japanese companies will have a difficult time purchasing famous American companies in sectors that President Trump prioritizes, such as autos, steel, aluminum, and chipmaking," Cooper at the American Enterprise Institute said, though investment in other sectors may still be viable. "But any Japanese company that is considering a major deal in the United States should develop a detailed political strategy before announcing a deal, lest they suffer similar roadblocks as Nippon Steel," he said. The United States remains a lucrative market with high growth potential but some global companies are beginning to reduce their reliance on it after the tariffs imposed by Trump, Hanyuda said. The European Union and the Association of Southeast Asian Nations, for example, have resumed economic partnership negotiations, while the EU is also looking at Japan, which is part of a trans-Pacific free trade pact that took effect in 2018 without the United States. Related coverage: U.S. Steel's strategic importance growing: Nippon Steel CEO Nippon Steel finalizes deal to make U.S. Steel wholly owned Trump effectively approves Nippon Steel's takeover of U.S. Steel
Kyodo News
a day ago
- General
- Kyodo News
FOCUS: Japan's free high school policy may provoke exodus from public schools
By Junko Horiuchi, Spotlight Japan - 1 hour ago - 16:29 | All, Spotlight, Japan Japan's decision to make high school tuition virtually free, even for private institutions, is raising alarm among educators and policy experts, who warn it could accelerate an exodus from public schools and deepen inequalities. While aimed at easing households' financial burdens amid inflation, the policy -- rushed through as part of a political deal -- also risks undermining the role that public high schools have long played as "safety nets" for students with diverse needs. Critics say the government has failed to pair the tuition measure with adequate support for struggling public schools, many of which are already facing shrinking enrollment and budget shortfalls, putting their very survival in question. So far, public schools have adapted to various social changes, but they have also grappled with challenges such as excessive teacher workloads and more frequent cases requiring individualized responses such as bullying and truancy. In one English lesson at a public high school in a mountainous town in the suburbs of Tokyo, 11 first-year students took turns interviewing each other about daily activities. The 40-minute class was mostly spent with students standing and practicing conversation. Teacher Shunsuke Nakamura walked around the classroom, encouraging them to make eye contact, checking their grammar and applauding correct responses. His hands-on approach was designed to boost student confidence and foster a more engaging environment. "Although it increases the workload for teachers, I focus on offering care and education tailored to their individual needs and on motivating them to learn," Nakamura said, stressing the importance of being inspired by classmates to lift the overall level of the class. He said the school's roughly 260 students include individuals with developmental disabilities, some of whom struggle to attend regularly, and others living in poverty, with a portion enrolled in evening classes at Tokyo Metropolitan Itsukaichi High School. While praising Nakamura's efforts, Principal Mariko Matsuzaki said she feels that the school's shortcoming lies in its promotional strategy, even as unique courses are being introduced utilizing the abundant natural resources of the nearby valley. "Our school carries out educational activities in collaboration with community entities, but its unique features are not even fully recognized by local residents," Matsuzaki said, as it joins other Tokyo-run facilities in failing to fill seats. Another public institution, Tokyo Metropolitan Kokusai High School, near the capital's Shibuya district, said its strength is accepting teenagers from a range of backgrounds, with a third of its about 715 students being either Japanese children returning from living abroad with their families or foreign nationals. At the school's annual highlight occasion, students confidently delivered speeches in English on topics of their choice -- such as overcoming nervousness, passion for movies and feminism -- before an audience of around 700 in the gym. Participants also gave presentations in fluent Chinese, French, German, Korean and Spanish -- languages taught at the school as part of its curriculum -- showcasing the linguistic diversity and global outlook of the student body. An official at the institution said the move to make tuition effectively free at public and private high schools, which began earlier in Tokyo in 2024, has contributed to a drop in applicants and enrollment, even though the entrance exam remains competitive. Asked what the school offers compared with private counterparts that also promote global education, Haruki Honma, a teacher in charge of English, said, "Here, every day -- whether inside or outside class -- is international exchange, thanks to the makeup of our students." "I doubt other Japanese private schools have this much diversity in their student makeup. Students naturally learn from each other's different cultures and backgrounds, both inside and outside class," Honma said. Momentum to reform Japan's high school tuition exemption program picked up late last year as the minority ruling coalition, led by Ishiba's Liberal Democratic Party, and the opposition Japan Innovation Party drew closer. The ruling camp agreed to adopt the JIP's signature policy of tuition-free high schools to secure its support for passing the fiscal 2025 draft budget in parliament. From the 2026 academic year, income limits for aid to families with children in private high schools will be scrapped and the maximum subsidy raised to about 457,000 yen ($3,150), near average tuition levels. The cap was removed in fiscal 2025 for public schools. At this juncture, families earning under 9.1 million yen annually receive 118,800 yen in tuition support for both public and private high schools. For private schools, those earning less than 5.9 million yen may receive up to 396,000 yen in aid. In the Osaka prefectural and Tokyo metropolitan governments, which have already implemented their own free high school education programs, a shift away from public high schools has been observed. Analysts say debate by policymakers has centered only on addressing household financial burdens, with little discussion on how tuition subsidies could affect the overall education system, including the role of public schools as safety nets. The state-led policy "pressures public schools" to attract more applicants but lacks funding or extra teachers, leaving them unable to "compete with private schools" on an equal footing, said Hideyuki Konyuba, a professor of education policy at Teikyo University. "It is necessary that the state provide resources -- money and teachers -- for public" institutions, he said, adding it must also craft a vision for Japan's high school system, which while not legally compulsory is effectively viewed that way with nearly 99 percent of junior high students enrolled.
Kyodo News
a day ago
- General
- Kyodo News
FOCUS: Japan's free high school policy may provoke exodus from public schools
By Junko Horiuchi, Spotlight Japan - 5 minutes ago - 16:29 | All, Spotlight, Japan Japan's decision to make high school tuition virtually free, even for private institutions, is raising alarm among educators and policy experts, who warn it could accelerate an exodus from public schools and deepen inequalities. While aimed at easing households' financial burdens amid inflation, the policy -- rushed through as part of a political deal -- also risks undermining the role that public high schools have long played as "safety nets" for students with diverse needs. Critics say the government has failed to pair the tuition measure with adequate support for struggling public schools, many of which are already facing shrinking enrollment and budget shortfalls, putting their very survival in question. So far, public schools have adapted to various social changes, but they have also grappled with challenges such as excessive teacher workloads and more frequent cases requiring individualized responses such as bullying and truancy. In one English lesson at a public high school in a mountainous town in the suburbs of Tokyo, 11 first-year students took turns interviewing each other about daily activities. The 40-minute class was mostly spent with students standing and practicing conversation. Teacher Shunsuke Nakamura walked around the classroom, encouraging them to make eye contact, checking their grammar and applauding correct responses. His hands-on approach was designed to boost student confidence and foster a more engaging environment. "Although it increases the workload for teachers, I focus on offering care and education tailored to their individual needs and on motivating them to learn," Nakamura said, stressing the importance of being inspired by classmates to lift the overall level of the class. He said the school's roughly 260 students include individuals with developmental disabilities, some of whom struggle to attend regularly, and others living in poverty, with a portion enrolled in evening classes at Tokyo Metropolitan Itsukaichi High School. While praising Nakamura's efforts, Principal Mariko Matsuzaki said she feels that the school's shortcoming lies in its promotional strategy, even as unique courses are being introduced utilizing the abundant natural resources of the nearby valley. "Our school carries out educational activities in collaboration with community entities, but its unique features are not even fully recognized by local residents," Matsuzaki said, as it joins other Tokyo-run facilities in failing to fill seats. Another public institution, Tokyo Metropolitan Kokusai High School, near the capital's Shibuya district, said its strength is accepting teenagers from a range of backgrounds, with a third of its about 715 students being either Japanese children returning from living abroad with their families or foreign nationals. At the school's annual highlight occasion, students confidently delivered speeches in English on topics of their choice -- such as overcoming nervousness, passion for movies and feminism -- before an audience of around 700 in the gym. Participants also gave presentations in fluent Chinese, French, German, Korean and Spanish -- languages taught at the school as part of its curriculum -- showcasing the linguistic diversity and global outlook of the student body. An official at the institution said the move to make tuition effectively free at public and private high schools, which began earlier in Tokyo in 2024, has contributed to a drop in applicants and enrollment, even though the entrance exam remains competitive. Asked what the school offers compared with private counterparts that also promote global education, Haruki Honma, a teacher in charge of English, said, "Here, every day -- whether inside or outside class -- is international exchange, thanks to the makeup of our students." "I doubt other Japanese private schools have this much diversity in their student makeup. Students naturally learn from each other's different cultures and backgrounds, both inside and outside class," Honma said. Momentum to reform Japan's high school tuition exemption program picked up late last year as the minority ruling coalition, led by Ishiba's Liberal Democratic Party, and the opposition Japan Innovation Party drew closer. The ruling camp agreed to adopt the JIP's signature policy of tuition-free high schools to secure its support for passing the fiscal 2025 draft budget in parliament. From the 2026 academic year, income limits for aid to families with children in private high schools will be scrapped and the maximum subsidy raised to about 457,000 yen ($3,150), near average tuition levels. The cap was removed in fiscal 2025 for public schools. At this juncture, families earning under 9.1 million yen annually receive 118,800 yen in tuition support for both public and private high schools. For private schools, those earning less than 5.9 million yen may receive up to 396,000 yen in aid. In the Osaka prefectural and Tokyo metropolitan governments, which have already implemented their own free high school education programs, a shift away from public high schools has been observed. Analysts say debate by policymakers has centered only on addressing household financial burdens, with little discussion on how tuition subsidies could affect the overall education system, including the role of public schools as safety nets. The state-led policy "pressures public schools" to attract more applicants but lacks funding or extra teachers, leaving them unable to "compete with private schools" on an equal footing, said Hideyuki Konyuba, a professor of education policy at Teikyo University. "It is necessary that the state provide resources -- money and teachers -- for public" institutions, he said, adding it must also craft a vision for Japan's high school system, which while not legally compulsory is effectively viewed that way with nearly 99 percent of junior high students enrolled.
Kyodo News
4 days ago
- Kyodo News
FOCUS:Japan residents with foreign roots raise voices over racial profiling
By Junko Horiuchi, Spotlight Japan - Jun 11, 2025 - 09:41 | All, Spotlight, Japan Residents in Japan with foreign roots have started speaking out about being subjected to racial profiling by police, with some taking the issue to court, but supporters of their efforts warn that progress may be slow given apparent public indifference. Although a survey suggests racial profiling, or questioning by the authorities on the assumption that one is involved in a crime based on race or appearance, has been carried out for years, only recently has the issue been publicly exposed in Japan. "I am not saying Japanese police should not question citizens, including those with foreign appearance, whatsoever but I want to know the logic behind it," said Zain Syed, a 27-year-old naturalized Japanese citizen. Born to Pakistani parents, Syed has been stopped by police on the street at least 15 times. Syed said that whenever he had challenged officers on their reasons for stopping him, they insisted he was being treated no differently to anyone else. But convinced that he had been targeted solely based on his ethnicity, Syed decided to join a lawsuit. The idea behind resorting to legal action is to pressure the government to prevent discriminatory interrogations. Syed, who is self-employed and lives in the suburbs of Nagoya in central Japan, is one of three male plaintiffs in a civil suit filed in January 2024 against the Aichi prefectural police, Tokyo metropolitan police and the state, seeking 3.3 million yen ($22,850) in damages per person. The response to his Twitter post in 2019 describing police treatment, such as being asked persistently to present a foreign resident's card or passport despite identifying himself as a Japanese, also emboldened him to sue and help others in a similar or worse situation than him. "I am trying to make Japanese society better by stopping questioning based on prejudice. There are many people like myself with foreign roots who are willing to make contributions to Japan," said Syed, who came to Japan at age 8 from Pakistan along with his parents and received Japanese nationality at the age of 13. But his acquisition of citizenship is a rare step in Japan, a country whose naturalized citizens accounted for less than 0.01 percent of the total population in 2024. A recent survey carried out by lawyers in the suit backs the plaintiffs' view that the stopping and questioning of those with foreign appearances often lacks the existence of "sufficient probable cause" to suspect the person has committed or is about to commit a crime -- the requirements set out under the Police Duties Execution Act. The survey, released in February 2025, found that over 71 percent of foreign nationals in Japan had been questioned by police on the streets in the past five years, a rate around 5.6-fold higher than for Japanese. The questionnaire, the first of its kind comparing police questioning of foreign nationals and Japanese, drew answers from 521 Japanese and 422 foreigners who have lived in Japan for five years or more, excluding those from the Northeast Asian region apparently due to their similar appearances to Japanese. The difference in the frequency of being targeted for street questioning came despite the crime rate between Japanese and foreigners being roughly the same, the lawyers said, citing an analysis using official government data. According to Justice Ministry statistics, out of 182,582 people in Japan investigated by the police in 2020 for suspected Penal Code offenses, 9,529 were foreigners. With the total population in the country, including foreigners, in that year standing at 123.35 million and non-Japanese at 6.34 million, the ratio of people subjected to criminal probes was 0.15 percent for both Japanese and foreigners in Japan, the analysis showed. In January 2021, advocacy group Japan for Black Lives posted on social media a video which showed a police officer saying "in our experience many people with dreadlocks carry drugs" when questioning a mixed-race man at a station in Tokyo. The post became viral. The group's founder, Naomi Kawahara, said she could not just stand by to watch her friend being subjected to groundless questioning just because of his appearance. She added the recorded incident is only one among many experienced by her friend and other foreign-born acquaintances. On Dec. 6 of the same year, the U.S. Embassy in Japan tweeted a warning to U.S. citizens about foreigners being stopped and searched by Japanese police in suspected racial profiling incidents. The National Police Agency issued an advisory the same month to all prefectural police forces to avoid questioning people in a way that could be perceived as racially motivated. The written advisory read that when choosing who to stop and question, police officers "should not base their decisions solely on how they look, such as appearance and clothing." In November 2022, the agency's first-ever internal survey on the issue of racial profiling confirmed six inappropriate cases across four prefectural police forces in 2021, involving officers who stopped people giving reasons such as "It is rare for a foreigner to drive a car" or "People with dreadlocks have possessed drugs." In a move to enhance transparency of police questionings, police officers have started wearing body cameras on a trial basis to record interrogations in public spaces. Maurice Shelton, an African American man from Georgia who wears his hair in dreads and is another plaintiff in the suit, recounted how he had been interrogated by police at least 17 times since first coming to Japan in 2010. "Just because you look a certain way, does that mean you can be stopped randomly by the police?" the 42-year-old CEO of a personal training gym in Kanagawa Prefecture said. "Is that something that I should have to deal with because I'm a foreigner, or because I'm a black person, or because I have darker skin, or because I have this hair?" He cited as one of his motivations to join the suit the similar treatment he said he experienced in Georgia and which made him leave his country. "I've been harassed by the police in America. I've had guns pulled on me by the police," he said. "I don't want Japan to be such a place." Motoki Taniguchi, one of the lawyers representing the three plaintiffs, said in one court hearing, "Racial profiling is intentional racial discrimination exercised by public authorities and constitutes the most pernicious form of discrimination." "It is the responsibility of the court to confirm the illegality of such a practice and to put an end to it," Taniguchi said. Prospects for change, however, were muddied recently by comments by the justice minister when explaining a step to introduce pre-arrival screening for visa-free travelers from fiscal 2028 and other measures to strengthen the immigration system. "The government is being strongly urged to take action as public anxiety is growing against foreigners not following rules," Justice Minister Keisuke Suzuki said last month, in comments that were viewed as potentially encouraging discriminatory attitudes. According to Japan for Black Lives' Kawahara, the recent surge in inbound travelers and the growing discussion of "overtourism" issues, such as problematic behavior by a small minority of visitors, is likely stirring a public she says is largely ignorant of prejudice issues to accept tight surveillance over people with foreign appearances. "Some people say casually that the victims claiming they have been discriminated against are just being paranoid or that they don't see a problem in the police stopping foreigners on the street," she said. "They say, 'Why not let police stop you if you don't have anything to hide'," Kawahara said. "I believe that only by empathizing with people with foreign roots and having dialogue can people really end discrimination," she added. 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