With his “golden share” in the United States, Trump turns into a more popular mechanism elsewhere in the world
US President Donald Trump has turned into a small use mechanism-the “golden session”-to ensure that the American-owned US steel does not become a threat to national security. Nippon Steel, the owner of Steelmaker in the United States soon, gives a special authority in Washington on the company’s operations, although the extent of these powers is still unknown.
Although this practice was almost not known in the United States, the “golden share” appeared in other economies as a way to ensure government supervision – or control – on the company’s operations.
On June 13, Trump released Executive order Nippon Steel’s acquisition of US Steel, who has been in a state of forgetfulness since the announcement of the deal for the first time in 2023. Both of them Previous Biden Administration The Trump administration has expressed its concerns about foreign investment and the ownership of a major American industry.
To alleviate these concerns, it declares that both NIPPON Steel and USS Steel have agreed to conclude the National Security Agreement that gives the US government a permanent “golden share” in the newly obtained company.
In an interview in late May with CNBC, American Senator Dave McC Corcmond (R-Penn) said. You have American CEO [and] American majority painting“And the government will have to agree to the main structural changes on the company, such as production levels or factory sites.
Nippon steel Wednesday She confirmed that she granted the United States a “golden class”, and said that it also gave Washington the ability to prevent production and jobs that are transferred outside the United States, and the full conditions of the National Security Agreement of the public have not been issued.
The golden share does not reach some extent to “Total control“Trump announced to reporters last week. But it gives the pregnant woman – whether it is a government or another entity – the ability to excel all other shareholders in certain circumstances.
Where do gold arrows use?
In his interview in May, McCromic indicated that the steel control structure in Nippon will be “”A fairly unique“The United States government, historically, had acquired the property interest outside the moments of the financial crisis. In 2008When Washington obtained a controlling share in major car companies as part of the emergency rescue operations.
However, this practice is more common outside the United States
The term “Golden Share” appeared for the first time in the eighties, when the administration of that began a campaign to privatize many of its state -owned institutions. The class was supposed to be a settlement solution, allowing the UK government to continue with how this The newly privatized companies have been operated.
With the prevalence of privatization insect to Europe, many European governments have also taken special governance rights to maintain the state’s influence in previously nationalized companies.
But the European Court of Justice canceled many of these arrangements in the early first decade of the twentieth century, and ruled that the golden stocks were unjustified.Restrictions on the freedom of capital movement“infringement Mastricht TreatyThe Establishment of the European Union.
In 2003, and The UK has been requested To give up its golden share in the British Airports Authority. Spain has abandoned governance rights on a group of companies in communications, banking and tobacco services. In 2007, Germany sold its golden share in Volkswagen.
However, the UK kept the golden stocks in Defense sectorThat is, in rolls-ryce, bae systems, and two Dockyards Babcock. And Westminster may think about this practice once Once again, get a golden share In the Royal Post As a condition for selling to the Czech EP group, which was completed in April.
China adopted something similar to the “golden session” in early 2010 to practice some country’s supervision of the emerging technology sector in the country. The so -called private administration shares grant the state -backed entities on the main decisions without the need for a full ownership of the state (as is common in many sectors of the Chinese economy, such as the media).
Its Chinese government has I took small classes In companies like Sina Weibo, which offers X -like Microblogging, Kuishou, a living platform. It’s too It is said Small risks of units in Chinese technology giants such as the e -commerce giant Ali Baba, Tinette Games, and Tikktok Parents have taken.
Russia also welcomed the golden session, which arose again during the local privatization campaign. In 2019, Yandex, the most popular search engine in Russia, granted its golden share to “Public Authority Foundation“Foreign observers are seen as governmental control agent. The Foundation has the authority to temporarily replace the Yandex administration.
What about the United States?
In late May, McCramek Suggest Nippon Steel “can be a model for transactions that really affect our national security.”
Industrial policy soon became an issue of the two parties in the United States, where both Democrats and Republicans support measures to protect American manufacturing (even if they differ in the best policies to achieve this). Both sides of the political gap have criticized the original Nippon Steel offer to the United States hard as a threat to national security.
Other economists have suggested that golden stocks could be a way to maintain the supervision of sectors that are a systematic risk of the American economy. In 2023, amid fears that problems at Silicon Valley Bank could turn into a wider financial crisis, Solly Amruva, a biden candidate at the same time to fill the position of a chief treasury, suggested that the American government consider a golden share in the important banks systematically.
“It will be organized to serve one purpose: the American public gave a seat on the table as banks make decisions on how to manage – or may not manage – the risks that we may have to endure in the end,” I suggested that we bear it. ” In an opinion article to The New York Times.
The new owner of the United States Steel is not very concerned about how Washington’s special forces affect work. “We keep adequate administrative freedom”, Nippon Steel Eiji Hashimoto He told reporters On Thursday, he added that the “golden session” was the idea of his company. “We will not be bound to follow anything we do.”
Nippon Steel shares have decreased about 8 % for the week so far.