United Steelworkers President Leo Gerard and other steel industry leaders recently lauded U.S. Sen. Rob Portman (R-OH) for his bipartisan efforts to protect Ohio’s iron and steel industry from Chinese interests.
Portman recently joined a bipartisan group of senators that called on Treasury Secretary Jack Lew to reject Zhongwang USA’s proposed acquisition of Aleris Corp., a Cleveland-based aluminum producer.
“(This) bipartisan letter will help ensure that the transaction be closely reviewed and rejected,” Gerard said. “Aleris and its highly skilled work force has been a leader in developing cutting-edge applications for aluminum. Its ballistic-resistant products are used in a number of military applications. China has targeted the sector for development and domination, and the proposed acquisition by Zhongwang is part of that overall strategy.”
Portman and other lawmakers noted in the letter that Zhongwang International Group, the Chinese conglomerate that owns Zhongwang USA, is currently under investigation by the Commerce Department for ignoring countervailing and antidumping duties.
Additionally, the lawmakers cited national security concerns in calling on the Committee on Foreign Investment in the United States (CFIUS) to thoroughly review — and ultimately reject — the proposed acquisition.
“It is increasingly critical that CFIUS exercise particular caution when a foreign investment transaction creates potential for military knowhow and sensitive technology to be transferred to China’s government,” the bipartisan letter states.
“Chinese entities, including state owned or state controlled enterprises, may have relationships with China’s military, compounding the risk that U.S. technologies will fall into the wrong hands. In this case, the transaction raises serious concerns that it may result in the transfer of sensitive R&D to China.”
Gerard noted recent developments in Zhongwang International Group’s alleged skirting of U.S. trade law in supporting Portman’s call for the proposed acquisition of Aleris to be rejected.
The Wall Street Journal reported in October that federal investigators are examining whether Zhongwang attempted to evade U.S. trade laws for Chinese-produced aluminum.
James Wainscott, the CEO of AK Steel, joined Gerard in praising Portman’s work to protect Ohio’s steel industry.
“AK Steel and other domestic steelmakers have faced a tidal wave of what we believe are unfairly traded imports,” Wainscott said. “Sen. Portman has been a leader in championing improvements to the trade laws which help level the playing field so our industry can remain competitive.”