The Hill News

Congressional Steel Caucus leaders will press the White House to ensure a Chinese company’s investment in a U.S. steel producer is probed thoroughly, and allege that Treasury Secretary Timothy Geithner’s response to their concerns was “inadequate.”

Reps. Pete Visclosky (D-Ind.) and Vice Chairman Tim Murphy (R-Pa.) â€" the caucus chairs â€" on Friday released Treasury’s response to a July 2 caucus letter that raised jobs and security concerns about Anshan Iron and Steel Group’s investment in Mississippi-based Steel Development Company.

Geithner, in a brief July 12 letter that the lawmakers’ released Friday, said the multi-agency Committee on Foreign Investment in the United States (CFIUS) is “aware” of the proposed transaction, and that the Treasury-chaired group “takes very seriously its obligation to protect national security while maintaining an open investment environment.”

But Visclosky and Murphy jointly called Geit! hner’s response “disappointing” and “inadequate” on Friday and said the Steel Caucus is planning a follow-up letter to the White House.

The July 2 letter to Geithner from 50 members of the bipartisan caucus called for CFIUS to “thoroughly” probe the joint venture. The CFIUS panel reviews the security implications of proposed foreign purchases of U.S. assets.

“Anshan is China’s fourth-largest steel producer and the product of massive Chinese government subsidies, and we are deeply concerned that their direct investment in an American steel company threatens American jobs and our national security.  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 lawmakers wrote July 2.

The letter claims that subsidized financing could allow Anshan to “distort the American market and force American steelworkers to compete agains! t a blank check.” The July 2 letter also said the deal could! present security risks.

“Anshan could have access to new steel production technologies and information regarding American national security infrastructure projects,” it states.