Nippon Steel to Scrap 20-Year Joint Venture With China’s Baosteel

(Nikkei Asia) — Japan’s Nippon Steel Corp. will withdraw from a joint venture with Baoshan Iron & Steel, marking a turning point in a decades-long relationship that was a symbol of China’s progress in modernizing its steel industry.

As a result, Nippon Steel’s steel production capacity in China will be reduced by 70%.

Japanese automakers, Nippon Steel’s main customers, are struggling in China due to the rise of local electric-vehicle (EV) makers. Nippon Steel has concluded that it would be difficult to expand its business there, and instead will concentrate its investment resources in the U.S. and India.