The White House’s new board seats

The Trump administration’s blessing of Nippon Steel’s acquisition of U.S. Steel is a potential watershed moment for the role of government in American industry.

While details are still being finalized, the reported conditions — including an American C.E.O., a U.S.-majority board and a “golden share” granting the U.S. government veto power over certain corporate functions and board appointments — are extraordinary for such a transaction. It goes far beyond the scope of the Committee on Foreign Investment in the United States (known as CFIUS), which typically reviews deals for potential national security risks.

Key to this is the golden share. It would effectively allow Washington to inject itself into the fabric of a foreign-owned, yet strategically critical, American enterprise.

This echoes the governance models of nationalized industries in Europe and elsewhere, a stark departure from America’s historically hands-off approach. (Exceptions in the U.S. have included the government-backed rescues of General Motors and Chrysler.)

Beijing, for instance, has taken a stake in China’s tech giants, including Alibaba. The French and Brazilian governments hold significant stakes in national aerospace champions.

Will this become the new blueprint for high-stakes foreign direct investment — or outright acquisitions — in the U.S., particularly in strategic sectors like manufacturing, technology or defense?