Nippon Steel Corp.’s thwarted bid to expand in the US could mean tougher competition for Chinese mills in an already saturated global market.

By blocking a Japanese company’s takeover of U.S. Steel, President Joe Biden said he was protecting good jobs in the American heartland. He may be putting them at risk instead.

President Joe Biden’s decision to reject a bid by Nippon Steel to acquire U.S. Steel isn’t the first time friction over trade and investment has irked Washington’s closest ally in Asia