United States Code Title 50 — War and National Defense

§ 4566. Prohibition on purchase of United States defense contractors by entities controlled by foreign governments

§ 4566.

Prohibition on purchase of United States defense contractors by entities controlled by foreign governments

(a)

In general

No entity controlled by a foreign government may merge with, acquire, or take over a company engaged in interstate commerce in the United States that—

(1)

is performing a Department of Defense contract, or a Department of Energy contract under a national security program, that cannot be performed satisfactorily unless that company is given access to information in a proscribed category of information; or

(2)

during the previous fiscal year, was awarded—

(A)

Department of Defense prime contracts in an aggregate amount in excess of $500,000,000; or

(B)

Department of Energy prime contracts under national security programs in an aggregate amount in excess of $500,000,000.

(b)

Inapplicability to certain cases

The limitation in subsection (a) shall not apply if a merger, acquisition, or takeover is not suspended or prohibited pursuant to section 4565 of this title.

(c)

Definitions

In this section:

(1)

The term “entity controlled by a foreign government” includes—

(A)

any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and

(B)

any individual acting on behalf of a foreign government,

as determined by the President.

(2)

The term “proscribed category of information” means a category of information that—

(A)

with respect to Department of Defense contracts—

(i)

includes special access information;

(ii)

is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interests of the United States; and

(iii)

is defined in regulations prescribed by the Secretary of Defense for the purposes of this section; and

(B)

with respect to Department of Energy contracts—

(i)

is determined by the Secretary of Energy to include information described in subparagraph (A)(ii); and