United States Code

USC most recently checked for updates: Dec 13, 2024

§ 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
(ii)
is defined in regulations prescribed by the Secretary of Energy for the purposes of this section.
(Pub. L. 102–484, div. A, title VIII, § 835, Oct. 23, 1992, 106 Stat. 2461.)
cite as: 50 USC 4566