From Wikipedia, the free encyclopedia
United States law regulating foreign investment
The
Exon?Florio Amendment
50 U.S.C. app 2170
is a law that was enacted by the
United States Congress
in 1988 to review
foreign investment
within the United States. (It was later amended by the
SAFE Port Act of 2006
and the Foreign Investment Risk Review Modernization Act of 2018.) The
amendment
was passed into law under the
Omnibus Trade and Competitiveness Act of 1988
and amended Section 721 of
Defense Production Act of 1950
. All foreign investments that might affect
national security
may be reviewed and if deemed to pose a threat to security, the
President of the United States
may block the investment. According to the amendment, the president may block the investment when "there is credible evidence that leads the President to believe that the foreign interest exercising control might take action that threatens to impair the national security."
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President Reagan
delegated the review process to the
Committee on Foreign Investment in the United States
.
The amendment was sponsored by
Senator J. James Exon
and
Representative James J. Florio
. The amendment was proposed over concerns of foreign acquisitions by
Japanese
businesses
.
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See also
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References
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