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

50 U.S.C. § 4566
in effect
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(a) In generalNo 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 casesThe 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) DefinitionsIn 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.

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