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Code · U.S. Code · Title 50 - WAR AND NATIONAL DEFENSE · CHAPTER 55— DEFENSE PRODUCTION · SUBCHAPTER III— GENERAL PROVISIONS · § 4566

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

379 words·~2 min read·/usc/title-50/section-4566

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.)
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  • Pub. L. 102–484, div. A, title VIII, § 835
  • 106 Stat. 2461
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§ 4566
Prohibition on purchase of United States defense contractors by entities controlled by foreign governments
Pub. L.Pub. L. 102–484, div. A, title VIII, § 835
Stat.106 Stat. 2461
Cites 3Cited by 0 across 0 sources
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