Exon-Florio National Security Test for Foreign Investment [Updated February 23, 2006] [open pdf - 37KB]
"The proposed acquisition of Unocal by the China National Offshore Oil Corporation (CNOOC) has sparked intense concerns among some Members of Congress and the public and has reignited the debate over what role foreign acquisitions play in U.S. national security. While the United States actively promotes internationally the policy of relaxing rules concerning foreign investment, including the national treatment of foreign firms, some in Congress and others question some aspects of this policy as it relates to allowing foreign competitors unlimited access to the Nations industrial base. Much of this debate focuses on the activities of a relatively obscure committee, the Committee on Foreign Investment in the United States (CFIUS) and the Exon-Florio provision, which gives the President broad powers to block certain types of foreign investment. This report will be updated as warranted by events."
CRS Report for Congress, RS22197
Federation of American Scientists: http://www.fas.org/main/home.jsp