Exon-Florio National Security Test for Foreign Investment [Updated August 7, 2007] [open pdf - 155KB]
From the Summary: "The proposed acquisitions of major operations in six major U.S. ports by Dubai Ports World and of Unocal by the China National Offshore Oil Corporation (CNOOC) sparked intense concerns among some Members of Congress and the public and reignited the debate over what role foreign acquisitions play in U.S. national security. The United States actively promotes internationally the national treatment of foreign firms. Some Members of Congress and others are concerned with this policy, however, particularly with how it applies to allowing government-owned companies unlimited access to the Nation's 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. Several Members of Congress introduced various measures during the 2nd session of the 109th Congress that can be grouped into four major areas: those that dealt specifically with the proposed Dubai Ports World acquisition; those that focused more generally on foreign ownership of U.S. ports, especially if the foreign entity was owned or controlled by a foreign government; those that would have amended the CFIUS process; and those that would have amended the Exon-Florio process."
CRS Report for Congress, RL33312