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50 U.S.C. § 4566 - U.S. Code - Unannotated Title 50. War and National Defense § 4566. Prohibition on purchase of United States defense contractors by entities controlled by foreign governments

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - 50 U.S.C. § 4566 - U.S. Code - Unannotated Title 50. War and National Defense § 4566. Prohibition on purchase of United States defense contractors by entities controlled by foreign governments - last updated January 01, 2024 | https://codes.findlaw.com/us/title-50-war-and-national-defense/50-usc-sect-4566/

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