The Exon–Florio Amendment''

is a law that was enacted by the

United States Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...

in 1988 to review foreign investment within the United States. (It was later amended by the SAFE Port Act of 2006 and the Foreign Investment Risk Review Modernization Act of 2018.) The

amendment An amendment is a formal or official change made to a law, contract, constitution, or other legal document. It is based on the verb to amend, which means to change for better. Amendments can add, remove, or update parts of these agreements. The ...

was passed into law under the

Omnibus Trade and Competitiveness Act of 1988 The Omnibus Foreign Trade and Competitiveness Act of 1988 is an act passed by the United States Congress and signed into law by President Ronald Reagan. History During the 1970s, the U.S. trade surplus slowly diminished and turned into an in ...

and amended Section 721 of

Defense Production Act of 1950 The Defense Production Act of 1950 () is a United States federal law enacted on September 8, 1950 in response to the start of the Korean War.Congressional Research ServiceThe Defense Production Act of 1950: History, Authorities, and Considerati ...

. All foreign investments that might affect national security may be reviewed and if deemed to pose a threat to security, the

President of the United States The president of the United States (POTUS) is the head of state and head of government of the United States of America. The president directs the executive branch of the federal government and is the commander-in-chief of the United States ...

may block the investment. According to the amendment, the president may block the investment when "there is credible evidence that leads the President to believe that the foreign interest exercising control might take action that threatens to impair the national security."

President Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...

delegated the review process to the

Committee on Foreign Investment in the United States The Committee on Foreign Investment in the United States (CFIUS, commonly pronounced "Cifius" ) is an inter-agency committee of the United States government that reviews the national security implications of foreign investments in U.S. compani ...

. The amendment was sponsored by Senator J. James Exon and Representative James J. Florio. The amendment was proposed over concerns of foreign acquisitions by Japanese

businesses Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." Having a business name does not separ ...

. In recent years it has been suggested the amendment be used on Chinese companies.

References

United States federal commerce legislation United States federal defense and national security legislation {{US-fed-statute-stub

See also

References