The Exon–Florio Amendment''

is a law that was enacted by the

United States Congress The United States Congress is the legislature, legislative branch of the federal government of the United States. It is a Bicameralism, bicameral legislature, including a Lower house, lower body, the United States House of Representatives, ...

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. They ...

was passed into law under the Omnibus Trade and Competitiveness Act of 1988 and amended Section 721 of

Defense Production Act of 1950 The Defense Production Act (DPA) 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 Con ...

. All foreign investments that might affect

national security National security, or national defence (national defense in American English), is the security and Defence (military), defence of a sovereign state, including its Citizenship, citizens, economy, and institutions, which is regarded as a duty of ...

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. The president directs the Federal government of the United States#Executive branch, executive branch of the Federal government of t ...

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 delegated the review process to the

Committee on Foreign Investment in the United States The Committee on Foreign Investment in the United States (CFIUS, ) is an inter-agency committee in the United States government that reviews the national security implications of foreign investments in the U.S. economy. CFIUS, led by the U.S ...

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

Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...

ese

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." A business entity is not necessari ...

. 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