§4566 Prohibition on purchase of United States defense contractors by entities controlled by foreign governments

Summary

Blocks a company controlled by a foreign government from merging with, buying, or taking over a U.S. business that does interstate commerce if that U.S. business is working on a Department of Defense contract or a Department of Energy national‑security contract that needs access to specially protected information, or if in the previous fiscal year it won more than $500,000,000 in DoD prime contracts or more than $500,000,000 in DoE national‑security prime contracts. This rule does not apply if the deal is not suspended or prohibited under section 4565. An "entity controlled by a foreign government" means any organization, inside or outside the U.S., that is effectively owned or run by a foreign government, and any person acting for that government. A "proscribed category of information" means types of information the Secretaries of Defense or Energy decide would threaten U.S. national security if shared with such an entity; the Secretaries set the exact list in their regulations.