The Defense Production Act gives the Committee on Foreign Investment in the United States (CFIUS) the power to review any 'covered transaction' and to mitigate any national security risk that arises as a result of the transaction. The Act also empowers the President to suspend or prohibit any covered transaction if it is deemed to threaten United States national security. Historically, covered transactions would include mergers, acquisitions and takeovers by or with a foreign person that could result in foreign control of a United States business.
"§4565. Authority to review certain mergers, acquisitions, and takeovers
(a) Definitions
For purposes of this section, the following definitions shall apply:
(1) Committee; chairperson
The terms "Committee" and "chairperson" mean the Committee on Foreign Investment in the United States and the chairperson thereof, respectively.
(2) Control
The term "control" has the meaning given to such term in regulations which the Committee shall prescribe.
(3) Covered transaction
The term "covered transaction" means any merger, acquisition, or takeover that is proposed or pending after August 23, 1988, by or with any foreign person which could result in foreign control of any person engaged in interstate commerce in the United States.
(4) Foreign government-controlled transaction
The term "foreign government-controlled transaction" means any covered transaction that could result in the control of any person engaged in interstate commerce in the United States by a foreign government or an entity controlled by or acting on behalf of a foreign government.
[...]
(b) National security reviews and investigations
(1) National security reviews
(A) In general
Upon receiving written notification under subparagraph (C) of any covered transaction, or pursuant to a unilateral notification initiated under subparagraph (D) with respect to any covered transaction, the President, acting through the Committee-
(i) shall review the covered transaction to determine the effects of the transaction on the national security of the United States; and
(ii) shall consider the factors specified in subsection (f) for such purpose, as appropriate.
(B) Control by foreign government
If the Committee determines that the covered transaction is a foreign government-controlled transaction, the Committee shall conduct an investigation of the transaction under paragraph (2). [...]" (Defense Production Act (50 U.S.C., last amended 6 January 2017), § 4565)
Defense Production Act (50 U.S.C., last amended 6 January 2017), § 4565
[<a href="https://uscode.house.gov/view.xhtml?hl=false&edition=2016&req=granuleid%3AUSC-2018-title50-section4565&num=0">Code</a>]