Description
Although a vital part of the US economy, foreign direct investment (FDI) in the United States periodically raises public and congressional alarms—as witnessed during Dubai Ports World's recent bid to acquire US port operations and Chinese firm CNOOC's attempt to buy US energy firm Unocal. Drawing fire from Congress are the Exon-Florio provisions of US law, which enable the president to block a foreign acquisition that threatens national security. This important new book finds that many proposed reforms risk harming the US economy without enhancing national security. The authors propose ways to strengthen the current interagency review of deals, including an improved process for reporting to Congress.
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Following the political controversy that erupted over possible acquisitions of US port facilities by Dubai Ports World, congressional proposals were brought forth for strengthening the Exon-Florio Amendment to the Defense Production Act in the Omnibus Trade and Competitiveness Act of 1988, which gives the president powers to block foreign acquisitions or takeovers of US companies for national security reasons. Reviewing these and other issues of foreign direct investment and national security, Graham (Columbia U.) and Marchick (a partner with Covington & Burling) argue against many of the proposed reforms, including establishing a mandatory filing requirement or introducing an economic security test, as being harmful to the economy. They do make some recommendations for reforming the review process of the Committee on Foreign Investment in the United States. Annotation ©2006 Book News, Inc., Portland, OR (booknews.com)
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