,,ii  #aaeth ,,congress  #ast ,session  
,s4 #aihc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,october #ah1  
#bjag ,mr4 ,brown 7for himself and ,mr4 
,grassley7 introduced the following     
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to establish a process to review     
foreign investment to determine the     
economic effect of the investment on the
 ,united ,states1 and for other         
purposes4  #a4 ,short title  ,this ,act 
may be cited as the ,united ,states     
,foreign ,investment ,review ,act of    
#bjag4  #b4 ,authority to review        
transactions for economic effect on the 
,united ,states  7a7 ,in general ,the   
,trade ,act of #aigd 7#ai ,u4,s4,c4     
#bajb et seq47 is amended by adding at  
the end the following3  ,x ,authority to
 review transactions for economic effect
 on the ,united ,states  #ajja4         
,definitions ,in this title3  7#a7      
,control ,the term control means the    
power1 whether direct or indirect and   

whether or not exercised1 through the   
ownership of a majority or a dominant   
minority of the total outstanding voting
 interest in an entity1 representation  
on the board of directors of an entity1 
proxy voting on the board of directors  
of an entity1 a special share in the    
entity1 a contractual arrangement with  
the entity1 a formal or informal        
arrangement to act in concert with an   
entity1 or any other means1 to          
determine1 direct1 make decisions1 or   
cause decisions to be made1 with respect
 to important matters affecting the     
entity4  7#b7 ,covered transaction ,the 
term covered transaction means any      
merger1 acquisition1 takeover1 or       
investment1 or the establishment of a   
new entity1 by or with any person1      
that--  7,a7 is proposed or pending     
after the date of the enactment of the  
,united ,states ,foreign ,investment    
,review ,act of #bjag2 and  7,b7 could  
result in foreign control of any person 
that--  7i7 is engaged in interstate    

commerce in the ,united ,states2 and    
7ii7 7,i7 in the case of a transaction  
involving a state-owned enterprise1 is  
valued at #ej1jjj1jjj or more2 and      
7,,ii7 in the case of any other         
transaction1 is valued at #a1jjj1jjj1jjj
 or more4  7#c7 ,person ,the term person
 means an individual or entity4  7#d7   
,secretary ,the term ,secretary means   
the ,secretary of ,commerce4  7#e7      
,state-owned enterprise ,the term       
state-owned enterprise means--  7,a7 an 
entity that is owned by1 controlled by1 
or under the influence of1 a national1  
provincial1 or local government in a    
foreign country or an agency of such a  
government2 or  7,b7 an individual      
acting under the direction or the       
influence of a government or agency     
described in subparagraph 7,a74  #ajjb4 
,authority to review transactions for   
economic effect on the ,united ,states  
7a7 ,mandatory notification by parties  
,each party to a covered transaction    
shall submit a written notification of  

the transaction to the ,secretary4  7b7 
,review  7#a7 ,in general ,upon         
receiving written notification of a     
covered transaction under subsection    
7a71 the ,secretary shall--  7,a7 review
 the transaction to determine the       
economic effect of the transaction on   
the ,united ,states1 based on the       
factors described in subsection 7d72 and
  7,b7 based on the results of the      
review1 take appropriate action under   
subsection 7c7 with respect to the      
transaction4  7#b7 ,unilateral          
initiation of review ,the ,secretary may
 initiate a review under paragraph 7#a7 
of a covered transaction for which      
written notification is not submitted   
under subsection 7a74  7#c7 ,initiation 
of review by request from ,congress ,the
 ,secretary shall initiate a review     
under paragraph 7#a7 of a covered       
transaction 7determined without regard  
to the value of the transaction under   
section #ajja7b77;,b77ii77 if the       
chairperson and the ranking member of   

the ,committee on ,finance of the       
,senate or the ,committee on ,ways and  
,means of the ,house of ,representatives
 requests the ,secretary to review the  
transaction4  7#d7 ,notification to     
,united ,states ,trade ,representative  
,upon receiving a written notification  
of a transaction under subsection 7a7 or
 initiating a review of a transaction   
under paragraph 7#b7 or 7#c71 as the    
case may be1 the ,secretary shall notify
 the ,united ,states ,trade             
,representative4  7c7 ,action  7#a7     
,action after initial review ,not later 
than #ae days after receiving a written 
notification of a transaction under     
subsection 7a7 or initiating a review of
 a transaction under paragraph 7#b7 or  
7#c7 of subsection 7b71 as the case may 
be1 the ,secretary shall--  7,a7 approve
 the transaction2 or  7,b7 inform the   
parties to the transaction that the     
,secretary requires additional time to  
conduct a more thorough review of the   
transaction4  7#b7 ,action after        

extended review  7,a7 ,in general       
,subject to subparagraph 7,b71 if the   
,secretary informs the parties to a     
transaction under paragraph 7#a77;,b7   
that the ,secretary requires additional 
time to conduct a more thorough review1 
the ,secretary shall1 not later than #de
 days after receiving the written       
notification of the transaction under   
subsection 7a7 or initiating a review of
 the transaction under paragraph 7#b7 or
 7#c7 of subsection 7b71 as the case may
 be--  7i7 complete that review2 and    
7ii7 approve the transaction1 prohibit  
the transaction1 or require the parties 
to the transaction to modify the        
transaction and resubmit the modified   
transaction to the ,secretary for review
 under this section4  7,b7 ,extension of
 deadline ,the ,secretary may extend the
 deadline under subparagraph 7,a7 with  
respect to the review of a transaction  
by not more than #ae days4  7#c7 ,cases 
of inaccurate or inadequate information 
,the ,secretary may prohibit a          

transaction under this subsection if the
 ,secretary determines that any party to
 the transaction provides to the        
,secretary inaccurate or inadequate     
information in response to inquiries of 
the ,secretary as part of a review of   
the transaction under subsection 7b74   
7#d7 ,public availability of decision   
,each decision under this subsection to 
approve1 prohibit1 or allow for         
modification of a transaction1 and a    
justification for each such decision1   
shall be made available to the public4  
7d7 ,factors ,to be considered ,in      
taking action with respect to a         
transaction under subsection 7c71 the   
,secretary shall consider any economic  
factors the ,secretary considers        
relevant1 including--  7#a7 the         
long-term strategic economic interests  
of the ,united ,states2  7#b7 the       
history of distortive trade practices in
 each country in which a foreign party  
to the transaction is domiciled1 as     
informed by the report of the ,united   

,states ,trade ,representative required 
by subsection 7h72  7#c7 control and    
ownership of each foreign person that is
 a party to the transaction2  7#d7      
impact on the domestic industry1 taking 
into consideration any pattern of       
foreign investment in the domestic      
industry2 and  7#e7 any other factors   
the ,secretary considers appropriate4   
7e7 ,public comments ,the ,secretary    
shall--  7#a7 make available to the     
public each written notification of a   
covered transaction submitted under     
subsection 7a7 and notify the public if 
the ,secretary initiates a review under 
paragraph 7#b7 or 7#c7 of subsection 7b7
 with respect to a transaction2 and     
7#b7 in the case of a transaction that  
the ,secretary determines under         
subsection 7c77#a77;,b7 requires        
additional time for review1 provide a   
period for public comment on the        
transaction of not more than #aj days4  
7f7 ,consultations ,the ,secretary shall
 consult with the heads of such other   

,federal agencies 7or the designees of  
such heads7 in any review under this    
section as the ,secretary determines to 
be appropriate1 on the basis of the     
facts and circumstances of the          
transaction under review4  7g7 ,request 
for assistance from international trade 
commission ,the ,secretary may request  
assistance from the ,united ,states     
,international ,trade ,commission with  
respect to any of the analysis needed to
 conduct a review of a transaction under
 this section4  7h7 ,report by ,united  
,states ,trade ,representative ,not     
later than #aj days after the ,secretary
 receives a written notification of a   
transaction under subsection 7a7 or     
initiates a review of a transaction     
under paragraph 7#b7 or 7#c7 of         
subsection 7b71 as the case may be1 the 
,united ,states ,trade ,representative  
shall submit to the ,secretary a report 
with respect to the transaction that    
includes1 with respect to any country in
 which a party to the transaction is    

domiciled--  7#a7 a description of the  
history of and current issues affecting 
the trading relationship between the    
,united ,states and that country2  7#b7 
an assessment of the extent to which    
that trading relationship is reciprocal2
 and  7#c7 information relevant to that 
country from annual reports of the      
,office of the ,united ,states ,trade   
,representative1 including--  7,a7 the  
,national ,trade ,estimate under section
 #aha7;b72  7,b7 the report required by 
section #ahb 7commonly referred to as   
the ,special #cja ,report72 and  7,c7   
the report on trade enforcement         
priorities required by section #caj4    
7i7 ,coordination with ,committee on    
,foreign ,investment in the ,united     
,states  7#a7 ,in general ,in the case  
of a transaction undergoing review under
 this section and section #gba of the   
,defense ,production ,act of #aiej 7#ej 
,u4,s4,c4 #defe71 the ,secretary shall  
coordinate with the ,secretary of the   
,treasury with respect to those reviews4

  7#b7 ,review of national security     
concerns ,review of any threat posed by 
a transaction to the national security  
of the ,united ,states shall be         
conducted by the ,committee on ,foreign 
,investment in the ,united ,states under
 section #gba of the ,defense           
,production ,act of #aiej and not under 
this section4  #ajjc4 ,annual report on 
transactions reviewed ,not later than   
one year after the date of the enactment
 of the ,united ,states ,foreign        
,investment ,review ,act of #bjag1 and  
annually thereafter1 the ,secretary     
shall submit to ,congress a report on   
transactions reviewed under section     
#ajjb that includes--  7#a7 a summary of
 the results of the transactions        
reviewed by the ,secretary1 including-- 
7,a7 how many of such reviews were      
completed in the #ae-;day period        
provided for under section #ajjb7;c77#a7
 and how many of such reviews required  
longer to complete2 and  7,b7 how many  
of such transactions were prohibited2   

and  7#b7 an analysis of foreign direct 
investment by industrial sectors1 by    
country of investor1 and by type of     
transaction4  #ajjd4 ,prohibition on use
 of taxpayer dollars to encourage       
investment in the ,united ,states by    
certain state-owned enterprises ,no     
funds may be obligated or expended in   
any fiscal year by the head of any      
,federal agency to encourage investment 
in the ,united ,states by any           
state-owned enterprise that does not    
operate according to market             
considerations4  #ajje4 ,consistency    
with obligations under international    
agreements ,this title shall be applied 
in a manner consistent with the         
obligations of the ,united ,states under
 international agreements4  #ajjf4      
,regulations ,not later than #bgj days  
after the date of the enactment of the  
,united ,states ,foreign ,investment    
,review ,act of #bjag1 the ,secretary of
 ,commerce shall issue regulations to   
carry out this title4  4  7b7 ,clerical 

amendment ,the table of contents for the
 ,trade ,act of #aigd is amended by     
adding at the end the following3        
,,title ,x--,authority to review        
transactions for economic effect on the 
,united ,states ,sec4 #ajja4            
,definitions4 ,sec4 #ajjb4 ,authority to
 review transactions for economic effect
 on the ,united ,states4 ,sec4 #ajjc4   
,annual report on transactions reviewed4
 ,sec4 #ajjd4 ,prohibition on use of    
taxpayer dollars to encourage investment
 in the ,united ,states by certain      
state-owned enterprises4 ,sec4 #ajje4   
,consistency with obligations under     
international agreements4 ,sec4 #ajjf4  
,regulations4  4