White House Order Increases Scrutiny Of Foreign Investors In American Industries

Washington, D.C. (AHN) - President George Bush issued an executive order on Wednesday amending the way the government implements the Foreign Investment and National Security Act of 2007. The order calls on the Committee on Foreign Investment in the United States (CFIUS) to "review carefully the national security concerns, if any, raised by certain foreign investments into the United States."

The 2007 law gave the CFIUS the authority to investigate foreign investments in energy and infrastructure. It was proposed while the United Arab Emirates-owned Dubai Ports World was in the process of acquiring six major American ports. The company eventually abandoned its acquisition of the ports after Congress voted to block the transfer.

Congress criticized the acquisition, which was approved by CFIUS, and said the ports, once acquired by the company, could be used by terrorists to enter the United States.

The president said his new order would improve "how the United States reviews national security concerns that may arise from foreign investments."

Homeland Security Secretary Michael Chertoff and Rep. Carolyn B. Maloney (D-NY), one of the main proponents of the 2007 law, both welcomed the order from the White House, according to the Washington Times.

"I think it creates a process that will achieve the dual objectives of promoting investment but making sure we don't compromise our national security," Chertoff said.