The legislation requires senior officials review deals and participate in decisions on direct foreign investment in, mergers and acquisitions of U.S. companies dealing in infrastructure, energy and other key sectors.
The law gives a greater role in decision making to the Committee on Foreign Investment in the United States, which will be directly subordinate to the president and comprise the treasury secretary, the national intelligence chief, Pentagon chief, the secretary of state and other high-level officials.
"This legislation will strengthen our national security by ensuring a thorough and high-level review of acquisitions of U.S. companies by foreign firms that may present security considerations," the presidential press secretary said.
"The legislation also demonstrates that America can meet the challenges of the post-9/11 world while continuing to welcome foreign investment that provides well-paying jobs and economic opportunity for our citizens," he said.
The law was adopted in the wake of last year's sale of key U.S. operations in government-controlled Dubai Ports World maritime company. The deal led to a fierce port security debate, fueled by fears of terrorism in a post-September 11 world, between Bush and both Democrats and Republicans in Congress.
