Asian investors in America, beware: The U.S. Congress is mulling tighter controls on foreign direct investment. This time, it’s serious.
The fuss was kicked up last month, when Congress became aware of Dubai Ports World’s proposed $6.8 billion acquisition of London’s Peninsular & Oriental Steam Navigation Co. – a firm which happens to run six American ports. Though the administration blessed the deal in January after an official vetting process, many in Congress were furious because they hadn’t been briefed about it beforehand.
Now both Democrats and Republicans are threatening to enact a long list of changes to Exon-Florio, the law regulating foreign acquisitions of U.S. companies. Ironically, Exon-Florio was itself the product of prottectionism, enacted in 1988 in response to a Japanese coumpany’s bid to acquire a U.S. semiconductor firm.
