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<classification authority="sudocs">GA 1.13:NSIAD-96-61</classification>
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 <subject>Investments abroad</subject>
 <subject>Defense industry</subject>
 <subject>Foreign investments in US</subject>
 <subject>Foreign governments</subject>
 <subject>International economic relations</subject>
 <subject>National defense operations</subject>
 <subject>Executive powers</subject>
 <subject>Foreign sales</subject>
 <subject>Exporting</subject>
 <identifier>Japan</identifier>
 <identifier>France</identifier>
 <identifier>Germany</identifier>
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                      <appendix number="2170"></appendix>
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<titleInfo>
 <title>Foreign Investment: Foreign Laws and Policies Addressing National Security Concerns</title>
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<abstract>Japan, France, Germany, and the United Kingdom have the authority to
block investments for national security reasons, as does the United
States. In recent years, however, these five countries have rarely
invoked this authority.  Some of these countries have established
processes for reviewing foreign investment for national security
concerns. U.S. defense industry officials said that they had not pursued
defense-related direct investment in Japan, France, Germany, or the
United Kingdom because of economic factors, such as the size of the
defense markets in these nations, as well as informal barriers, such as
domestic company ownership structures. Most countries offer investment
incentives, but U.S. defense industry officials did not cite them as a
major inducement to invest. U.S. defense industry officials said that
they were pursuing access to overseas defense markets through strategies
other than foreign direct investment. For example, U.S. defense firms
either licensed technology to Japanese companies or made direct sales to
Japan. In the three European countries, U.S. companies formed
partnerships to compete for projects.</abstract>
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<note>Letter Report</note>
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<subject>
 <topic>Investments abroad</topic>
 <topic>Defense industry</topic>
 <topic>Foreign investments in US</topic>
 <topic>Foreign governments</topic>
 <topic>International economic relations</topic>
 <topic>National defense operations</topic>
 <topic>Executive powers</topic>
 <topic>Foreign sales</topic>
 <topic>Exporting</topic>
 <topic>Japan</topic>
 <topic>France</topic>
 <topic>Germany</topic>
 <topic>United Kingdom</topic>
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