Under the Constitution the Congress has the authority to regulate Interstate and Foreign Commerce. The Congress has under Exon-Florio given to the President, not the Treasury Department, the authority to block certain foreign takeovers of U.S. companies that may threaten our nation’s security. Our nation is facing new challenges as we find ourselves in a globalized economy where other countries, such as China, have clear national strategies on how to compete and raise the standard of living of their people and their national power. We must take such matters into account when administering our open investment policy and ensure we not sacrifice technologies and industries important to our national defense by taking an ideological approach on open investment. China over the last ten years has run massive and ever increasing trade surpluses with this country. This year alone our bi-lateral deficit with China will be over $200 billion. That Government has acquired a vast cache of dollars by forcing companies earning dollars to turn them in for Yuan. Since they do not buy very many U.S. made goods in comparison with what we buy from them they can use these dollars earned through trade surpluses to buy important U. S. assets and they are now starting to do so. And, while the United States approaches its dealingswith China on an ad hoc basis, the Chinese government has a strategic vision for what it wants to accomplish. We lack any coherent policy architecture, have yet to determine what U.S. priorities should be in the relationship and whose interests should be served, and end up lurching from issue to issue as they arise.