To amend the Defense Production Act of 1950 to clarify and strengthen provisions pertaining to national security takeovers.

Amends the Defense Production Act to authorize the President or his designee to conduct a review to determine whether an investigation should be conducted to determine the effects on national security of certain mergers, acquisitions, and takeovers by foreign persons which could result in foreign control of persons or activities engaged in interstate commerce in the United States. (Currently, there is no review process prior to such investigation.)

Authorizes the Secretaries of Commerce and Defense, if the President's designee is an interagency committee, to collect and analyze such takeover proposals, identify the plans of the acquiring foreign person with respect to the transfer of technology, and make recommendations to the committee concerning the need to conduct such an investigation. Authorizes the Secretaries to: (1) solicit assurances from the foreign person that their plans will not impair the national security; (2) conduct a review to determine if such assurances are being implemented and complied with; and (3) request that the interagency committee conduct an investigation if the Secretary of Commerce finds that a foreign person is not appropriately implementing or complying with the assurances. Requires a foreign person making a direct investment in a United States person (entity) to file with the President or his designee an advisement which discloses specified information with respect to such investment.

Requires each agency serving on the interagency committee to identify technologies which are essential to the industrial and technological base of the United States, a list of which shall be published in the Federal Register. Requires the Secretaries to identify, in connection with any merger, acquisition, or takeover involving a foreign person, any essential technology which is involved. Requires an investigation to be commenced if an essential technology is found to be involved. Requires the foreign person, as part of such investigation, to make assurances that the involvement of such essential technology will not adversely affect the national security by eroding the industrial and technological base of the United States.

Authorizes the President to suspend or prohibit any merger, acquisition, or takeover by a foreign person in the United States if the President believes that national security might be impaired by the effects such takeover could have on the industrial or technological base of the United States.

Allows General Accounting Office officials and employees access to information collected by the Secretary of Commerce concerning foreign direct investment in the United States for purposes of responding to requests for information and conducting research and analysis for the Congress. Directs the President to report to the Congress the results of a study conducted to identify trends in foreign direct investment in the United States.