(4) Covered transaction (A) In general Except as otherwise provided, the term “covered transaction” means— (i) any transaction described in subparagraph (B)(i); and (ii) any transaction described in clauses (ii) through (v) of subparagraph (B) that is proposed, pending, or completed on or after the effective date set forth in section 1727 of the Foreign Investment Risk Review Modernization Act of 2018. (B) Transactions described A transaction described in this subparagraph is any of the following: (i) Any merger, acquisition, or takeover that is proposed or pending after August 23, 1988 , by or with any foreign person that could result in foreign control of any United States business, including such a merger, acquisition, or takeover carried out through a joint venture. (ii) Subject to subparagraphs (C) and (E), the purchase or lease by, or a concession to, a foreign person of private or public real estate that— (I) is located in the United States; (II) (aa) is, is located within, or will function as part of, an air or maritime port; or (bb) (AA) is in close proximity to a United States military installation or another facility or property of the United States Government that is sensitive for reasons relating to national security; (BB) could reasonably provide the foreign person the ability to collect intelligence on activities being conducted at such an installation, facility, or property; or (CC) could otherwise expose national security activities at such an installation, facility, or property to the risk of foreign surveillance; and (III) meets such other criteria as the Committee prescribes by regulation, except that such criteria may not expand the categories of real estate to which this clause applies beyond the categories described in subclause (II). (iii) Any other investment, subject to regulations prescribed under subparagraphs (D) and (E), by a foreign person in any unaffiliated United States business that— (I) owns, operates, manufactures, supplies, or services critical infrastructure; (II) produces, designs, tests, manufactures, fabricates, or develops one or more critical technologies; or (III) maintains or collects sensitive personal data of United States citizens that may be exploited in a manner that threatens national security. (iv) Any change in the rights that a foreign person has with respect to a United States business in which the foreign person has an investment, if that change could result in— (I) foreign control of the United States business; or (II) an investment described in clause (iii). (v) Any other transaction, transfer, agreement, or arrangement, the structure of which is designed or intended to evade or circumvent the application of this section, subject to regulations prescribed by the Committee. (C) Real estate transactions (i) Exception for certain real estate transactions A real estate purchase, lease, or concession described in subparagraph (B)(ii) does not include a purchase, lease, or concession of— (I) a single “housing unit”, as defined by the Census Bureau; or (II) real estate in “urbanized areas”, as defined by the Census Bureau in the most recent census, except as otherwise prescribed by the Committee in regulations in consultation with the Secretary of Defense. (ii) Definition of close proximity With respect to a real estate purchase, lease, or concession described in subparagraph (B)(ii)(II)(bb)(AA), the Committee shall prescribe regulations to ensure that the term “close proximity” refers only to a distance or distances within which the purchase, lease, or concession of real estate could pose a national security risk in connection with a United States military installation or another facility or property of the United States Government described in that subparagraph. (D) Other investments (i) Other investment defined For purposes of subparagraph (B)(iii), the term “other investment” means an investment, direct or indirect, by a foreign person in a United States business described in that subparagraph that is not an investment described in subparagraph (B)(i) and that affords the foreign person— (I) access to any material nonpublic technical information in the possession of the United States business; (II) membership or observer rights on the board of directors or equivalent governing body of the United States business or the right to nominate an individual to a position on the board of directors or equivalent governing body; or (III) any involvement, other than through voting of shares, in substantive decisionmaking of the United States business regarding— (aa) the use, development, acquisition, safekeeping, or release of sensitive personal data of United States citizens maintained or collected by the United States business; (bb) the use, development acquisition, or release of critical technologies; or (cc) the management, operation, manufacture, or supply of critical infrastructure. (ii) Material nonpublic technical information defined (I) In general For purposes of clause (i)(I), and subject to regulations prescribed by the Committee, the term “material nonpublic technical information” means information that— (aa) provides knowledge, know-how, or understanding, not available in the public domain, of the design, location, or operation of critical infrastructure; or (bb) is not available in the public domain, and is necessary to design, fabricate, develop, test, produce, or manufacture critical technologies, including processes, techniques, or methods. (II) Exemption for financial information Notwithstanding subclause (I), for purposes of this subparagraph, the term “material nonpublic technical information” does not include financial information regarding the performance of a United States business. (iii) Regulations (I) In general The Committee shall prescribe regulations providing guidance on the types of transactions that the Committee considers to be “other investment” for purposes of subparagraph (B)(iii). (II) United States businesses that own, operate, manufacture, supply, or service critical infrastructure The regulations prescribed by the Committee with respect to an investment described in subparagraph (B)(iii)(I) shall— (aa) specify the critical infrastructure subject to that subparagraph based on criteria intended to limit application of that subparagraph to the subset of critical infrastructure that is likely to be of importance to the national security of the United States; and (bb) enumerate specific types and examples of such critical infrastructure. (iv) Specific clarification for investment funds (I) Treatment of certain investment fund investments Notwithstanding clause (i)(II) and subject to regulations prescribed by the Committee, an indirect investment by a foreign person in a United States business described in subparagraph (B)(iii) through an investment fund that affords the foreign person (or a designee of the foreign person) membership as a limited partner or equivalent on an advisory board or a committee of the fund shall not be considered an “other investment” for purposes of subparagraph (B)(iii) if— (aa) the fund is managed exclusively by a general partner, a managing member, or an equivalent; (bb) the general partner, managing member, or equivalent is not a foreign person; (cc) the advisory board or committee does not have the ability to approve, disapprove, or otherwise control— (AA) investment decisions of the fund; or (BB) decisions made by the general partner, managing member, or equivalent related to entities in which the fund is invested; (dd) the foreign person does not otherwise have the ability to control the fund, including the authority— (AA) to approve, disapprove, or otherwise control investment decisions of the fund; (BB) to approve, disapprove, or otherwise control decisions made by the general partner, managing member, or equivalent related to entities in which the fund is invested; or (CC) to unilaterally dismiss, prevent the dismissal of, select, or determine the compensation of the general partner, managing member, or equivalent; (ee) the foreign person does not have access to material nonpublic technical information as a result of its participation on the advisory board or committee; and (ff) the investment otherwise meets the requirements of this subparagraph. (II) Treatment of certain waivers (aa) In general For the purposes of items (cc) and (dd) of subclause (I) and except as provided in item (bb), a waiver of a potential conflict of interest, a waiver of an allocation limitation, or a similar activity, applicable to a transaction pursuant to the terms of an agreement governing an investment fund shall not be considered to constitute control of investment decisions of the fund or decisions relating to entities in which the fund is invested. (bb) Exception The Committee may prescribe regulations providing for exceptions to item (aa) for extraordinary circumstances. (v) Exception for air carriers For purposes of subparagraph (B)(iii), the term “other investment” does not include an investment involving an air carrier, as defined in section 40102(a)(2) of title 49 , that holds a certificate issued under section 41102 of that title. (vi) Rule of construction Any definition of “critical infrastructure” established under any provision of law other than this section shall not be determinative for purposes of this section. (E) Country specification The Committee shall prescribe regulations that further define the term “foreign person” for purposes of clauses (ii) and (iii) of subparagraph (B). In prescribing such regulations, the Committee shall specify criteria to limit the application of such clauses to the investments of certain categories of foreign persons. Such criteria shall take into consideration how a foreign person is connected to a foreign country or foreign government, and whether the connection may affect the national security of the United States. (F) Transfers of certain assets pursuant to bankruptcy proceedings or other defaults The Committee shall prescribe regulations to clarify that the term “covered transaction” includes any transaction described in subparagraph (B) that arises pursuant to a bankruptcy proceeding or other form of default on debt.