Foreign citizens and companies would need US government approval to buy property within 160km of eight military bases under a proposed rule change that follows a Chinese firm’s attempt to build a plant near an air force base in North Dakota.
The US Office of Investment Security proposed the rule yesterday. It would give expanded powers to the Committee on Foreign Investment in the United States (CFIUS), which screens business deals between US firms and foreign investors, and can block sales or force the parties to change the terms of an agreement to protect national security.
Controversy arose over plans by the Fufeng Group (阜豐集團) to build a US$700 million wet corn milling plant about 19km from the Grand Forks Air Force Base, which houses air and space operations.
As opposition to the project grew, North Dakota Governor Doug Burgum and US senators John Hoeven and Kevin Cramer, all Republicans, raised questions about the security risks, and asked the federal government in July last year for an expedited review.
CFIUS told Fufeng in September that it was reviewing the proposal and eventually concluded that it did not have jurisdiction to stop the investment.
The plans were eventually dropped after the Air Force said the plant would pose a significant threat to national security.
The new rule would affect Grand Forks and seven other bases, including three that are tied to the B-21 Raider, the nation’s future stealth bomber. The Pentagon has made significant efforts to protect its new, most-advanced bomber from spying by China. The bomber is designed to carry nuclear weapons and fly crewed and uncrewed missions.
Six bombers are in various stages of production at Air Force Plant 42, in Palmdale, California, while the two other bases in South Dakota and Texas are to serve as homes for the 100-aircraft stealth bomber fleet.
The national security concerns regarding the other bases were not immediately clear. The other five bases on the listare bases in Iowa, Arizona and Texas. The air force was not available for comment on why the eight bases were selected.
CFIUS already had the power to block property sales within 100 miles of other military bases under a 2018 law.
Hoeven said the CFIUS process for reviewing proposed projects needed to be updated.
“China’s investments in the US need to be carefully scrutinized, particularly for facilities like the Grand Forks Air Force Base, which is a key national security asset that serves as the lead for all Air Force Global Hawk intelligence, surveillance and reconnaissance operations, and has a growing role in US space operations,” Hoeven said.
US Air Force Assistant Secretary Andrew Hunter in February said in a letter to North Dakota officials that the military considered the project a security risk, but did not elaborate on the kinds of risks Fufeng’s project would pose.
The letter prompted Grand Forks officials, who had initially welcomed the milling plant as an economic boon for the region, to withdraw support by denying building permits and refusing to connect the 150 hectare site to public infrastructure.
Fufeng makes products for animal nutrition, the food and beverage industry, pharmaceuticals, health and wellness, oil and gas, and other industries. It is a leading producer of xanthan gum.
Lawmakers have also called for a review of foreign investments in agricultural lands. Earlier this year, US senators Jon Tester and Mike Rounds introduced legislation aimed at preventing China, Russia, Iran and North Korea from acquiring US farmland.
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