US cracks down on Chinese firms buying land near military base; new purchases need govt approval

The Biden administration on Friday proposed a new regulation that makes the United States government's approval must before foreign companies or individuals purchaseland close to eight USmilitary bases.The decision was taken after a Chinese firm intended to construct a milling facility next to an Air Force base in Grand Forks, North Dakota, but the Pentagon and lawmakers raised concerns, leading to the project's cancellation.

According to a proposed rule change from the Office of Investment Security at the Treasury Department, the assent of the USgovernment would be mandatory before any foreign companyor individual attempts to buy property within 100 miles of the military base in North Dakota and seven other bases in California, Texas, South Dakota, Iowa, and Arizona.

The proposed rule would give the Committee on Foreign Investment in the United States, which assesses commercial contracts between American companiesand foreign investors for any potential impact on national security, more authority to look into land sales close to the eight military installations. The proposed rule was published in the Federal Registry, as per an NBC report.

370 acres were purchased by the Chinese company Fufeng Group last year for a corn-milling facility that would have been situated around 12 miles from Grand Forks Air Force Base. According to local officials, the anticipated $700 million factory would have produced more than 200 direct jobs.

The Air Force in February wrote to officials in North Dakota, saying the military considered the planned plant a security threat.

After reading the letter, local leaders changed their minds and decided to sever ties withFufeng.

The 319th Air BaseWing, which operates surveillance drones and manages satellites in the American military's communication network, operates at the Grand Forks location.

In response to complaints that the facility could be used to spy on the Air Force base, Eric Chutorash, Chief Operating Officer of Fufeng USA, the Fufeng Group's American affiliate, disputed the claim, as per CNBC.

Fufeng develops products for a variety of markets, including oil and gas, food and beverage, pharmaceuticals, health and wellness, and animal nutrition. It is a major supplier of xanthan gum. It denied that the plant would be used for spying, reported VoA News.

Additionally, lawmakers have demanded that foreign interests in agricultural areas be reviewed. Senators Jon Tester, a Democrat from Montana, and Mike Rounds, a Republican from South Dakota, presented legislation earlier this year to stop China, Russia, Iran, and North Korea from acquiring agricultural land in the United States.

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