The U.S. government is taking steps to enhance the oversight of land sales near military sites involving foreign buyers. A new Treasury rule is set to broaden the jurisdiction of the U.S. Committee on Foreign Investment in the United States (CFIUS) to include the review of real estate transactions near an additional 56 military sites, bringing the total number of sites under scrutiny to 227.
Established by a 2018 law, CFIUS is a powerful but relatively obscure government committee responsible for scrutinizing corporate transactions for potential national security implications. Comprising members from various government departments, including State, Justice, Energy, and Commerce, CFIUS has the authority to compel companies to alter their ownership structures or divest entirely from the U.S.
The recent announcement of the rulemaking comes on the heels of President Joe Biden's decision in May to block a Chinese-backed cryptocurrency mining firm from acquiring land near a Wyoming nuclear missile base, citing concerns over national security risks posed by the proximity to the base.
Treasury Secretary Janet Yellen emphasized the administration's commitment to leveraging the investment screening tool to safeguard America's national security interests, particularly in shielding military installations from external threats.
In response to a contentious situation involving plans by the Fufeng Group to construct a $700 million wet corn milling plant approximately 12 miles from the Grand Forks Air Force Base, where air and space operations are conducted, the rulemaking process commenced in May 2023 to grant CFIUS the authority to review land sales near military bases.
The proposed rule will undergo a 30-day public comment period before potential implementation. Additionally, the U.S. has recently imposed significant tariffs on various imports from China, including electric vehicles, semiconductors, solar equipment, and medical supplies.
