Proposed rule change would require U.S. government approval for land related purchases near eight military bases

The Office of Investment Security, of the Treasury Department, is rolling out a proposed rule regarding land related purchases near eight military installations. This proposal would come on the heels of concerns related to Chinese property purchases adjacent to U.S. military installations. This office reviews such deals, and can even require a change in purchase agreement to protect national security. One example for the need of such a proposal involves Fufeng Group’s plan to build a wet corn milling plant approximately 12 miles from Grand Forks Air Force Base.

From the Military Times:

WASHINGTON (AP) — Foreign citizens and companies would need U.S. government approval to buy property within 100 miles (160 kilometers) 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 Treasury Department’s Office of Investment Security is set to propose the rule on Friday. It would give expanded powers to the Committee on Foreign Investment in the United States, which screens business deals between U.S. 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 to build a $700 million wet corn milling plant about 12 miles (19 kilometers) from the Grand Forks Air Force Base, which houses both air and space operations.

As opposition to the project grew, North Dakota Gov. Doug Burgum and U.S. Sens. John Hoeven and Kevin Cramer, all Republicans, raised questions about the security risks and asked the federal government last July 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 taken great pains to protect its new, most-advanced bomber from spying by China. The bomber will carry nuclear weapons and be able to fly manned and unmanned missions.

The Military Times has the rest of the story here.

Category: Military issues