The Biden administration is taking steps to expand its authority in blocking foreign investments by proposing a new rule that would make it more difficult for foreigners to purchase land near military bases. This move could have significant implications for Chinese companies looking to establish factories in the United States.
The proposed rule, put forth by the Committee on Foreign Investment in the United States, aims to designate over 50 military installations in 30 states as sensitive to national security concerns. This addition would strengthen a previous law from 2018, which granted the committee the power to prevent foreign entities from acquiring land within a certain proximity of a military base.
The concern over Chinese investments in the U.S. has been growing among both Democrats and Republicans in Congress, with worries about potential threats to national security. The Biden administration has also implemented new tariffs to restrict the import of Chinese electric vehicles and solar panels.
Treasury Secretary Janet L. Yellen emphasized that the proposed rule is not targeting investments from any specific country but rather aims to enhance the committee’s ability to review real estate transactions near military installations deemed sensitive to national security. The expansion of the committee’s jurisdiction is seen as crucial in safeguarding U.S. national security interests.
Under the new rule, the committee would have the authority to scrutinize real estate deals within one mile of 40 additional military installations and within 100 miles of 19 new military installations. These additions to the list were carefully identified through a review conducted by various federal agencies, including the Defense Department, to identify the most critical and sensitive facilities.
The proposed rule is part of a broader effort to strengthen the U.S. government’s oversight of foreign investments, particularly in areas that are considered vital to national security. By expanding the committee’s jurisdiction, the Biden administration aims to ensure that real estate transactions near military bases do not pose a threat to the country’s security interests.
As the U.S. continues to navigate its relationship with foreign investors, particularly those from China, these new measures underscore the government’s commitment to safeguarding national security while promoting foreign investment that aligns with the country’s strategic interests.
