Washington — The United States is taking steps to strengthen oversight of foreign real estate transactions near military installations, the Treasury Department announced on Monday. This move comes as concerns over Chinese land purchases continue to grow.
In a statement, Treasury Secretary Janet Yellen emphasized the importance of using strong investment screening tools to protect America’s national security, including safeguarding military installations from external threats.
Under a proposed rule, more than 50 facilities will be added to a list of sites where surrounding property transactions may be reviewed by the Committee on Foreign Investment in the United States (CFIUS), bringing the total number to 227.
It is worth noting that CFIUS’s jurisdiction also covers land purchases. This means that any foreign purchase or lease of certain properties near military installations could potentially pose a threat to national security by allowing for the collection of intelligence or exposing sensitive activities to foreign surveillance risks.
A senior Treasury official clarified that CFIUS’s jurisdiction is not specific to any particular country and is “country-agnostic.” However, the latest rule does aim to address concerns raised about certain countries, such as China and Russia.
In May, the U.S. government announced that a Chinese-owned crypto firm was prohibited from using land near a strategic U.S. nuclear missile base due to national security concerns. The company, MineOne Partners Limited, was ordered to divest from land it had purchased in 2022, which was located less than a mile from Wyoming’s Francis E. Warren Air Force Base, home to Minuteman III intercontinental ballistic missiles.
CFIUS had raised concerns about the installation of “specialized” crypto mining equipment on the land, which could potentially facilitate surveillance and espionage activities.
This latest move by the U.S. government to expand CFIUS’s oversight of foreign real estate transactions near military installations is a necessary step in protecting national security. With the increasing use of technology and the potential for foreign entities to exploit vulnerabilities, it is crucial to have strong measures in place to safeguard sensitive areas.
The proposed rule is a proactive approach to addressing potential threats and ensuring that foreign investments do not pose a risk to national security. It also sends a clear message that the United States takes the protection of its military installations seriously and will take necessary actions to defend them.
Furthermore, this move is not meant to discourage foreign investment in the United States. On the contrary, the U.S. welcomes foreign investment and recognizes its importance in driving economic growth and creating jobs. However, it is essential to strike a balance between economic benefits and national security concerns.
The proposed rule also highlights the importance of transparency and cooperation between the U.S. government and foreign investors. By providing a clear list of sites where transactions will be reviewed, foreign investors can make informed decisions and ensure compliance with CFIUS regulations.
In conclusion, the United States is taking proactive steps to protect its national security by expanding CFIUS’s oversight of foreign real estate transactions near military installations. This move is not targeted at any specific country but aims to address concerns raised about potential threats. It is a necessary measure to safeguard sensitive areas and maintain a balance between economic benefits and national security. The U.S. remains open to foreign investment, but it is crucial to ensure that such investments do not pose a risk to national security.
