The Biden administration is taking steps to enhance its authority in blocking foreign investments by imposing stricter regulations on land purchases near military bases. This initiative aims to restrict the establishment of foreign-owned facilities, particularly by Chinese companies, in the United States.
The Department of the Treasury unveiled a new regulation on Monday, suggesting the inclusion of more than 50 military bases in 30 states to a list of locations designated as critical to national security. The proposed rule intends to reinforce a 2018 legislation empowering the Committee on Foreign Investment in the United States (CFIUS) to prohibit foreign acquisitions of land within specific proximity to military installations.
This development comes amidst bipartisan apprehensions in Congress regarding the potential national security risks posed by Chinese investments within the country. Concurrently, the Biden administration has initiated new tariffs to restrain the influx of Chinese-made electric vehicles and solar panels.
Secretary of the Treasury, Janet L. Yellen, emphasized that the proposed rule emerged from a comprehensive evaluation of the committee’s scope and is not targeted at investments from any particular nation. Yellen stated, “CFIUS plays a crucial role in safeguarding U.S. national security by meticulously assessing real estate transactions near sensitive military sites, and this proposed rule will significantly broaden its jurisdiction and capability to fulfill this essential mission.”
The rule would grant CFIUS the authority to scrutinize real estate transactions within one mile of 40 additional military installations and within 100 miles of 19 new military bases. The selection of these sites was the outcome of a thorough assessment conducted by various federal agencies, including the Department of Defense, to identify the most sensitive facilities.
