Transactions involving more than 100 acres or valued over $1 million proposed to be closely examined.
In a bid to mitigate concerns surrounding national security vulnerabilities tied to overseas property investments, particularly those of Chinese origin, decisive actions have been taken by two distinguished U.S. lawmakers. Representative Elissa Slotkin, representing the Democratic Party, alongside Republican counterpart Blake Moore, spearheads initiatives aimed at enhancing the regulatory capabilities of the Committee on Foreign Investment in the United States (CFIUS) in scrutinizing property transactions by international entities.
“We need to have official national security experts review these land purchases with clear-eyed expertise, and without fear or favor,” Slotkin said.
According to Reuters, the lawmakers plan is to give CFIUS more power to check property deals involving countries like China, Russia, Iran, and North Korea, which are seen as security risks. They want to closely examine transactions involving more than 100 acres or valued over $1 million, as well as those trying to avoid scrutiny. The law would also let CFIUS look into existing property ownership.
This push follows Congress’s move in 2018 to expand CFIUS oversight to cover real estate near important infrastructure like airports and military bases. The objective is to guarantee that these transactions undergo comprehensive security evaluations conducted by governmental experts, devoid of external influence.
The proposed law reflects concerns from both Democrats and Republicans about Chinese investments in sensitive areas like farmland and key infrastructure. In July, some House members introduced a bill to increase scrutiny of Chinese purchases, especially around security sites and vital infrastructure. At the same time, some senators want to limit how much farmland foreigners can own.
But there are challenges ahead. A recent court ruling stopped Florida from banning Chinese citizens from buying property, showing there are legal obstacles.
Meanwhile, states like Arkansas have faced criticism for making Chinese-owned companies sell their farmland.
In October, Arkansas ordered a big foreign seed company, Syngenta, to sell 160 acres (65 hectares) of farmland in the state within two years because it’s owned by Chinese people. Syngenta was discontented by this turn of events and didn’t shy away from voicing their dissatisfaction.
