The Biden administration is aiming to significantly expand its ability to block foreign investments, particularly in efforts to curb Chinese enterprises from purchasing land near U.S. military bases. On Monday, the Treasury Department proposed a new rule to designate over 50 additional military installations in 30 states as sensitive to national security. This move would amplify the 2018 law empowering the Committee on Foreign Investment in the United States (CFIUS) to prohibit foreign land acquisitions within specific proximities to military bases.
Treasury Secretary Janet L. Yellen stated that this regulation will significantly enhance CFIUS’s jurisdiction and effectiveness in safeguarding national security. If enacted, the rule would allow CFIUS to review real estate transactions within one mile of 40 more installations and within 100 miles of 19 new sites, following a comprehensive evaluation by federal agencies, including the Defense Department.
This proposed rule aligns with growing bipartisan concerns in Congress about Chinese investments compromising national security. The Biden administration has also introduced tariffs to limit Chinese imports, including electric vehicles and solar panels. While a Treasury Department official avoided commenting on the impact of new rules on specific projects like Gotion’s $2.4 billion manufacturing facility in Michigan near Camp Grayling, the rule could add scrutiny to future property acquisitions connected to existing projects.
Experts like J. Philip Ludvigson from King & Spalding emphasize that this reflects a more stringent stance by the Department of Defense. Furthermore, states like Florida have enacted their regulations, such as prohibiting most Chinese individuals without green cards from buying residential property, showcasing local governments’ proactive measures amid federal ease.
Despite the expansion of the list of scrutinized military bases, the proposed rules would not retroactively apply to already completed transactions. These changes highlight an evolving, more cautious approach by the U.S. toward foreign investments in sensitive areas.
Original Story https://www.nytimes.com/2024/07/08/us/politics/treasury-china-real-estate-biden.html
Category : Foreign Investments,United States Politics and Government,Regulation and Deregulation of Industry,Politics and Government,United States Economy,Federal-State Relations (US)
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