WASHINGTON, July 8 (Reuters) – The U.S. Treasury said on Monday it would significantly expand security review powers for foreign purchases of real estate near U.S. military bases, adding 56 facilities in 30 states to the review list. .
U.S. Treasury officials said the department’s notice opens in a new tab for proposed rulemaking and would expand the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to approximately 227 military installations. This expansion comes less than two months after the previous announcement. The CFIUS review will give Chinese-affiliated companies and their partners 120 days to sell real estate they purchased one mile from a U.S. Air Force base in Wyoming that is home to part of the U.S. nuclear missile arsenal. granted a reprieve. MineOne Partners said it plans to use the property near Cheyenne, Wyoming for cryptocurrency mining.
The United States is increasingly concerned about the national security risks posed by real estate purchases near military bases linked to China. The 2018 law expanded CFIUS’ authority to review foreign acquisitions of certain non-controlling investments in U.S. real estate transactions that raise national security concerns.
The proposed rule announced Monday would expand CFIUS’ jurisdiction over land transactions within 1 mile of an additional 40 military installations and 100 miles of an additional 19 military installations.
Eight facilities previously under CFIUS review jurisdiction will move from a one-mile radius to a 100-mile radius, while three facilities will be removed because they are subject to other designations.
Treasury officials said the rule represents the largest expansion of CFIUS’ review authority since enactment in 2018.
“This latest update significantly expands CFIUS’ real estate jurisdiction while maintaining its focus on national security,” the official said.
Among the facilities added within a 100-mile radius for CFIUS review of foreign real estate purchases are Whiteman Air Force Base in Missouri, which houses the only squadron of nuclear-capable B-2 stealth bombers; , and Barksdale Air Force Base in Louisiana, which houses the B-2 stealth bomber. -52 bomber.
Malmstrom Air Force Base in Montana, which houses a nuclear missile squadron, was moved from a one-mile radius category to a 100-mile radius category.
Complex problems in battery plants
Camp Grayling, Michigan, a National Guard training base, was also added to the 160-mile radius list. But the designation could complicate the Chinese company’s plans for a $2.36 billion electric vehicle battery parts factory located less than 100 miles from Camp Grayling.
China’s Goshon (002074.SZ) is hiring 2,350 workers to produce cathode and anode materials at its Big Rapids, Michigan, factory, even as the Biden administration aims to develop a domestic supply base for electric vehicles and batteries. It was expected to create jobs.
The one-mile radius review category included a variety of facilities, including the Scranton Army Ammunition Plant, which makes 155mm artillery shells, including those for Ukraine, several radar sites in Alaska, and Scott Air Force Base near St. Louis. Headquarters of Air Mobility Command.
Sign up here.
Report by David Lawder. Editing: Andrea Ricci
Our standards: Thomson Reuters Trust Principles opens in a new tab
Purchase license rights
Source link
