“President Biden and I remain committed to using our strong investment screening tool to defend America’s national security, including actions that protect military installations from external threats,” Treasury Secretary Janet Yellen said in a statement.
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) – taking the total figure to 227.
CFIUS’s jurisdiction covers land purchases as well.
The concern is that a foreigner’s purchase or lease of certain properties could allow them to collect intelligence or “expose national security activities” to foreign surveillance risks, the Treasury noted.
The US has become increasingly concerned about the national security risks posed by Chinese-linked purchases of property near sensitive military sites. A 2018 law expanded CFIUS’ authority to review foreign acquisitions of some non-controlling investments in US property transactions that pose national security concerns.
The proposed rule announced on Monday would expand CFIUS’ jurisdiction over land deals within one mile of 40 additional military sites and within 100 miles of 19 additional military installations.
The Treasury official said the rule would be the largest expansion of CFIUS’ review authority since the 2018 law was enacted.
“This latest update vastly expands the reach of CFIUS’ real estate jurisdiction while maintaining its sharp focus on national security,” the official said.
MineOne Partners Limited was ordered to divest from land it bought in 2022, which sat less than a mile from Wyoming’s Francis E Warren Air Force Base – home to Minuteman III intercontinental ballistic missiles.
CFIUS had also raised concerns about the installation of “specialised” cryptocurrency mining equipment on the land which is “potentially capable of facilitating surveillance and espionage activities”.
Additional reporting by Reuters