US Tightens Scrutiny of Chinese Purchases of Land near Military Bases

Wyoming’s Cheyenne town is known for its cowboy culture and may not seem like a place to worry about geopolitical espionage activities. However, in May this year, the Biden administration took a rare action by issuing executive orders to shut down MineOne Partners Ltd and its affiliated companies, both of which are controlled by Chinese nationals.

This company, occupying 12 acres of land purchased in 2022, is located just one mile from the Warren Air Force Base, which houses the US Minuteman III intercontinental ballistic missiles. Without public tips, the federal government would not have known about this cryptocurrency mine using computers for bitcoin mining.

With tensions escalating between the US and China, individuals and entities with ties to China purchasing or owning land near military facilities or critical infrastructure are under strict scrutiny. Between 2020 and 2022, Chinese investors engaged in 97 land transactions, surpassing all other foreign investors.

According to the US Foreign Investment Committee’s 2022 report, these figures do not specifically list real estate transactions. The committee is responsible for tracking and investigating transactions where foreign investors purchase real estate and businesses.

The latest report from the US Department of Agriculture shows that Chinese individuals own the most land in Texas (159,640 acres), North Carolina (44,776 acres), Missouri (43,071 acres), Utah (32,447 acres), and Virginia (14,382 acres). Most of this land is held by a few Chinese investors.

However, federal legislation restricting Chinese citizens or entities from purchasing land has not made progress. President Biden’s rare executive order prohibiting foreign investment in MineOne company’s land purchase is seen as a necessary step.

In 2022, President Biden issued a separate executive order expanding the scope of CFIUS review, including foreign investments impacting the US supply chain and artificial intelligence sectors.

Chuck DeVore, Vice President of the conservative Texas Public Policy Foundation, pointed out concerns that Chinese acquisitions of land in rural areas could potentially enable eavesdropping on fiber optics, cables, and other communication pathways. He emphasized the need for comprehensive government measures to address the national security threat posed by China.

The report revealed various cases where Chinese companies or individuals purchased land near US military bases, raising national security concerns. Despite federal legislation not prohibiting hostile foreign entities from buying land, several states have taken measures to restrict land ownership near military facilities.

As testified by Navy Colonel Jim Fanell, members of the House Oversight and Accountability Committee discussed Beijing’s efforts to undermine the US on multiple fronts. The committee highlighted the severe threats posed by China and emphasized the importance of safeguarding US critical infrastructure.

The information war initiated by China against Texas’ legislation prohibiting the sale of land to enemy states or their agents was disclosed in military documents. The documents unveiled China’s attempts to influence the media and public perception, particularly through social media platforms like WeChat.

Michael Lucci, founder of the non-profit “State Armor Action,” underscored the critical national security issue surrounding foreign land ownership near power plants, grids, and water facilities. The federal government, in March, alerted states about Iran and communist China’s attempts to sabotage water infrastructure.

Considering the aggressive land purchases by Chinese companies, there are concerns about potential surveillance, espionage, and biological warfare risks. As states continue to implement laws to limit land ownership by hostile foreign states or their proxies, the need for vigilance against threats to national security remains paramount. The US must remain vigilant and take appropriate measures to protect its critical infrastructure and resources.