The Office of Investment Security of the Treasury Department will present a plan to mandate foreign firms and individuals to seek US government clearance before acquiring property within 100 miles of eight military bases.
The proposed regulation modification follows an effort by a Chinese business to construct a facility close to an Air Force installation in North Dakota.
To protect national security, the regulation would give the Committee on Foreign Investment in the United States (CFIUS) the authority to examine and even halt commercial deals between US corporations and foreign investors, according to a report from the New York Post.
The conflict focused on the Fufeng Group's intentions to build a $700 million wet maize milling plant about 12 miles (19 kilometers) from Grand Forks Air Force Base, where air and space operations are conducted.
The project's proximity to a US military base prompted its adversaries to voice worries about the possibility of spying on an air force base.
As opposed to the project developed in July of last year, North Dakota Governor Doug Burgum and Republican US Senators John Hoeven and Kevin Cramer voiced security concerns and requested an accelerated federal study, AP News reported.
CFIUS told Fufeng that it was reviewing the request in September and ultimately decided it lacked the authority to halt the investment.
The US Air Force's judgment that the facility would pose a significant danger to the country's security ultimately led to the project being shelved.
Policy Change To Affect Eight US Military Bases
The proposed regulation change would affect Grand Forks and seven other US military bases, three of which are connected to the B-21 Raider strategic bomber, designed to be able to perform precision strikes anywhere in the world and penetrate even the most challenging defenses. It is considered the cornerstone of future US deterrence strategies.
CFIUS, which examines commercial transactions between American businesses and foreign investors and may prohibit sales or compel the parties to amend an agreement's terms to protect national security, would get additional authority under the new regulation.
The choices of the places were made after taking into account several variables, including the importance of existing or upcoming operations, special use airspace, military training routes, and other reasons.
A 2018 law gave CFIUS the power to halt real estate transactions up to 100 miles from other military installations, per Military.com.
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