The Biden Administration’s Efforts to Strengthen National Security Measures

The Biden administration is taking steps to enhance its authority in preventing foreign investments that may pose risks to national security. One of the proposed measures is to restrict the acquisition of land near military bases, potentially impacting Chinese companies’ ability to establish facilities in the United States.

Treasury Department’s Proposed Rule

The Treasury Department unveiled a new rule that would designate over 50 military installations in 30 states as sensitive to national security concerns. This rule aims to expand the scope of the 2018 legislation empowering the Committee on Foreign Investment in the United States (CFIUS) to block foreign land acquisitions near specific military bases.

Concerns Over Chinese Investments

Amid mounting worries from both Democrats and Republicans in Congress regarding Chinese investments in the U.S., the Biden administration has also implemented tariffs targeting Chinese imports of electric vehicles and solar panels.

Statement from Treasury Secretary Janet L. Yellen

Treasury Secretary Janet L. Yellen emphasized that the proposed rule reflects a comprehensive evaluation of CFIUS’s mandate and is not aimed at any particular country. Yellen highlighted the essential role of CFIUS in safeguarding national security by scrutinizing real estate transactions near critical military installations.

Expansion of CFIUS Jurisdiction

If approved, the rule would grant CFIUS authority to review real estate transactions within one mile of 40 additional military bases and within 100 miles of 19 new military installations. These additions follow a thorough review by various federal agencies, including the Defense Department, to identify the most sensitive facilities.