By Alexandra Alper and David Shepardson
WASHINGTON (Reuters) – The Biden administration on Friday finalized a new rule expanding its authority to review foreign purchases of real estate near U.S. military bases for threats to national security.
WHY IT’S IMPORTANT
The US has become increasingly concerned about national security risks posed by China-linked purchases of real estate near sensitive military sites.
BY THE NUMBERS
The Treasury Department’s rule, first proposed in July, adds nearly 60 facilities in 30 states to the review list and would expand the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to approximately 227 military installations.
IMPORTANT QUOTE
Treasury Secretary Janet Yellen said the final rule “will significantly enhance CFIUS’s ability to thoroughly review real estate transactions near bases and enable us to deter foreign adversaries from threatening our armed forces, including by collecting information.”
CONTEXT
CFIUS, under the direction of the Treasury Department, reviews foreign investments in the United States for national security risks.
The Treasury Department rejected an attempt to retroactively apply the rule to a proposed Gotion battery plant in Michigan. Germany’s Volkswagen AG (OTC:) is the largest individual shareholder of parent company Gotion High-Tech, but Republican lawmakers say China retains “effective control” through multiple individual shareholders.
The rule will come into effect in December.
