Biden Administration Plans Stricter Regulations on Foreign Investments

The U.S. government under President Joe Biden aims to significantly expand its powers to block foreign investments. The goal is to make it more difficult to acquire land near military bases, which could particularly complicate the construction of factories in the United States by Chinese companies. On Monday, the Treasury Department proposed a new regulation that adds more than 50 military installations in 30 states to a list of sensitive security locations. If this regulation is implemented, a 2018 law that allows the Committee on Foreign Investment in the United States (CFIUS) to block foreign land purchases in the immediate vicinity of military bases would be strengthened. This proposal comes at a time when Democrats and Republicans in Congress are increasingly concerned that Chinese investments could threaten U.S. national security. In parallel, the Biden administration has introduced new tariffs to limit the import of Chinese electric vehicles and solar panels. The Treasury Department emphasized that this step is the result of a long-term review process of the committee's authorities and is not specifically directed against investments from any particular country. Treasury Secretary Janet L. Yellen stated in a press release that CFIUS plays a central role in U.S. national security by thoroughly reviewing real estate transactions near sensitive military installations. The proposed regulation would significantly expand the committee's jurisdiction and ability to fulfill this important task. The rule would allow the committee to review real estate transactions within one mile of 40 additional military installations, as well as within 100 miles of 19 new military facilities. The additions to the list followed a review by federal agencies, including the Department of Defense, to identify the most sensitive facilities.