US expands rules to review foreign real estate deals near military sites

Proposed regulations come as concerns grow over national security concerns

The US Treasury Department said the update will greatly expand the reach of the committee's real estate jurisdiction. Reuters

The US Treasury Department on Monday announced it is expanding a committee's jurisdiction over foreigners' real estate transactions near military sites.

Under the proposed rule, more than 50 military sites across 30 states will be added to a list of installations overseen by the Committee on Foreign Investment in the US.

“President [Joe] Biden and I remain committed to using our strong investment screening tool to defend America’s national security, including actions that protect military installations from external threats,” Treasury Secretary Janet Yellen said.

The committee can review certain real estate transactions by foreign people or entities to determine how these would affect US national security.

The Treasury Department said the update will greatly expand the reach of the committee's real estate jurisdiction and maintain its focus on national security.

The update would expand that jurisdiction to include deals within a 1.6km radius of about 40 military sites and in 160km of an additional 19.

Although the Treasury says the Committee on Foreign Investment in the US is not country-specific, the new rule comes amid growing national security concerns over risks China poses.

In May, a Chinese-linked company was given 120 days to sell property it purchased within 1.6km of the Francis E Warren Air Force Base in Wyoming. The committee's review said the deal could have threatened US national security as the site was a strategic missile base and held intercontinental ballistic missiles.

One of the military sites added to the list was Camp Grayling in Michigan, which is not far from the proposed site of a Chinese electric vehicle battery maker.