Monday, July 22, 2024

US to Increase Oversight of Foreign Investments in Proximity to Military Bases

US Treasury Department Expands Foreign Investment Scrutiny near Military Bases to Counter Security Threats

The US Treasury Department is ramping up efforts to protect national security by expanding its scrutiny of foreign investments near military bases, particularly focusing on potential threats from China and other countries. Treasury Secretary Janet Yellen announced a proposed rule that would broaden the jurisdiction of a panel that reviews foreign purchases of US companies and real estate.

The Committee on Foreign Investments in the US, under the leadership of Treasury, has the authority to block or place restrictions on foreign acquisitions near sensitive military installations to prevent surveillance and espionage. This move will see over 50 additional bases in 30 states come under scrutiny, bringing the total number of bases under investment security reviews to 227.

The expansion follows President Joe Biden’s directive for a Chinese company to sell a property near a Wyoming Air Force base housing intercontinental ballistic missiles. The reviews conducted by the committee are not limited to any specific country and are based on assessing threats, vulnerabilities, and national security implications.

With China representing a significant portion of transactions reviewed by the committee, concerns of economic, industrial, and cyber espionage by several countries pose a notable threat to US prosperity and security. Treasury’s assistant secretary for investment security, Paul Rosen, hailed the new rule as a crucial step in safeguarding critical military installations and defense assets, emphasizing the commitment to adapt to evolving risks.

For more news stories like this, visit bloomberg.com.

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