In recent years, the United States has witnessed a surge in the acquisition of its land by Chinese companies and investors. This trend has not only raised eyebrows but has also prompted calls for legislative action to restrict Chinese ownership of U.S. soil. As we delve into this complex issue, it’s crucial to understand the implications, scope, and the broader context of foreign land ownership in the United States.
A Small Slice of the Pie
Chinese-owned land in the U.S. is a relatively small piece of the foreign land ownership puzzle. Chinese firms and investors currently hold just over 383,934 acres of American soil. To put this in perspective, this is less land than the entire state of Rhode Island. When we compare this figure to countries like Canada, the Netherlands, Italy, the United Kingdom, and Germany, who own substantially larger portions of U.S. land, it becomes evident that China ranks a modest 18th on the list of foreign investors in the United States.
National Security Concerns Emerge
In 2021, the acquisition of land near an Air Force base in Grand Forks, North Dakota, by a Chinese company sent shockwaves of concern across the nation. Lawmakers and national security experts were quick to express their fears about the implications of this purchase. The prevailing concern was that such acquisitions could potentially provide China with influence over critical aspects of American infrastructure, including the nation’s food and energy supply. Moreover, it could grant them access to sensitive markets and vital military installations, raising significant questions about national security.
Lack of Transparency
Much of this unease stems from the lack of comprehensive data on the locations of Chinese-owned land and whether it is in proximity to military installations. In the case of the North Dakota land purchase, the government agency responsible for approving such transactions found itself in a challenging position, asserting that the matter was “out of its jurisdiction.” This lack of transparency only adds to the growing concerns surrounding this issue.
The Broader Debate
The contentious issue of Chinese ownership of U.S. land highlights the broader debate surrounding foreign ownership of American soil and its consequences for national security. While Chinese-owned land represents only a small fraction of foreign-owned land in the U.S., it has sparked significant anxiety. These concerns are rooted in the idea that the Chinese government might gain influence and access sensitive information through Chinese corporations operating within the United States.
Legal and Political Implications
Mark Kennedy, the director of the Wilson Center’s Wahba Institute for Strategic Competition, has underlined the existence of laws in China that grant the government access to information held by Chinese citizens and corporations. This ability of the Chinese government to access sensitive data raises concerns among American lawmakers and policymakers who perceive dealings with Chinese corporations as fraught with risks similar to engaging with the Chinese Communist Party or the Chinese government itself.
Concentration of Ownership
Chinese ownership of land in the U.S. is highly concentrated. Data from the United States Department of Agriculture (USDA), as obtained by NPR, reveals that over 80% of Chinese-owned land is concentrated within two entities: Smithfield Foods and a billionaire named Sun Guangxin. Sun, through his investments in Brazos Highland Properties LP and Harvest Texas LLC, acquired more than 100,000 acres in Texas for a wind farm project. However, this ambitious endeavor was ultimately thwarted by a state law designed to prevent foreign entities from accessing the Texas power grid.
Geopolitical Tensions at Play
These concerns surrounding Chinese land investments occur within the broader context of escalating tensions between the United States and China. These tensions encompass a range of issues, including Taiwan, trade disputes, and Chinese intelligence activities. Consequently, Chinese acquisitions in the United States, regardless of their scale or nature, are now perceived through a lens of heightened vigilance and national security, reflecting the complex geopolitical dynamics between the two nations.
The Ongoing Debate
In conclusion, the question of Chinese ownership of U.S. land underscores the intricate interplay between economic interests, national security, and foreign policy. As the United States navigates its relationship with China, this issue will continue to be a subject of intense scrutiny and debate.
