In response to mounting national security concerns, the White House has issued a directive requiring a Chinese-linked company and its partners to sell property near a U.S. Air Force base in Wyoming within 120 days.
The property, purchased for cryptocurrency mining in June 2022 by MineOne Partners Limited, is situated within one mile of the Francis E. Warren Air Force Base, housing part of America’s nuclear arsenal.
The decision underscores increasing unease over Chinese-led acquisitions of American real estate near critical military installations. The White House cited the potential for espionage activities facilitated by the proximity of foreign-owned property to a strategic missile base, raising significant national security risks.
This move follows a broader investigation into Chinese telecommunications giant Huawei in 2022. Concerns arose regarding the potential for U.S. cell towers equipped with Huawei‘s technology to capture sensitive information from military bases and missile silos, transmitting it to China.
The MineOne Partners deal underwent scrutiny by the Committee on Foreign Investment in the United States (CFIUS), a powerful panel overseeing foreign investments for national security risks.
Expanded authorities granted to CFIUS in 2018 enable the review of non-controlling investments in U.S. real estate transactions posing national security concerns.
Treasury Secretary Janet Yellen emphasized CFIUS’s pivotal role as a gatekeeper to safeguard national security, particularly in transactions involving risks to sensitive military installations and specialized equipment and technologies.
As tensions escalate between the U.S. and China over national security issues, regulatory measures like these underscore efforts to mitigate potential threats posed by foreign investments near critical defense infrastructure.
