US Treasury Department Expands Scrutiny of Foreign Investments Near Military Bases

The US Treasury Department is taking a proactive approach to protect national security by expanding its scrutiny of foreign investments near military bases, particularly in response to potential threats from China and other countries.

Treasury Secretary Janet Yellen announced on Monday that a proposed rule will significantly broaden the jurisdiction of the Committee on Foreign Investments in the US (CFIUS), which reviews foreign purchases of US companies and real estate. The move aims to counter fears of surveillance and espionage near sensitive military installations.

The expansion will include over 50 bases in 30 US states, bringing the total number of bases under investment security reviews to 227. This decision comes after President Joe Biden recently ordered a Chinese company to sell a property near a Wyoming Air Force base housing intercontinental ballistic missiles.

According to a senior Treasury Department official, CFIUS reviews of real estate transactions are not limited to specific countries and consider threats, vulnerabilities, and national security implications. China has been a major focus of these reviews, with a 2023 Treasury report highlighting China, Russia, Iran, and North Korea as significant threats due to economic, industrial, and cyber espionage activities.

Treasury’s assistant secretary for investment security, Paul Rosen, described the new rule as a significant milestone in safeguarding critical US military installations. He emphasized the importance of remaining vigilant in the face of evolving risks to ensure the protection of defense assets.

This latest development underscores the ongoing efforts to bolster national security and underscores the importance of monitoring foreign investments near military bases.