BISMARCK, N.D. — Three years have passed since a Chinese company’s intention to develop farmland near a North Dakota Air Force base sparked local security worries and triggered a flurry of legislative actions nationwide. Nonetheless, the push for new restrictions continues to grow.
The call for firmer measures against Chinese investment has intensified among state legislators and members of Congress, despite opinions suggesting that these restrictions may be driven more by political motivations than genuine national security concerns. As expressed by U.S. Senator Kevin Cramer from North Dakota, the situation served as a warning regarding Chinese investments in America.
Since the incident surrounding the Grand Forks Air Force Base — coinciding with the highly publicized journey of a Chinese balloon across U.S. airspace — there has been a notable increase in proposals aimed at limiting foreign ownership of agricultural land. In the past few years, numerous state lawmakers have introduced similar legislation, leading to more than 20 states implementing restrictions on such foreign acquisitions.
States like Indiana, Missouri, and Texas have gone further by prohibiting public pension funds from investing in Chinese markets. Additionally, Arkansas, Florida, and Tennessee have instituted bans preventing public agencies from purchasing Chinese-manufactured drones. In Congress, initiatives have emerged to halt future sales of drones from two Chinese companies that are deemed to pose an unacceptable risk to national security and to propose a nationwide ban on the sale of farmland to Chinese enterprises.
Former President Donald Trump’s critical stance on China and the imposition of tariffs have significantly influenced state legislators pushing for more extensive limitations. This year alone, states from Arizona to South Carolina are advancing legislation aimed at curbing Chinese investments and ownership, reflecting an ongoing eagerness to establish regulations.
Cramer credits North Dakota for sparking a national scrutiny of Chinese involvement, attributing it to the Grand Forks City Council’s rejection of a proposed wet corn milling facility after local military concerns were raised. Cramer emphasizes that this action has paved the way for other governmental bodies to respond similarly.
While foreign ownership of U.S. farmland remains limited, recent statistics indicate a slow increase. As per the latest data, foreign investors held a stake in approximately 3.5% of privately owned agricultural land in the United States, with less than 1% attributed to Chinese ownership. Canadian investors lead foreign holdings, claiming 33% of that total.
Mary Gallagher, a fellow at the Brookings Institution, acknowledges legitimate worries regarding China’s surveillance and hacking activities but questions whether the newly proposed laws effectively address these threats. Gallagher argues that the legislation is often a political performance that undermines America’s reputation as a nation committed to the rule of law.
Concerns over potential overreach highlight domestic political dynamics that incite anxiety over vague threats posed by Chinese investment. Political science professor Mark Jendrysik suggests that some individuals and groups are using opposition to China to bolster their own influence and careers.
Kansas House Majority Leader Chris Croft shared his reasoning behind supporting restrictions, which focuses on safeguarding military installations from potential espionage linked to Chinese enterprises. Croft, a retired Army colonel, asserts that companies operating in China are compelled to comply with directives from government authorities.
In North Dakota, legislative efforts are particularly pronounced, with lawmakers examining multiple bills, including one that allocates up to $15 million for replacing around 300 Chinese-made drones utilized by state agencies, universities, and colleges. Representative Mike Nathe voiced strong concerns about the surveillance potential these drones pose, stating that such technology could capture sensitive information regarding both civilian and military sites.
The push to displace Chinese-made drones would position North Dakota as the first state to completely replace its existing inventory, with ongoing evaluations of the state’s exposure to foreign threats. Other proposals aim to divest state-held investments from Chinese assets and require rigorous investigations into foreign projects that raise security alarms.
While the controversy surrounding the corn milling facility was significant, Grand Forks Mayor Brandon Bochenski remains optimistic as a Belgian company is reportedly interested in constructing a potato processing plant in the area. He hopes for a positive resolution given the ongoing scrutiny around foreign investments.
“Considering the context, I believe this particular project can lead to success,” Bochenski remarked.
