Peace Garden News

WASHINGTON – U.S. Senators Kevin Cramer (R-ND) and John Kennedy (R-LA) introduced the Exposing China’s Belt and Road Investment in America Act to put Chinese greenfield initiatives within the purview of the Committee on Foreign Investment in the United States (CFIUS). China routinely makes “greenfield” investments while buying land, building factories, and taking advantage of state and local tax breaks in America to expand China’s influence.

“Every land acquisition, investment, corporate merger, and building of agricultural facilities, influenced by foreign adversaries, is another step away from American ownership and sovereignty over our own food systems and supply chain. Placing greenfield investments under CFIUS review will enhance the review process of purchases from Chinese-operated enterprises. Let’s fend off bad, foreign investment once and for all,” said Senator Cramer.

“The Chinese Communist Party is both aggressive and manipulative. Beijing uses greenfield investments to gain leverage over America’s economy and job market. We can’t be blind to the ways China is gaming our system to take American assets, real estate and innovation away from U.S. businesses. The Exposing China’s Belt and Road Investment in America Act is key to countering the threat China’s regime poses to our economy and national security,” said Senator Kennedy.

Specifically, the Exposing China’s Belt and Road Investment in America Act would require a CFIUS review for any investment made by a foreign person involving the acquisition of real estate in the U.S. and the establishment of a U.S. business on such real estate which results in China’s direct or indirect control of that U.S. business.

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Background:

Greenfield projects involve a foreign parent company establishing a subsidiary in another country, such as the United States. This is the most common way Chinese companies enter the American market and are Beijing’s preferred method for expanding influence under its international infrastructure plan, known as the Belt and Road Initiative. China’s state-operated enterprises use the greenfield model to extract intellectual property, influence, and other assets from U.S. businesses while Chinese domestic markets remain insulated from foreign influence.

Original source can be found here.