Norway Blocks Sale of Last Private Land on Svalbard Amid Chinese Interest

South Dakota Governor Kristi Noem testified before the U.S. House Agriculture Committee about Chinese ownership of U.S. farmland. She expressed concerns about China's growing influence and investment in American agricultural land, stating that she has witnessed China systematically taking over America's vital food supply chain. Governor Noem did not endorse former President Donald Trump's proposal to levy a 60% tariff on imports from China. According to federal records, there are no Chinese-owned lands in South Dakota. Chinese entities and individuals own about 349,000 acres of U.S. agricultural land, which is less than 1% of all foreign-held agricultural land in the U.S. The states with the largest Chinese holdings are Texas, North Carolina, Missouri, Utah, and Virginia. While there is no federal law restricting foreign investors from acquiring agricultural land, dozens of states have laws in place that restrict or prohibit foreign private investment in agricultural land [3604ac77] [8c1e637d].

Chinese billionaire Chen Tianqiao, the founder, chairman, and CEO of Shanda Group, is the second-largest foreign landowner in the US, with approximately 200,000 acres of land in Oregon. He acquired the acreage in 2015 for $85 million [33a756f4]. Chen's ownership of US land, particularly agricultural land, has raised concerns among GOP governors who see it as a potential national security threat. Chen is also a member of the Chinese Communist Party (CCP) and has extensive ties to the Chinese government. He owns several urban properties in the US and has held executive positions with the All-China Federation of Industry and Commerce (ACFIC), a subordinate agency of the United Front Work Department (UFWD), a CCP agency involved in engagement, influence activities, and intelligence operations [e31ce0bc]. Chinese ownership of US land has come under increased scrutiny, and some states have taken action to ban Chinese ownership of US farmland. Chen and Shanda Group did not respond to requests for comment [e31ce0bc].

Senator Jon Tester, a Democrat from Montana, has renewed his demands for the White House to clamp down on sales of US farmland to China. This comes after a report revealed that Chinese billionaire Chen Tianqiao is among America's biggest landowners, ranking as the country's 82nd-largest landowner and second-biggest foreign owner. Tester issued a statement calling for Congress to block 'foreign adversaries' from buying US farmland and agribusinesses [49131f52].

A recent report from the Government Accountability Office (GAO) reveals that over 40 million acres of U.S. farmland are owned by foreign investors, some of whom may be linked to America's strategic rivals such as China and Iran. The report shows a 40% increase in foreign land ownership in the US since 2016. These foreign-owned properties include valuable farmland and properties near U.S. military installations, raising concerns about America's food supply and vulnerability to foreign intelligence operations. The U.S. Department of Agriculture (USDA) has a legal obligation to collect data on foreign ownership of American farmland but has significant issues with data collection and record review. The USDA lacks a complete picture of how much U.S. agricultural land is under foreign ownership. Proposed legislation at both the state and federal levels aims to restrict or more effectively monitor foreign ownership of agricultural land in the United States. U.S. Sen. Jon Tester (D-Montana) has proposed legislation to strengthen the USDA's recording and reporting requirements and to stop strategic rivals from owning agricultural land in the United States. The long-term implications of foreign buyers owning agricultural land in the United States are unknown, but legislative action is necessary to address potential issues [56b94006] [49131f52].

In an opinion piece by Rep. Frank Lucas, he addresses the issue of foreign farmland acquisition and what Congress is doing to address it. Rep. Lucas highlights the rise of Chinese-owned agricultural land in the US, which reached at least 349,442 acres in 2022. He emphasizes the need for increased scrutiny of foreign investments in US farmland, particularly those linked to strategic rivals like China. Rep. Lucas mentions that the Agriculture Appropriations bill signed into law includes an important change to enhance the ability to review transactions in the agriculture industry. The bill adds the Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS) and requires the Committee to be notified of any transaction that the USDA deems a potential threat to national security. Rep. Lucas believes that giving the Secretary of Agriculture a statutory seat at the table of the Committee is long overdue, as a national security framework that excludes agriculture is incomplete. He emphasizes the importance of ensuring access to affordable food and essential nutrients, and the interconnectedness of agricultural policy and national defense. The proposed legislation aims to strengthen the USDA's recording and reporting requirements and prevent strategic rivals from owning agricultural land in the United States [8c1e637d].

China's proximity to military bases within the US, including a nuclear missile base in Wyoming, raises national security concerns. The US government blocked a Chinese-backed cryptocurrency mining firm from owning land near Francis E. Warren Air Force Base in Wyoming, citing it as a 'national security risk'. Chinese entities have been buying strategically placed farmland near 19 US military bases, raising fears of espionage and sabotage. Chinese nationals have been caught sneaking into military bases and other sensitive US sites over 100 times in recent years. Texas lawmakers previously blocked a Chinese billionaire from setting up a wind farm near Laughlin Air Force Base over security concerns [c6e1d3ee].

The actions taken by Congress, including the addition of the Secretary of Agriculture to the CFIUS and the proposed legislation, reflect growing concerns about foreign ownership of American farmland and the potential national security implications. The rise of Chinese-owned agricultural land and the lack of comprehensive data on foreign ownership highlight the need for increased scrutiny and regulation. By addressing these issues, Congress aims to enhance food security and protect America's agricultural industry from potential threats [8c1e637d] [56b94006].

The Norwegian government has blocked the sale of the last privately owned piece of land on the Arctic archipelago of Svalbard to prevent its potential acquisition by foreign actors such as China. The remote Sore Fagerfjord property, covering 60 sq km, was on sale for €300 million. Svalbard, located between mainland Norway and the North Pole, is governed under a legal framework that allows foreign entities to gain footholds in the region. However, Norway, keen to protect its sovereignty, would not look kindly on the property falling into foreign hands. The government stated that a potential sale would require state approval under national security law. The Norwegian state owns 99.5% of Svalbard and has declared most of the land, including the Sore Fagerfjord property, as protected areas where construction and motorized transport are prohibited. [b53ffa91]