Rep. John Moolenaar
U.S. Rep. John Moolenaar (R-MI) on Oct. 11 sponsored legislation that would require a review by the Committee on Foreign Investment in the United States (CFIUS) of greenfield investments made by China.
“The Chinese Communist Party is the No. 1 economic adversary of the United States,” Rep. Moolenaar said. “We can never allow federal officials to duck their responsibility to stop activities that are harmful to our country. These officials must examine and stop land purchases by CCP-affiliated individuals and companies.”
CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States and certain real estate transactions by foreign persons in order to determine their effect on U.S. national security, according to the U.S. Treasury Department.
Investopedia says that a greenfield investment is a type of foreign director investment in which a parent company creates a subsidiary in a different country, building its operations from the ground up. In addition to the construction of new production facilities, these projects can also include the building of new distribution hubs, offices, and living quarters.
The Exposing China’s Belt and Road Investment in America Act of 2023, H.R. 5926, which Rep. Moolenaar introduced alongside three GOP original cosponsors, including U.S. Rep. Nancy Mace (R-SC), would require the CFIUS to review any real estate investment made by a foreign individual that would result in the Chinese Communist Party’s (CCP) direct or indirect control over a business, according to a bill summary provided by Rep. Moolenaar’s staff.
“I am proud to introduce this legislation so CFIUS will take action and stop the CCP’s efforts to build factories, purchase land, and acquire influence over America,” said Rep. Moolenaar, who serves on the U.S. House Select Committee on the Strategic Competition with the Chinese Communist Party.
The congressman in February called on U.S. Treasury Secretary Janet Yellen and CFIUS to investigate the proposed plan for the CCP-affiliated company Gotion to build in Mecosta County, Mich. The Treasury Department responded in April, claiming the project is out of CFIUS’s jurisdiction.
“Treasury’s response fails to provide information on CCP investment in Michigan and reflects how the federal review process is broken,” Rep. Moolenaar said at the time. “During the 46 days it took to craft this insufficient reply, CFIUS could have conducted a review of the CCP-affiliated Gotion project in Mecosta County. The lack of transparency in this process is concerning and people should be able to know that a company that is trying to come into their community is being reviewed for its ties.”
H.R. 5926 is the companion bill to the same-named S. 2069, introduced on June 21 by U.S. Sens. John Kennedy (R-LA) and Kevin Cramer (R-ND).