Biden Administration Rule Would Increase Authority to Block Foreign Deals

The Biden administration is seeking to broaden its powers significantly to block foreign investments by making it harder to buy land near military bases, a move that could make it harder for Chinese companies to build factories in the United States.

The Treasury Department proposed a new rule on Monday that would add more than 50 military installations across 30 states to a list of locations it has deemed sensitive to national security. If enacted, the rule would bolster a 2018 law that gave the Committee on Foreign Investment in the United States the ability to block foreign land purchases if they are within a certain proximity of a base.

The proposal comes as Democrats and Republicans in Congress have become increasingly concerned that Chinese investments in the United States threaten national security and as the Biden administration has rolled out new tariffs to curb imports of Chinese electric vehicles and solar panels.

The Treasury Department said the move was the result of a long-term review of the committee’s jurisdiction and that it was not directed at investments from any specific country.

“CFIUS plays an integral role in U.S. national security by thoroughly reviewing real estate transactions near sensitive military installations, and this proposed rule will significantly expand its jurisdiction and ability to accomplish this vital mission,” Treasury Secretary Janet L. Yellen said in a statement, using shorthand for the committee.

The rule would give the committee the power to review real estate deals within one mile of 40 additional military installations and within 100 miles of 19 new military installations. The additions to the list were the result of a review by federal agencies, including the Defense Department, to determine what facilities are most sensitive.