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US-China relations
ChinaDiplomacy

Chinese agribusiness giant Fufeng gets US federal clearance for controversial North Dakota land sale

  • Inter-agency body says it will not block company’s US$700 million corn milling plant in city of Grand Forks
  • Residents who object to the project say it is too close to air force base and could be a ‘smokescreen’ for espionage

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A Chinese company’s corn milling project has sparked controversy among residents of Grand Forks, North Dakota. Photo: Craig Spicer
Khushboo Razdanin New York
A US inter-agency body charged with assessing national security risks involving foreign investments announced on Monday it will not block a Chinese agribusiness subsidiary’s proposed US$700 million corn milling project in North Dakota.
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After completing a 45-day review, the Committee on Foreign Investment in the United States (CFIUS) concluded that Fufeng USA’s purchase of 150 hectares (370 acres) of land in the city of Grand Forks from a private citizen is “not covered” under its jurisdiction.
In a statement released on Tuesday, the subsidiary of Chinese agribusiness giant Fufeng said CFIUS would not be taking any further action on the transaction, adding that the company was “pleased with the outcome of the CFIUS review” and was “looking forward to building its wet corn milling and bio-fermentation plant in Grand Forks”.

02:44

'Red scare' or security threat? North Dakota city torn over proposed Chinese milling plant

'Red scare' or security threat? North Dakota city torn over proposed Chinese milling plant

Welcoming the decision, Todd Feland, Grand Forks’ city administrator, told the Post that the result “gives the city of Grand Forks some positive feedback that the due diligence was done appropriately”.

The US departments of the treasury, defence and agriculture were the lead federal agencies involved in the inquiry, he said.

First approved in November 2021, the project has drawn suspicion in the city of 58,000 residents since early this year.
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Concerned residents pointed out that the plant would be located merely 19km (12 miles) from Grand Forks Air Force Base, home to top US intelligence, surveillance and reconnaissance capabilities.

Some in the community have called the plans to build an agribusiness facility a smokescreen for espionage activities. Others fear it could “bring Communist China” to their neighbourhood.

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