The Committee on Foreign Investment in the United States (CFIUS) has determined the land sale for the Chinese corn mill project in North Dakota as “not a ‘covered transaction’” under the Committee’s jurisdiction, according to a decision letter on Dec. 12.
“Fufeng USA is pleased with the outcome of the CFIUS review and is looking forward to building its wet corn milling and biofermentation plant in Grand Forks, North Dakota,” said the subsidiary of the Chinese company Fufeng Group.
In the fall of 2021, Fufeng bought 370 acres of land in North Dakota for $2.6 million. The city of Grand Forks approved the development agreement for the corn mill project in July. The two senators representing the state have called out national security concerns associated with the venture, as the land is within 15 miles of the Grand Forks Air Force base, which houses sensitive drone, satellite, and surveillance technology.
“I think Fufeng USA has been cleared of the CFIUS matter, and we continue on with the remaining due diligence matters of the Development Agreement to include various environmental and engineering criteria,” City Administrator Todd Feland told The Epoch Times in an emailed statement on Wednesday.
Previously, he told the local newspaper Grand Forks Herald that the lead federal agencies in the CFIUS review were the departments of treasury, defense, and agriculture.
Sen. Kevin Cramer (R-N.D.) told the Herald on Tuesday that he would be seeking intel “directly from relevant agencies” without naming them.
“My concerns remain the same with the Chinese Communist Party investing in agriculture in North Dakota,” he said in a statement. “I look forward to the classified briefing scheduled for next week to learn more.”
Sen. John Hoeven (R-N.D.) released a statement on Wednesday, saying, “As we cautioned, we understand that CFIUS has concluded the project is not within its jurisdiction but has not offered an opinion or released any details about potential security issues.”
“We will get additional briefings from CFIUS and provide any additional information if we can, but we continue to have security concerns with this project, given its proximity to the Grand Forks Air Force Base,” the statement continued.
Ben Grzadzielewski, a Grand Forks resident who has been leading the political and legal campaigns against the Fufeng project, said that the CFIUS decision was that it didn’t have jurisdiction over the real estate transaction, not that the project didn’t pose any national security threat.
“The Air Force, the Department of Defense, or both may have identified national security concerns related to the transaction. However, they have to follow CFIUS regulations and not discuss them openly with the public. The Air Force may be considering other avenues to resolve those concerns,” Grzadzielewski continued.
He urged other residents to write to senators to “find the proper government agency to address those security risks.”
