China has been buying up agricultural land in the United States for years, a trend that a U.S. lawmaker said must end in order to safeguard the U.S. food supply chain.
“China, frankly, is an adversary. We want to make sure that we control our food supply. I think it’s a natural, important, national security issue,” Newhouse said.
The amendment was adopted unanimously by the House Appropriations Committee on June 30. On July 29, the House approved the agriculture appropriations legislation as part of a package of seven 2022 spending measures (H.R.4502).
The measure also would prohibit the four countries from taking part in programs administered by the secretary of agriculture.
“During the rules process, it was changed somewhat by the Democrats to include several other countries,” he said. “But the fact remains that communist China is the threat. They’re the ones that are buying up most of the assets of that list of nefarious countries that are not our friends. And that’s where the focus should be.”
Buying Companies
One of the deals involved China’s meat processor WH Group, which purchased Virginia-based Smithfield Foods for $4.7 billion in 2013. With the purchase, the Chinese company now owns the largest pork producer in the United States, as well as 146,000 acres of prime farmland.Another deal involved two Chinese entrepreneurs who bought a 22,000-acre ranch in Utah in 2011 to grow alfalfa and export it to China.
“Chinese officials have ambitious strategic plans for agricultural investments to reshape patterns of agricultural trade and increase China’s influence in global markets,” the report reads.
Beijing launched the BRI in 2013 to develop Beijing-centered land and maritime trade routes in an effort to boost the country’s geopolitical influence.
Chinese overseas investments also include buying and investing in foreign agribusinesses. According to the report, WH Group acquired California-based pork processor Clougherty Packing and a meat and poultry processing company in Poland in 2017.
Another Chinese firm, Brights Food, invested in seven foreign companies between 2010 and 2016, according to the report. These companies included a dairy firm in New Zealand, a yogurt company in Australia, a wine business in France, a cereal company in the UK, and an olive oil company in Italy.
Newhouse said he took “proactive” action with his amendment to address the challenge posed by Chinese investments before “the problem gets so big that we can’t correct it.”
“We see the trend,“ he said. ”We see the number of acres and companies that have been purchased by the communist government of China. And we should stop it now.”