Chinese Corn Mill Project in North Dakota Moves Forward After Federal Security Panel Says It Has No Jurisdiction

A sign opposing a corn mill in Grand Forks, N.D., stands near 370 acres recently annexed by the city for the project. Many residents don't want the project in the city because the owner, Fufeng Group, has reputed ties to the Chinese Communist Party through its company chairman. Allan Stein/The Epoch Times

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.

In September, the city put holds on Fufeng-related infrastructure projects due to the Committee review. Those holds were lifted, and the next steps will be determined at city council meetings at the beginning of 2023, according to Feland. However, he cautioned that there might be additional federal reviews that he wasn’t aware of regarding national security.

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.

A sign spells out the concerns many residents have over a proposed corn mill in Grand Forks, N.D. Allan Stein/The Epoch Times

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.”

Sen. Marco Rubio (R-Fla.) slammed the CFIUS decision on Wednesday. “The Chinese Communist Party should not be allowed to purchase land near our military bases. It is dangerous and dumb,” he said in a released statement. “Congress mandated that CFIUS protect America’s national security and that should be its first priority, not making it easier for Chinese businesses, with ties to Beijing, to operate in the United States.”