Key Takeaways
- Biden orders Chinese-backed MineOne to divest from land near a missile base.
- The divestment aligns with new U.S. tariffs on Chinese imports.
- CFIUS reviews prompted by unreported transaction and national security threats.
President Joe Biden took decisive action on Monday by issuing an order to prevent MineOne Partners Ltd., a firm with partial Chinese backing, from owning land dangerously close to Wyoming’s Francis E. Warren Air Force Base.
Labeling the situation:
A national security risk
The order stipulates the removal of certain equipment and the divestment of property currently utilized for Bitcoin mining operations near the base.
This significant move aligns with upcoming U.S. tariffs set to be imposed on a range of Chinese imports including electric vehicles and semiconductors.
Tensions with China
The decision underscores heightened tensions with China as election season heats up, with both Biden and former President Donald Trump emphasizing their tough stances on China.
The divestment directive stems from a 2018 law empowering the Committee on Foreign Investment in the United States (CFIUS) to scrutinize real estate transactions near critical sites for national security implications.
2022 purchase
Despite MineOne’s purchase in 2022, the firm failed to report the transaction to CFIUS, which only learned of the deal through a public tip.
Janet Yellen, Treasury Secretary and CFIUS chair, commented on the matter, emphasizing the importance of monitoring foreign investments that might compromise U.S. national security.
This includes concerns about specialized equipment on the site potentially enabling surveillance and espionage.
Requirement to sell
CFIUS has mandated that MineOne sell the property within 120 days and dismantle all relevant structures and equipment within 90 days, reflecting the administration’s rigorous approach to safeguarding sensitive military installations.
