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The battle against Chinese influence begins in Little Rock. Arkansas has emerged as the first state in the U.S. to force a company linked to China to divest its farmland, signaling a significant stance in the ongoing geopolitical struggle.
“We are taking a strong stand against China infiltrating our state,” asserts Arkansas Governor Sarah Huckabee Sanders. She emphasizes the state’s commitment to persistently push back against China’s encroachment.
Legislative Actions Against Chinese State-Owned Enterprises
In a move to bolster Arkansas’s defenses against the Chinese Communist Party (CCP), Sanders is set to introduce new legislation. This legislation aims to restrict state-owned Chinese businesses from operating in Arkansas and to terminate programs associated with China.
The proposed measures include prohibiting CCP-affiliated companies from purchasing or leasing property in the state. Additionally, the legislation seeks to block ownership near critical infrastructure, dismantle Sister City partnerships, and cut funding for universities that have programs sponsored by Chinese entities.
“We’ve observed numerous instances where China attempts to infiltrate vital sectors. They are trying to acquire land near our military bases and essential utilities,” notes Sanders. “We are expanding existing laws to ensure we hold them accountable and drive them out.”
Past Actions and Consequences
Earlier this year, Arkansas mandated Syngenta Seeds, a company owned by a Chinese conglomerate, to divest farmland used for seed production. The state penalized Syngenta with a fine of $280,000 for failing to disclose its foreign ownership by the required deadline.
The company’s assertion that it operates solely to support its commercial interests in North America was met with skepticism. Arkansas Attorney General Tim Miller emphasized Syngenta’s foreign ownership, stating, “This serves as a warning to all other Chinese state-owned businesses operating in Arkansas.”
The Importance of Agricultural Security
Agriculture remains the cornerstone of Arkansas’s economy, making the protection of its agricultural resources paramount. Sanders stresses how securing this sector aids in maintaining the components that strengthen it and are crucial for the state’s overall prosperity.
National Trends in Restricting Chinese-Owned Enterprises
As Arkansas takes significant steps, a total of 22 states have enacted some form of restrictions on businesses owned by Chinese entities. Congressman John Moolenaar from Michigan, the Chairman of the House Select Committee on the CCP, asserts the need for other states to follow Arkansas’s lead.
“Governor Sanders is assuming a leadership role in protecting farmland and green spaces. Ensuring that the CCP does not establish a foothold in Arkansas is critical,” Moolenaar states. His call for more states to take similar actions echoes the urgency of the situation.
Addressing National Security Concerns
Concerns over China’s infiltration into the U.S. economy have loomed large for years. Experts highlight that businesses associated with China may pose national security threats under the guise of normal commerce. Michael Pillsbury, a former top government official on China affairs, observes that the systemic risks from the CCP have not diminished.
Pillsbury believes the actions taken by Sanders are important for laying the groundwork needed for long-term security against CCP influence. However, he urges that these measures must be part of a broader federal involvement by agencies like Homeland Security and the FBI to create a robust defense.
Comprehending the Complexity of Ownership
Understanding the ownership of companies tied to China can be particularly challenging due to the CCP’s intricate system. As Moolenaar points out, there is essentially no true concept of a private company in China. All Chinese firms are intertwined with the government in some capacity. Moreover, the phenomenon termed ‘military fusion’—the overlapping of civilian and military technology—poses additional concerns.
Compounding the challenge are Chinese funding and educational programs that aim to further the CCP’s interests. Citing a recent spying incident in Michigan, Moolenaar underscores the importance of vigilance. Five Chinese national students were apprehended while allegedly spying on a military facility, raising alarms about CCP’s tactics to leverage students.
Strengthening National Vigilance
Governor Sanders’s initiative tackles precisely this vulnerable point by promoting protective measures against such degrees of infiltration. “China is consistently searching for avenues to develop relationships to exploit and use against us,” she warns. “We are taking steps to defend against that.”
Countering Claims from Beijing
In response to these measures, China’s embassy in Washington criticized the U.S. for politicizing and weaponizing economic exchanges, alleging that American officials obstruct normal trade for political gain. Critics argue that such claims are a projection of the CCP’s own tactics under the pretext of business and friendship.
“We need proactive measures,” insists Moolenaar. “Rather than looking for a smoking gun, we should be alert for a loaded gun that represents a real threat to national interests.”
