U.S. checks on Chinese farmland purchases are flawed, watchdog warns

GAO says Pentagon and CFIUS frustrated with Agriculture Department

A corn field and storage bins are seen in North Dakota. A Chinese company's purchase of cropland in the state, near a key U.S. military facility, caused an uproar on Congress and was ultimately canceled. © Reuters

KEN MORIYASU, Nikkei Asia diplomatic correspondent

January 20, 2024 06:05 JST

WASHINGTON -- The U.S. government's process to track when and how much American agricultural land is being purchased by foreign entities is inadequate, a congressional watchdog said in a report.

The Government Accountability Office (GAO) said that while foreign investment in agricultural land is rapidly growing, the U.S. Department of Agriculture (USDA) only follows the transactions through a paper trail and informs other agencies, such as the Defense Department and the Committee on Foreign Investment in the United States (CFIUS), once a year.