The Biden administration has taken a significant step to address national security concerns by ordering a Chinese-backed cryptocurrency mining company to divest from its land near a sensitive U.S. military installation.
The company, MineOne Partners Ltd., acquired real estate within one mile of the Francis E. Warren Air Force Base in Cheyenne, Wyoming, in June 2022.
TLDR
- The Biden administration has ordered a Chinese-backed cryptocurrency mining company, MineOne, to sell its land near a U.S. nuclear missile base in Wyoming, citing national security concerns.
- MineOne acquired the real estate within one mile of the Francis E. Warren Air Force Base in June 2022, but did not report the purchase to the Committee on Foreign Investment in the United States (CFIUS) until after an investigation was launched following a public tip.
- The presidential order states that MineOne’s site contained “specialized and foreign-sourced equipment potentially capable of facilitating surveillance and espionage activities.”
- MineOne has been given 120 days to divest from the land and 90 days to remove all structures and equipment from the site.
- The move comes amid heightened tensions between the U.S. and China, with the U.S. expected to impose new tariffs on Chinese imports, including electric vehicles, semiconductors, and medical supplies, on Tuesday.
The Francis E. Warren Air Force Base is a strategic missile base and a key element of the United States’ nuclear triad.
The proximity of MineOne’s operations to this sensitive site raised red flags, prompting an investigation by the Committee on Foreign Investment in the United States (CFIUS), a powerful government agency tasked with reviewing corporate deals for potential national security risks.
According to the presidential order issued on Monday, MineOne’s site contained “specialized and foreign-sourced equipment potentially capable of facilitating surveillance and espionage activities.”
The order cited “credible evidence” that the company, which is majority-owned by Chinese nationals, “might take action that threatens to impair the national security of the United States.”
President Biden’s order, made in coordination with CFIUS, directs MineOne to divest from the land within 120 days and remove all structures and equipment from the site within 90 days.
The order was vague about the specific national security concerns but highlighted the importance of protecting sensitive U.S. military installations from potential threats.
This move comes as tensions between the United States and China continue to escalate.
The Biden administration has taken a tough stance on China, with the President and his presumptive Republican challenger, former President Donald Trump, both vowing to be tough on the world’s second-largest economy ahead of the upcoming presidential elections.
The divestment order follows a recent law signed by Biden to force the divestiture of the social media platform TikTok from its Chinese parent company, ByteDance, citing national security concerns.
Additionally, the U.S. is expected to issue significant new tariffs on Chinese imports, including electric vehicles, semiconductors, solar equipment, and medical supplies, as early as Tuesday.
While MineOne did not immediately respond to requests for comment, the order underscores the U.S. government’s growing scrutiny of Chinese investments and operations in the country, particularly those in close proximity to sensitive military facilities or involving specialized technologies.
Treasury Secretary Janet Yellen, who chairs CFIUS, emphasized the committee’s role in ensuring that “foreign investment does not undermine our national security, particularly as it relates to transactions that present risk to sensitive U.S. military installations as well as those involving specialized equipment and technologies.”
The order against MineOne highlights the U.S. government’s efforts to protect its national security interests while navigating the complex geopolitical landscape and the potential threats posed by foreign investments and operations, especially those with ties to adversarial nations like China.
