Congress exposes China's potential loophole for Trump tariffs: 'Drawing a line in the sand'

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FIRST ON FOX: Lawmakers on both sides of the aisle are coming together to crack down on Chinese-backed companies' ownership of land in the continental U.S.

It comes as the Trump administration appears on the precipice of a trade war with Beijing, as China promises to retaliate against what its foreign minister called "arbitrary" tariffs from Washington.

"It is in the interest of the United States to review purchases of American farmland by foreign entities to protect our farms and agricultural production from our foreign adversaries, especially China," Rep. Randy Feenstra, R-Iowa, the House Republican leading the bill, told Fox News Digital.

"But for far too long, our government has repeatedly failed to enforce the laws on the books, monitor foreign purchases of our farmland, or assess financial penalties on those who break our laws."

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The bill is also being led by Rep. Kristen McDonald Rivet, D-Mich., and in the upper chamber by Sen. Joni Ernst, R-Iowa.

It would direct the Committee on Foreign Investment in the United States, a body tasked with analyzing the national security implications of specific foreign investments in the U.S., to review any purchase of American farmland by a foreign entity that exceeds 320 acres or $5 million.

The bill is also aimed at establishing a public database on foreign ownership of U.S. farmland through the U.S. Department of Agriculture (USDA), and requires the Secretary of Agriculture to partner with the Secretary of Homeland Security on an annual threat assessment report on foreign ownership of U.S. farmland.

"Allowing China or other foreign competitors to buy up large swaths of American farmland puts our national security and food supply at risk," McDonald Rivet told Fox News Digital. "This bill is a key step towards protecting American interests from falling into the hands of bad actors abroad, especially China."

Ernst blamed the U.S. government's "outdated system" for allowing "China's malign influence to threaten our security by buying up our nation's land."

"I'm drawing a line in the sand to overhaul this flawed way of doing things, increase reporting and transparency, strengthen oversight of the influence of our foreign adversaries, and force the sale of foreign-owned land," Ernst said.

No foreign country directly owns U.S. land, but Chinese-backed companies own a small fraction of American farmland - a number that has risen considerably in recent years.

A 2023 plan by Chinese company Fufeng Group to buy land near a sensitive military base in Grand Forks, North Dakota, alarmed lawmakers and other federal officials, and was blocked over national security concerns.

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Chinese entities' ownership of U.S. farmland went up 30% between 2019 and 2020, according to a 2021 USDA report.

Meanwhile, China recently warned it was ready for a war over export taxes with the U.S. after President Donald Trump levied an additional 10% tariff on Chinese goods just days after returning for his second term.

"If war is what the US wants, be it a tariff war, a trade war or any other type of war, we're ready to fight till the end," China's embassy posted on X.

Chinese-backed companies currently own 384,000 acres of U.S. farmland, according to the most recent government data.