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US Bans Chinese Purchases of Farmland and Launches Clawback Measures

The action stems from national security warnings about Chinese acquisitions under a Trump-era CFIUS mandate.

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Overview

  • The USDA rolled out the National Farm Security Action Plan on July 8 to bar future farmland sales to Chinese nationals and other designated foreign adversaries.
  • Federal regulators are invoking CFIUS authority to identify and reclaim existing agricultural land owned by Chinese entities.
  • China’s Foreign Ministry denounced the plan as discriminatory, claiming it violates market economy principles and international trade rules.
  • More than 112,000 hectares of US farmland are held by Chinese interests, ranking 20th among foreign owners according to USDA data.
  • Major holdings include WH Group’s 2013 purchase of Smithfield Foods, spotlighting longstanding concerns over foreign corporate land stakes.