Our view: Above all else, clarity needed on foreign ownership

Proposals floated in the North Dakota Legislature could have big repercussions for a Grand Forks business.

It comes after the dustup related to the proposed Fufeng corn mill, which was declared a threat to national security by the Department of the Air Force. The issue with Fufeng stems from its Chinese ownership and its proximity to Grand Forks Air Force Base. Now, the idea of barring or limiting foreign ownership is a rising issue before lawmakers.

At first blush, it seems prudent. After all, if the Air Force decided Fufeng was a threat, wouldn’t it be wise to have consistency for future projects backed or owned by adversarial nations? Wouldn’t it help communities and the state avoid another Fufeng situation?

We do, however, agree with Gov. Doug Burgum’s assessment. When asked by the Herald, he said “we ought to have clarity. We need investment from our friends and allies, and not just domestic companies, if we are going to compete in a global economy.”

Yes, clarity. As our city and state strive to compete in a world economy, clarity is so important, and it’s where state or federal guidance could help.

Meanwhile, we must be cognizant of what it all could mean for friendly nations wishing to invest here.

Or for existing businesses that have roots in our communities. For example, the Cirrus plant in Grand Forks.

Acquired by China Aviation Industry General Aircraft in 2011, the plant has been in operation in Grand Forks since the 1990s. Cirrus purchased its manufacturing facility from the city in January 2021. The Grand Forks facility employs more than 400.

Last week, the Herald asked U.S. Sens. John Hoeven and Kevin Cramer their opinion on proposals to ban certain foreign governments from owning property and the idea’s potential impact on Cirrus.

Said Cramer: “I do (believe in legislation that bars China or adversarial countries from owning land). I say that because first of all, the one distinction of Grand Forks, of course, is the air base and the sensitivity of the air base. …”

And what about Cirrus?

“Well, it’s a good question, and I think unwinding something like that is very difficult. But I also think we can be pretty assured that when Cirrus was acquired, it was a different time. … I would say I don’t think Cirrus is at risk,” Cramer said. “But I also think the Air Force has already mitigated Cirrus. They were already prepared for that. What they weren’t prepared for is a new threat and that’s what we just went through.”

Said Hoeven: “Cirrus came in a long time ago. I worked with them not only when I was at Bank of North Dakota, but also during my time in the (state) Senate. That was quite some time ago and Grand Forks had a very different mission then. … You have to adapt to the times and circumstances, and that’s what we’re doing.”

Hoeven continued by saying “(Cirrus and Fufeng are) two different situations. (Cirrus) is an established company that has been there for a long, long time. The other (Fufeng) is a company that is coming in where three of its board members have ties directly to the Chinese Communist Party at high levels, and it’s just coming in now. It’s different circumstances.”

When Hoeven and Cramer spoke up against Fufeng last August, it prompted concern, including ours. Now, they are saying Cirrus is a different circumstance. It’s good to remember that as these discussions continue.