Economic boon or security threat? American city torn over Chinese milling project

Name: “Red scare” or security threat? North Dakota city torn over proposed Chinese milling plant
Uploaded: 2022-07-18T17:03:43.000Z
Duration: 2 min 44 s
Description: “Red scare” or security threat? North Dakota city torn over proposed Chinese milling plant

A subsidiary of China’s Fufeng Group plans a US$700 million corn-milling facility in Grand Forks, North Dakota

While the city council approved the development deal, many residents have raised security suspicions over its ‘China connection’

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Town Residents of Grand Forks, North Dakota have protested that the building of a planned corn milling plant by China’s Fufeng USD would constitute a national security threat because of its proximity to Grand Forks Air Force Base. Image: Shutterstock

Khushboo Razdan

Published: 1:03am, 19 Jul 2022Updated: 4:36am, 19 Jul 2022

It is just a few hundred acres on the outskirts of a small, sleepy town in the middle of the vast American Great Plains. But a property deal in Grand Forks, North Dakota – hundreds of miles from any major US city – finds itself on the geopolitical stage, the focus of growing concern locally, in Washington, even Beijing.

On one side of a brewing battle are “patriotic” residents fearful that a proposed Chinese milling plant, which the city council approved only to hit local resistance, will foster espionage and a nest of spies in their community.

On the other are city officials who dismiss any concerns over foreign intrigue and point to the economic promise of what they call the town’s “biggest investment deal ever”. This comes as federal agencies and lawmakers express growing interest and seek further scrutiny of the project.

The target of suspicion is Fufeng USA, a subsidiary of China-based Fufeng Group, which plans a US$700 million agribusiness facility on the edge of the city of 58,000 people, expected to create some 700 direct and indirect jobs and bring in up to US$1 million in added annual property tax revenue.

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“Red scare” or security threat? North Dakota city torn over proposed Chinese milling plant

But protesting residents note that the plant would be a mere 19km (12 miles) from a US air force base critical to national defence. Grand Forks Air Force Base houses top intelligence, surveillance and reconnaissance capabilities. The base is also home to a global communications system.

The issue reached a crescendo on March 7 – four months after Fufeng USA bought 370 acres at a reported price of US$26,000 an acre (US$11,000 per hectare) and a month after the council approved the deal – when residents gathered at a tense city council meeting marked by yelling, applause and heated exchanges.