Originally published October 18, 2023 11:30 am PDT
Arkansas has mandated a Chinese-owned company, a subsidiary of Syngenta Seeds, to sell its 160-acre property located in Craighead County, in line with the state’s Act 636.
This legislation prohibits certain overseas entities, including those associated with foreign governments on the International Traffic in Arms Regulations list, from owning agricultural land in the state.
Notably, China falls under these specified countries.
Arkansas Attorney General Tim Griffin declared, “I am ordering ChemChina, as a ‘prohibited foreign-party-controlled business,’ to divest this land within two years, or I will commence an enforcement action in Craighead County circuit court.”
He expressed optimism about the firm complying, saying, “I have full confidence that they’re going to divest themselves of the property, and they’re going to pay the fine.”
In a bid to prevent prolonged legal battles, Griffin anticipates the company will proactively sell the property, sidestepping potential court orders that could culminate in a forced sale via foreclosure.
Syngenta Seeds is under the ownership of the China National Chemical Company (ChemChina), a company in turn owned by the Chinese Communist Party.
This link has led to heightened scrutiny, especially given that ChemChina features on the U.S. Department of Defense’s roster of prohibited military businesses.
Arkansas Governor Sarah Huckabee Sanders emphasized the gravity of the situation, stating, “That is a clear threat to our national security and to our great farmers, especially since the Chinese government enacted a law in 2017 requiring Chinese citizens abroad to collaborate with their country’s security officials on intelligence work with no questions asked.”
She added, “This isn’t about where you’re from. We welcome Chinese-Americans, Russian-Americans, and anyone else who’s given up foreign oppression for American freedom. This is about where your loyalties lie. We simply cannot trust those who pledge allegiance to a hostile foreign power.”
Further complicating matters, Syngenta subsidiary Northrup King Seed Co. has been fined for not disclosing its Chinese affiliations to the Arkansas Department of Agriculture, a requirement as per state law.
The penalty amounts to $280,000, a quarter of the land’s estimated worth according to Syngenta’s records.
In a public statement, Syngenta expressed its discontent with Arkansas’s decision, pointing out its longstanding ties with the state since 1988.
The company countered, “Our people in Arkansas are Americans led by Americans who care deeply about serving Arkansas farmers. This action hurts Arkansas farmers more than anyone else.”
They also clarified that their decision to acquire land was never influenced by directives from China and mentioned their timely submission of updated documents to both federal and state authorities.
