Air Force warns Chinese company's North Dakota mill would be 'significant' national security threat

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Chinese mill will not be built near a large air force base

Correspondent Alexis McAdams reports on the plans to build a Chinese corn mill near a military air base in North Dakota being scrapped over national security concerns on 'America Reports'

The U.S. Air Force has stepped into the debate surrounding a Chinese company's proposed North Dakota corn mill, declaring it a national security risk.

Mayor Brandon Bochenski of Grand Forks, North Dakota, announced Tuesday his intention to stop the development of a Chinese-owned corn mill due to concerns voiced by the federal government.

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Grand Forks Air Force Base (Fox News)

The Chinese-owned Fufeng Group paid $2.3 million to purchase the 300 acres of land just 12 miles from Grand Forks Air Force Base. The company plans to invest $700 million to open the mill.

"The federal government has requested the city’s help in stopping the project as [geopolitical] tensions have greatly increased since the initial announcement of the project," Bochenski announced Tuesday.

He continued, "The only remedies the city has to meet this directive is to refuse to connect industrial infrastructure and deny building permits. As mayor of the city of Grand Forks, I am requesting these remedies be undertaken and the project be stopped, pending City Council approval."

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Local officials and federal authorities have warned that Fufeng has deep ties to the ruling Chinese Communist Party.

North Dakota's senators released on Tuesday a letter they received from Air Force Assistant Secretary Andrew Hunter in which the military official warned against the Fufeng project.

In the letter, Hunter pointed to the proposed corn mill's proximity to Grand Forks Air Force Base as a major risk.

Local officials and federal authorities have warned that Fufeng has deep ties to the ruling Chinese Communist Party. (Reuters / Thomas Peter / File)

"Grand Forks Air Force Base is the center of military activities related to both air and space operations," Hunter wrote.

He continued, "While [the Committee on Foreign Investment in the United States] concluded that it did not have jurisdiction, the Department's view is unambiguous: the proposed project presents a significant threat to national security with both near- and long-term risks of significant impacts to our operations in the area."

Fufeng would be the largest foreign private sector investment in the history of Grand Forks. The city said the plant would bring in at least 200 jobs and millions in tax revenue.

Fox News traveled to Grand Forks, North Dakota in August to cover the controversy.

Residents told Fox News then that they had real concerns about Fufeng using the land to spy on the nearby air force base. Now, the city says they will not move forward with the project.

The land sits just 12-miles from the Grand Forks Air Force base, home to top secret drone technology. The Mayor of Grand Forks, who once supported the project, changed course Tuesday following the letters. Telling Fox News that the security risks outweigh the economic boost.

A balloon flies in the sky over Billings, Montana, U.S. February 1, 2023 in this picture obtained from social media. (Chase Doak/via Reuters)

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"We're kind of in this weird spot where the federal government has allowed them to own the land, but at the same time essentially ask for our help to make sure nothing gets built there. That's why we're acting to make sure that nothing gets built," said Grand Forks Mayor Brandon Bochenski.

For months some residents have tried to stop the project, even suing the city. The city council plans to vote Monday on the project. The mayor will ask them to vote no.

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"We still we still have a voice and we're still able to make a change because at the end of the day, that's what got this done, was all of the people out there making the noise and keeping it in the headlines and making it known that we aren't happy with this," said Grand Forks resident Ben Grzadzielewski.

Fox News reached out to Fufeng, the company says they had nothing to add. The Chinese Embassy in Washington has not responded to our request for a comment.

This is not just a North Dakota problem, according to the USDA, Chinese owners control at least $2 billion worth of agricultural land across the country.