US Cracks Down: New York Firm Fined, Washington Boosts Security with Strategic Foreign Property Purchases Near Military Bases

The United States punished GlobalFoundrie for shipping chips to China. (Source: Reuters)

Global Foundries Punished for Shipping Chips to China

The Ministry of Defense said in a statement that Global Foundries had handed over 17,100 shipments worth $740,000 to companies on the Ministry of Industry and Security’s “blacklist.”

The U.S. Department of Commerce added that exports to companies on this list require a license, but GlobalFoundries has not applied for a license.

New Rules to Review Purchases of Foreign Real Estate Near Military Bases

The U.S. government reports that it has completed new rules that expand its authority to review purchases of foreign real estate near bases. This is because it poses a threat to military and national security.

The United States is increasingly concerned about the national security risks posed by purchases of Chinese-linked real estate near sensitive military sites.

The regulations, first proposed in July of this year, would add approximately 30 military installations across 60 states to a review list (including a total of 227 military installations) and expand the authority of the Committee on Foreign Investment in the United States (CFIUS).

Controlling U.S. Investment Activities in China

In late October, the U.S. government issued final rules aimed at controlling U.S. investment activities in artificial intelligence (AI), semiconductors and other technology sectors in China.

This rule, proposed by the U.S. Treasury in June, is based on an executive order signed by President Joe Biden in June 2023.

The new regulations address three main areas: semiconductors and microelectronics, quantum information technology, and certain AI systems.

The new rules will take effect on January 2, 2025 and will be overseen by the Treasury Department’s newly created Office of Global Exchange.

These technologies are fundamental to the development of next-generation military, surveillance, intelligence and cybersecurity applications, the Department of Defense said.

Paul Rosen, the U.S. Treasury assistant secretary for investment security, added that these regulations include technologies such as advanced cryptocurrency computer systems or next-generation fighter jets.