LITTLE ROCK, Ark. – Two companies that “may have significant ties to China” have been referred to Attorney General Tim Griffin’s office for possible violations of an Arkansas law that bans other countries from owning land in the state.
This year, State Senator Blake Johnson was the primary sponsor of Act 636, the new law that bans some foreign countries from owning land in Arkansas, citing national security concerns.
“It’s a concern for me not only as a farmer, but as a citizen,” Johnson said. “We need to trade internationally, but we don’t need to be taken advantage of because we want to trade internationally.”
As part of an ongoing investigation into the Act, Agriculture Minister Wes Ward discovered that two companies, Risever Machinery and Jones Digital, had what he called “significant links” to China.
In two letters to Griffin, Ward described how the two companies may be in breach of the new law.
Risever Machinery LLC, which has a facility in Craighead County, has been operating in the state since October 2019. The facility was the company’s first location in the United States, and produces steel parts for construction equipment.
Former Governor Asa Hutchinson spoke at the opening of the Risever plant, saying that foreign investment is “vital to the economic health of our state”. During his tenure, Hutchinson was instrumental in bringing Chinese companies to the state to build facilities.
Jones Digital LLC operates on agricultural land near DeWitt, and Ward believes the company may be involved in “other digital asset or crypto mining operations” across the state under various names.
Residents of Arkansas County have raised concerns about the crypto-mine operated by Jones Digital. Many have raised concerns about the noise and environmental impact it could cause.
“China is a hostile foreign adversary, and under my administration we will follow the law and not allow companies controlled by the Chinese Communist Party to buy up and exploit Arkansas land,” said Governor Sarah Huckabee Sanders.
The new law prohibits a “foreign party-controlled enterprise” from owning land in the state.
In November, Sanders’ administration used the new law to force Syngenta Seeds to divest ownership of land it owns in Arkansas. Syngenta owns about 160 acres of land in Craighead County.