"You Want To Invest Here, Partner Here," Says Grant Cardone: A Call for Chinese Investors to Collaborate with U.S. Firms in Real Estate

In a bold statement that has ignited discussions across the financial and political landscapes, real estate mogul Grant Cardone recently took to Twitter to express his views on foreign investment in U.S. real estate, particularly from China. "You want to invest here, partner here," he declared, suggesting that Chinese investors should not be allowed to purchase U.S. real estate unless they collaborate with American firms. This statement has not only sparked debate but has also highlighted growing concerns regarding foreign ownership of American land.

The Context of Cardone’s Statement

Cardone’s tweet comes at a time when foreign investments in U.S. real estate, especially from China, are under increased scrutiny. The concern is not entirely unfounded; foreign ownership of U.S. agricultural land has been a topic of discussion for years. According to a 2021 report from the U.S. Department of Agriculture (USDA), foreign entities own approximately 40 million acres of U.S. agricultural land, which accounts for about 3% of privately held farmland. While Canada leads in foreign ownership with 12.8 million acres, China ranks 18th, owning around 384,000 acres.

The National Security Debate

The debate surrounding foreign ownership is often intertwined with national security concerns. Critics argue that investments from countries like China pose risks, particularly when these holdings are located near sensitive areas, such as military bases. A notable incident occurred in 2021 when a Chinese company sought to build a corn mill near an Air Force base in North Dakota, only to be halted by lawmakers due to fears of espionage. Such incidents have heightened public anxiety about the implications of foreign investments in U.S. land.

The Landscape of Chinese Investments

While Cardone’s focus on China is significant, it is essential to understand the broader context of foreign investments in U.S. real estate. The USDA report indicates that while China’s holdings are relatively small compared to other countries, the concentration of these investments near critical infrastructure raises alarms. For instance, over a third of the Chinese-owned U.S. farmland is controlled by Smithfield Foods, the largest pork producer in the U.S., which was acquired by China’s WH Group in 2013. Additionally, Sun Guangxin, a Chinese investor, purchased over 100,000 acres in Texas for a wind farm project that was ultimately halted due to security concerns.

Legislative Responses and Calls for Transparency

In response to growing concerns about foreign ownership, lawmakers from both parties have been advocating for stricter regulations. Bills like the FARM Act have been introduced to enhance transparency in foreign land ownership and to restrict purchases near vital infrastructure. The Biden administration is also considering changes to regulations governing land purchases in sensitive areas. However, the current system for tracking foreign ownership is flawed, relying on self-reported data that is often outdated and incomplete.

The Future of Foreign Investment in U.S. Real Estate

As the debate continues, the question remains: how will foreign investments in U.S. real estate evolve? Cardone’s call for partnerships between Chinese investors and U.S. firms could be seen as a potential solution to address national security concerns while still allowing for foreign investment. By requiring collaboration with American entities, the risks associated with foreign ownership could be mitigated, fostering a more secure investment environment.

Conclusion

Grant Cardone’s statement has opened the door to a critical conversation about foreign investment in U.S. real estate, particularly from China. As concerns about national security and economic sovereignty grow, the need for transparency and regulation becomes increasingly apparent. Whether through partnerships or stricter legislative measures, the future of foreign investment in American land will likely depend on finding a balance between welcoming international capital and safeguarding national interests. As this dialogue unfolds, stakeholders from all sides will need to engage thoughtfully to navigate the complexities of this pressing issue.