LITTLE ROCK, Ark. — Two companies who "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 Sen. Blake Johnson was the lead sponsor of Act 636, the new law banning some foreign countries from owning land in Arkansas, citing national security concerns.
"It's a concern to me not just as a farmer, but as a citizen," Johnson said. "We have to trade internationally, but we don't have to be taken advantage of because we want to be internationally traded."
As part of an ongoing investigation related to the law, Dept. of Agriculture Secretary Wes Ward discovered that two companies, Risever Machinery and Jones Digital, have what he called "significant ties" to China.
In two letters to Griffin, Ward described how the two companies are possibly violating the new law.
Risever Machinery LLC, which has a facility in Craighead County, has been operating in the state since Oct. 2019. The facility was the company's first location in the United States, producing steel parts for construction equipment.
Former Governor Asa Hutchinson spoke at the grand opening of the Risever plant, saying that foreign investment was "vital to our state's economic health." 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 that the company may have ownership in "other digital asset or crypto-mining operations" across the state under different names.
Residents of Arkansas County have brought up concerns regarding the crypto-mine operated by Jones Digital. Many have voiced concerns about the sound and environmental implications it may 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 Gov. Sarah Huckabee Sanders.
Under the new law, a "foreign-party controlled business" is banned from owning land in the state.
In November, Sanders' administration used the new law to force Syngenta Seeds to divest ownership in the Arkansas land it owns. Syngenta has around 160 acres of land in Craighead County.