Arkansas leads on protecting the state against foreign adversaries
Every day we learn more about the unprecedented scope of Chinese government attacks on American privacy. U.S. officials recently confirmed that Chinese Communist Party-linked hackers still have access to critical telecommunications infrastructure six months after intrusions were first detected. The depth of access to U.S. telecommunications systems should serve as a stark reminder that although the work to harden the nation’s defenses may not be simple, it is critical.
The Protecting America Initiative is leading the fight at the state level to increase national security and protect American data from foreign adversaries. As we have demonstrated, much of that important work begins at the state level. States that lead the way in safeguarding privacy should be greatly commended.
One admirable example is the state of Arkansas, where policymakers have made great headway in enacting laws that help protect Arkansans from the CCP’s ill intent. Since taking office, Governor Sarah Huckabee Sanders has prioritized getting tough on the Chinese government. The tangible policy results have mounted ever since. Here are some examples.
Farmland Protections
In April of 2023, Arkansas became one of the very first states in the country to pass protections for agricultural land from foreign ownership with the enactment of SB 383, later known as Act 636. The law precludes a “prohibited foreign party” from owning farmland or forestland, establishes an Office of Agricultural Intelligence under the Department of Agriculture to investigate possible violations, and tasks the state’s attorney general with enforcing its restrictions. One of the law’s big wins came later that year when state officials successfully forced the divestment of 160 acres of agricultural land owned by Syngenta Seeds and imposed a civil penalty of $280,000 for the failure to report foreign ownership in a timely manner. Syngenta Seeds’ parent company – ChemChina – appears on a Department of Defense list of Chinese military companies. Act 636 makes Arkansas one of 19 states so far with specific bills to protect agricultural land from foreign ownership.
Crypto Mining Restrictions
Earlier this year, state lawmakers passed SB 79 (Act 174) to amend the Arkansas Data Centers Act of 2023 to require that digital asset mining businesses operate with a valid permit from the Oil and Gas Commission. The law further barred any “prohibited foreign party” as defined by the statute from holding any “ownership interest of greater than zero percent” in a crypto mining business. Before signing the bill, Governor Sanders indicated that it would be another tool to continue “to shut down Chinese Communist party influence” in Arkansas and “crack down on bad actors.”
Prohibiting State Contracts with China
Concurrent with the passage of farmland protections in 2023, Arkansas also passed HB 1789 (Act 758) to prohibit state agencies from entering into contracts either with a “scrutinized company” – defined as “a company owned in whole or with a majority ownership by the government of the People’s Republic of China” – or with any entity that subcontracts a scrutinized company. Any company entering into a contract with a state agency must also certify that they do not fall within that definition, subject to a civil penalty the greater of $250,000 or twice the amount of the contract. In its legislative findings, the General Assembly explained that dealing with Chinese state-owned companies threatens Arkansas security by “by making accessible to the Communist Party of China and People’s Republic of China government information about the structure, operations, resources, and infrastructure of the government of Arkansas.”
Foreign Drone Ban
Following federal action on restricting the government use of foreign drones, Arkansas in 2023 passed HB 1653 (Act 525) to prohibit any state government entity – including law enforcement – from purchasing drones from a “covered foreign entity,” which includes companies domiciled in or under the influence or control of countries such as China and Russia. Under the law, no public entity in Arkansas shall operate a foreign drone on or after May 1, 2027, thereby allowing a four-year phaseout of foreign drones.
Executive Order Banning TikTok from Government Devices
Upon taking office in January 2023, Arkansas Governor Sarah Huckabee Sanders immediately signed seven executive orders, one of which banned the Beijing-based social media app TikTok from government devices and state networks over concerns about security. The executive order cited the Office of the Director of National Intelligence in its assessment that China “presents the broadest, most active, and persistent cyber espionage threat to U.S. Government and private sector networks” while noting that apps like TikTok are “particularly vulnerable to infiltration, exploitation, and harm” because of the large amount of data that can be harvested from devices on which it is installed.
States Across the Country Should Follow Arkansas’ Example
Arkansas is undoubtedly an early leader in assessing and responding to the growing threat from adversarial nations like China. As vectors of attack continue to evolve and grow, however, policymakers in every state must continue to be vigilant. The Protecting America Initiative will continue to work hand in hand with state lawmakers and thought leaders to enact proactive solutions to one of the most pressing issues the country currently faces.