Who owns Syngenta? Sarah Huckabee Sanders' order against Chinese company in Arkansas explained

Agrichemicals giant, Syngenta Seeds, was ordered to sell 160 acres of Arkansas farmland under its ownership back to the state on October 17, 2023. Syngenta Seeds was asked to sell the farmland because of its Chinese ownership. The company is owned by China National Chemical Corporation (ChemChina), a Chinese state-owned enterprise.

Prohibited Foreign Entity Ownership of Arkansas land is denied under Act 636, which was passed in 2023. The company will also be fined a civil penalty of $280,000 for its failure in the timely reporting of its foreign ownership. The land in question was owned by Northrop King Seed Co. for around 30 years and Sygenta is Northrop King Seed Co.'s parent company.

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Syngenta ordered to leave Arkansas land alone

In a news conference held on Monday, October 17, 2023, Arkansas Gov. Sarah Huckabee Sanders stated that seeds were technology. She further said that the Chinese-owned state corporations filtered the technology back to their homeland. Sanders claimed that the corporations steal American research and told the country's enemies to "target American farms."

"This is a clear threat to our national security and to our farmers," the governor added.

Arkansas Attorney General Tim Griffin issued a statement on Tuesday, October 17, 2023, ordering Syngenta to divest the 160 acres of Arkansas land under its ownership. As mentioned earlier, the land was owned by Northrop King Seed Co., which is a subsidiary of Syngenta Seeds, LLC.

Syngenta Seeds, which has its headquarters in Basel, Switzerland was acquired by China National Chemical Corporation (ChemChina), in 2017. ChemChina is a Chinese state-owned chemical company. The company was added to the list of "Chinese military companies operating directly or indirectly in the United States" by the United States Department of Defence in 2022.

Tim Griffin said in the statement that this was the first ever enforcement action that he has taken under Act 636, passed by the General Assembly in 2023. Act 636 denied the acquisition or holding of both public and private land in Arkansas by "prohibited foreign-party-controlled business". Both direct ownership and ownership by affiliation come under this law.

Such foreign parties are entities that have a connection to countries that are subjected to the federal International Traffic in Arms Regulations (ITAR). In this case, the company in question is connected to The People's Republic of China, which is subjected to ITAR.

"I am ordering ChemChina, as a ‘prohibited foreign-party-controlled business’ to divest this land within two years or I will commence an enforcement action in Craighead County circuit court," Tim Griffin went on to say.

A civil penalty of $280,000 was also imposed on the company for the breach of Act 1046 of 2021. According to an Agricultural Foreign Investment Disclosure Act (AFIDA) report to the United States Department of Agriculture, China held an indirect significant interest in the company owning the land in the state.

However, according to Act 1046, a copy of the AFIDA must be submitted to the Arkansas Department of Agriculture in the required time period. The company did not do so, thereby resulting in the fine.

Syngenta released a statement condemning the actions of the Arkansas officials.

"Our people in Arkansas are Americans led by Americans who care deeply about serving Arkansas farmers. This action hurts Arkansas farmers more than anyone else," the company said in the statement.

The company further stated that China had never directed the actions of the company and called the decision to divest land, "shortsighted". It explained that the effects of the decision could unintentionally negatively affect the United States agricultural market.