ChemChina's takeover 'poses no security issues'

CFIUS is tasked with reviewing foreign acquisitions of US companies and consists of representatives from 16 agencies, including treasury, homeland security and defense.

Grassley's comments are part of a growing trend among some US lawmakers to have CFIUS play an expanded role in reviewing potential transactions, particularly those coming from China.

The organization has never rejected a deal on the grounds of food security. Nevertheless, it will be subjected to an obligatory 75-day review because ChemChina is State-owned.

Although based in Switzerland, Syngenta is the biggest seller of pesticides in North America, from where it gets nearly a quarter of its revenue, and a major seller of seeds.

Its US headquarters is in North Carolina, and it has other facilities in several states, including California, Delaware, Iowa, Louisiana, Nebraska and Minnesota.

Michael Wessel, a member of the US-China Economic and Security Review Commission, which was created to monitor China for Congress, has insisted there are food safety risks for the US to consider in the ChemChina-Syngenta deal, and agrees with Grassley in wanting the Agriculture Department to be involved in CFIUS's review

"The potential risks to US food safety from the Syngenta transaction send a strong signal that the USDA (US Department of Agriculture) needs to be integrated into CFIUS' review of this transaction.

"Syngenta's leading role in the seed-technology sector requires a thorough review. Food security is a national security issue," said Wessel in an e-mail.

However, David Miller, director of research and commodity services for the Iowa Farm Bureau Federation, does not believe a change in ownership should raise food-safety issues.

Emma Gonzalez contributed to this story.