Is It Protection or Prejudice? Texas Limits Property Ownership for Chinese
Jason Yuan, a local used car business owner who emigrated from China and became a US citizen, has always seen Texas as his home. However, a new state law has him questioning his faith in his adopted home. The law restricts individuals and companies from China, Iran, North Korea, and Russia from buying or renting property in Texas.
The law, SB 17, is said to be a measure to safeguard national security. Yet, for individuals like Mr. Yuan, it feels like a sign of unwelcome and discrimination. The legislation appears primarily anti-Asian and anti-immigrant, with a specific bias against Chinese-Americans.
Implications for Businesses
Democratic Representative Gene Wu, leading the charge against the bill, fears that the new law could harm Texas's economy. Potential investors who could bring significant revenue to the state are now exploring alternatives.
Understanding the Bill
Proposed earlier this year and signed into law in June, SB 17 aims to prevent "foreign adversaries" from acquiring property in Texas. This includes residential, commercial, and agricultural properties. It also limits the length of time they can lease property to less than a year.
The law primarily targets China, citing its alleged "coercive, subversive, and malignant influence activities" as a threat to the United States. Violations of the law could result in hefty fines or jail time. While US citizens and green card holders are exempt, and valid visa-holders can still own a primary residence, opponents argue that the bill is inherently discriminatory, potentially leading to unjust scrutiny of anyone who appears to be Chinese.
Legal Battles
In response, the Chinese American Legal Defense Alliance (Calda), a non-profit organization, filed a lawsuit on behalf of three Chinese visa-holders, arguing the law's unconstitutionality. The lawsuit was later dismissed, but the lack of clear interpretation of the law's clauses remains a source of anxiety for many visa holders. Calda has since filed an appeal.
A Historical Perspective
Chinese nationals make up the largest group impacted by the new law. At least 120,000 mainland China-born individuals lived in Texas as of 2023. The law is reminiscent of the Chinese Exclusion Act of 1882, a prejudiced law barring Chinese laborers from immigrating to the US.
Effects on the Chinese Community
Mr. Yuan, who has been actively protesting against the bill, fears what this law could mean for his kids' future. Moreover, as a business owner, he is anxious about the financial impact on his business as a significant portion of his clientele are Chinese immigrants.
Similarly, transnational Chinese companies stand to be affected by the bill. Various Chinese companies are reportedly seeking alternatives to Texas, a move that could have significant economic impacts.
Historical Struggle for Land Ownership
The struggle for land ownership has been a long-standing issue for Chinese-Americans. A previous law in Texas, which restricted non-US citizens from buying land, was in force until 1965. It was considered "unreasonable and discriminatory."
Security Concerns and Critiques
While the new legislation's supporters argue it's necessary to keep "hostile regimes" away from key infrastructures, critics dispute this reasoning. They argue that equating Chinese people with the Chinese government is flawed.
Experts also question the necessity of the law from a regulatory standpoint. A better approach would be for the federal government to handle such matters to avoid overlapping jurisdictions.
National Concerns
There's growing concern that if left unchallenged, the new law in Texas could inspire similar laws in other states. Already, Ohio is considering a similar ban. Activists are rallying against it, fearing the potential erosion of democratic principles.
As Mr. Yuan puts it, "They're trying to rewrite the rules of democracy, but there is still a chance we could change the course. Otherwise, the US will become much more like China."
