Applies to Non-Permanent Residents from China, Russia, Iran, and North Korea
To Take Effect in September Following Governor Abbott’s Signature
Groups Like 'Asian Texans for Justice' Plan to File Lawsuit

The governor of Texas has signed a bill banning Chinese nationals from purchasing real estate within the state, signaling the spread of anti-China sentiment in the United States to the property market. Although the law is set to take effect in September, it is expected to face strong opposition and legal challenges from Asian American advocacy groups, potentially leading to a prolonged court battle.

Texas Enacts Law Banning Real Estate Purchases by Chinese Nationals

On the 23rd (local time), the South China Morning Post (SCMP) reported that Texas Governor Greg Abbott, a Republican, signed a bill on the 21st that prohibits foreign nationals—including Chinese citizens—from purchasing real estate in the state, except when the property is intended for residential use and the buyer holds a valid visa.

Earlier in February, during the legislative process, Governor Abbott had posted on social media: “This bill prohibits hostile foreign entities from purchasing land in Texas." Governor Abbott emphasized, “It must be passed during this session.”

The legislation restricts individuals, corporations, and government institutions from four countries, China, Russia, Iran, and North Korea, from purchasing real estate in the state of Texas. While permanent residents (green card holders) and U.S. citizens are exempt, nationals of the four countries are barred from buying property for investment purposes. The law is scheduled to take effect on September 1.

Supporters of the law argue it is crucial to shield Texas residents from the influence of "hostile nations" like China. However, critics, particularly among Chinese Americans, warn that the law could unfairly exclude individuals from housing opportunities simply based on their appearance or assumptions about their nationality. Alice Yi, co-founder of Asian Texans for Justice, stated that several Asian American organizations are planning to support lawsuits challenging the law.

A comparable legal dispute is already unfolding in Florida. The U.S. Court of Appeals accepted a lawsuit filed by four Chinese immigrants contesting a law that restricts property ownership for citizens of China, Cuba, Iran, North Korea, Russia, Syria, and Venezuela. In a 2023 letter to a Florida district court, the U.S. Department of Justice stated that the law violates the federal Fair Housing Act and the Equal Protection Clause of the 14th Amendment to the U.S. Constitution.

Over Two-Thirds of U.S. States Move to Restrict Foreign Ownership of Real Estate

Efforts to ban Chinese nationals from purchasing real estate in the U.S. are spreading beyond Texas and gaining momentum nationwide. According to Politico, more than two-thirds of U.S. states have either enacted or are considering laws restricting or prohibiting land ownership by foreign nationals—many of which specifically name China.

In January, Republican senators in Arkansas introduced the “Not One More Inch or Acre Act,” a bill that prohibits Chinese nationals, entities, or foreign individuals acting on behalf of the Chinese Communist Party from purchasing public or private land in the United States.

Florida already passed a law in 2023 banning citizens of China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria from owning agricultural land or property near military bases. Similar laws have been approved by state legislatures in South Dakota, North Dakota, Indiana, Nebraska, Virginia, Utah, Iowa, West Virginia, and Montana. Other states, including Ohio, Michigan, and Georgia, are reportedly reviewing legislation that would limit foreign ownership of land.

Efforts to curb property ownership by Chinese nationals are also underway at the federal level. On June 6, Rep. John Moolenaar (R-MI), chair of the House Select Committee on the Chinese Communist Party, wrote in a Wall Street Journal op-ed: “We must stop China from buying up American land for espionage and other threats.”

Last month, Brooke Rollins, the U.S. Secretary of Agriculture, told the House Appropriations Committee that the administration is developing a federal plan to restrict Chinese access to U.S. land.

These actions align with growing concern in Washington. Vice President J.D. Vance, who has long called for reclaiming U.S. farmland and real estate from Chinese entities, has stated: “We must not allow even a single blade of grass to fall into China’s hands.”

Real Estate Purchases Viewed as National and Food Security Threat

The push to limit Chinese property ownership is not merely a real estate issue but is increasingly seen as a matter of national and food security. Politico notes that public anxiety is mounting over Chinese land acquisitions, especially those near sensitive military installations.

This movement is occurring amid rising tensions between the U.S. and China over trade, technology, and national security. According to U.S. Department of Agriculture data, by 2023, Chinese investors owned land in the United States equivalent to twice the area of New York City.

There is particular concern over Chinese purchases near airports, ports, and military bases. In 2021, controversy erupted in Texas after a businessman and former PLA general purchased 130,000 acres near a U.S. Air Force base. In 2023, a Chinese company bought land near another Air Force base in North Dakota, sparking allegations of potential military espionage.

Concerns are not limited to the U.S. In Switzerland last year, a Chinese family named Wang purchased a hotel located near a military base set to host sensitive data on F-35 stealth fighter jets. The incident raised suspicions that the purchase was part of an attempt to obtain classified fighter technology, prompting international alarms over China's global real estate strategy and its implications for military intelligence.

These developments underscore growing concerns that Chinese ownership of strategic real estate may pose significant threats to national security, fueling an intensifying legal, political, and diplomatic backlash across the United States and beyond.