Texas Law Targets Chinese Land Ownership: A Step Towards Xenophobia?

Tue Sep 30 2025 04:53:50 GMT+0300 (Eastern European Summer Time)

Texas has enacted a new law restricting property ownership for individuals from China and other countries deemed national security threats, raising concerns about discrimination and economic impacts.

The recent passage of Texas Senate Bill 17, barring Chinese, Iranian, North Korean, and Russian ownership of property, has sparked outrage among minority communities and civil rights advocates. Critics argue that the law perpetuates anti-Asian sentiments and could harm local economic development by driving away potential investments. Despite governmental assurances of national security, many view this legislation as a reflection of xenophobia rather than genuine security concerns.

Jason Yuan, a second-hand car shop owner, closes the hood of a vehicle after tightening the last nut on the battery terminal - a routine he is all too familiar with.

Texas has long felt like home for him, as a naturalised US citizen born in China. But a recently passed state law is shaking his belief in his chosen homeland.

Texas Senate Bill 17 of 2025, also known as SB 17, will take effect on 1 September, restricting people and companies from China, Iran, North Korea and Russia from purchasing and renting property.

Officials say the bill is to protect national security. But to people like Mr Yuan, it sends a discriminatory message - that individuals who resemble him are not welcome in Texas.

It is anti-Asian, anti-immigrant, and specifically against Chinese-Americans, said Texas Representative Gene Wu, a Democrat leading the fight against the bill.

The new law could harm businesses in Texas, Wu told the BBC. Companies that could bring millions of dollars of investment to the state are looking for alternatives.

Bill targets 'malignant influence'

SB 17 was proposed earlier this year and signed into law on 20 June by Governor Greg Abbott, who called it the toughest ban in America to keep away foreign adversaries.

It prohibits certain individuals and organisations of countries designated as national security threats from acquiring property in Texas - including homes, commercial space and agricultural land. It also restricts the length of time for which they can rent property to less than one year.

China is the first country named in the legislation, which accuses Beijing of using coercive, subversive, and malignant influence activities to weaken the United States in its bid to surpass the US economically, militarily and politically.

Those who violate the law could face fines of more than $250,000 (£193,000) or jail terms.

US citizens and green card holders are exempt, and valid visa-holders will still be allowed to own one primary residence. However, opponents say that regardless of the carve-outs, the bill is discriminatory in nature, exposing anyone deemed to look Chinese to unfair scrutiny.

In July, the Chinese American Legal Defense Alliance, a non-profit organisation, filed a lawsuit on behalf of three visa-holders from China, arguing that the law was unconstitutional.

'The Chinese Exclusion Act of 2025'

Chinese nationals are the largest group affected by the new law; it is estimated that at least 120,000 people born in mainland China were living in Texas as of 2023.

Qinlin Li, a recent graduate of Texas A&M University and a plaintiff of the lawsuit filed against SB 17, expressed her shock upon learning about the bill, likening the situation to historical discrimination faced by Chinese immigrants.

Jason Yuan has devoted his activism to rallying against the bill, asserting that such legislation mirrors the prejudices faced by Chinese-Americans in the past.

Banning home ownership from folks just like me based on their country of origin is discriminatory in nature, Mr Yuan said.

As the law approaches its effective date, both the local community and businesses are on edge, with many questioning the implications of such divisive legislation in the realm of national security versus civil rights.