National security or xenophobia? Texas restricts Chinese owning and renting property

August 28, 2025

Texas Senate Bill 17 (SB 17), set to take effect September 1, 2025, prohibits people and companies from China, Iran, North Korea, and Russia from purchasing property in Texas, with limited exceptions for US citizens, green card holders, and visa holders seeking a primary residence. Signed by Governor Greg Abbott, who called it the "toughest ban in America" against foreign "adversaries," the law has sparked significant opposition from those who view it as discriminatory, particularly against Chinese Americans. The legislation impacts both individuals and businesses, with potential fines exceeding $250,000 or jail time for violations, while advocacy groups like the Chinese American Legal Defense Alliance have mounted legal challenges against the law.

Who is affected

Chinese nationals living in Texas (the largest affected group, with approximately 120,000 people born in mainland China living in Texas as of 2023)
Individuals and companies from Iran, North Korea, and Russia
Chinese businesses operating in Texas, including both small businesses and transnational companies that have invested $2.7 billion and created 4,682 jobs in Texas between 2011-2021
Visa-holders from the designated countries who face uncertainty about property rights
Chinese-American community members like Jason Yuan who feel targeted despite being U.S. citizens

What action is being taken

The Chinese American Legal Defense Alliance (Calda) has filed a lawsuit challenging the constitutionality of SB 17 and is currently pursuing an appeal after the initial case was dismissed
Community activists like Jason Yuan are organizing rallies and protests against the legislation
Chinese companies are pausing investment plans in Texas and seeking alternatives in other states
Commercial estate agents are advising Chinese clients on the implications of the new law
Texas Representative Gene Wu is leading political opposition against the bill

Why it matters

The law creates uncertainty for visa holders from affected countries regarding their housing options
It potentially impacts Texas's economy by discouraging Chinese business investment, which previously brought billions of dollars and thousands of jobs to the state
Many view the legislation as discriminatory and reminiscent of historical anti-Asian policies like the Chinese Exclusion Act of 1882
The law represents a growing national trend of state-level restrictions targeting Chinese property ownership
It raises tensions between national security concerns and civil liberties protections for immigrant communities
The legislation creates precedent for other states considering similar restrictions, with Ohio already exploring stricter measures

What's next

No explicit next steps stated in the article

Read full article from source: BBC