Texas Law Restricting Chinese Property Ownership Sparks Fierce Debate
A new Texas law set to take effect on 1 September 2025 is igniting a heated debate over whether the state is protecting national security or fuelling discrimination against Asian communities.
The legislation, Senate Bill 17 (SB 17), prohibits individuals and businesses from China, Russia, Iran, and North Korea from buying property in Texas, and limits rentals to less than a year. Supporters, including Governor Greg Abbott, hail it as the “toughest ban in America” to prevent “hostile foreign adversaries” from acquiring land near sensitive infrastructure.
But critics argue the measure unfairly targets immigrants and residents of Chinese descent, reviving painful echoes of exclusionary policies from America’s past.
“This is anti-Asian, anti-immigrant, and specifically against Chinese-Americans,” said State Representative Gene Wu, a Democrat who has opposed the law. He warned it could deter billions of dollars in investment and drive companies away from Texas.
Legal and community pushback
The Chinese American Legal Defense Alliance (Calda) has mounted a legal challenge, representing visa-holders who say the law violates constitutional rights. Although a judge dismissed the case in July, Calda has filed an appeal, citing uncertainty for thousands of residents.
For many, the issue is deeply personal. Jason Yuan, a Houston small-business owner and naturalised U.S. citizen from China, compared the law to the Chinese Exclusion Act of 1882, which barred Chinese labourers from immigrating to the U.S. “Banning home ownership based on country of origin is discriminatory in nature,” he said.
Qinlin Li, a recent Texas A&M graduate, described the stress of not knowing whether she could remain in her home. “It makes me wonder if people will still want to study or work here when it feels like we’re not welcome,” she said.
National security vs. discrimination
Backers of SB 17 point to concerns over foreign ownership of land near military bases. The law was partly inspired by controversy surrounding Chinese businessman Sun Guangxin, who purchased more than 140,000 acres near Laughlin Air Force Base for a wind farm. U.S. officials later blocked the project amid security concerns.
Security experts note growing risks from Chinese espionage but acknowledge there is no evidence linking Chinese property ownership in Texas to actual threats. Patrick Toomey of the ACLU warned the state was conflating individuals with the Chinese government: “There is no evidence that harm to national security has resulted from Chinese people owning or leasing homes in Texas.”
A growing national trend
Texas is not alone. According to the advocacy group Committee of 100, 26 U.S. states have introduced or passed similar restrictions since 2021, most targeting China. The wave of legislation has accelerated since the Chinese spy balloon incident in 2023, which worsened U.S.-China relations.
Civil rights advocates fear SB 17 could set a dangerous precedent. Nancy Lin, a Dallas real estate agent, said several Chinese investors are already pulling back. “If this continues, Texas will lose out on billions in clean energy and technology investments,” she said.
For community leaders like Yuan, the stakes are high. “If we don’t fight this, it won’t stop in Texas,” he said. “Other states will follow—and the America we believe in will change.”
