Texas has become the latest state to implement a law banning land and property acquisitions by adversarial nations, including China, Russia, Iran, and North Korea, following Governor Greg Abbott’s signature of Senate Bill 17. The law, effective September 1, prohibits these countries from acquiring ‘real property’ such as agricultural land, commercial properties, and residential buildings, while exempting U.S. citizens and residents.
Amid heightened global tensions, there has been an increased appetite for protecting foreign asset acquisitions in the United States. However, these efforts have been criticized by some for being overly broad, arbitrary, and potentially discriminatory.
Proponents of measures like the one in Texas have cited efforts by countries like China to purchase land and property near major U.S. military bases. However, it is not just land either; it is assets too. China has a strong foothold in the U.S. drone market with many law enforcement agencies using Chinese-made DJI drones. The country has also faced scrutiny for building solar converters in the U.S. that can be tapped for espionage efforts, its increasing footprint in U.S. maritime ports, and penetration of other critical infrastructure.
Texas’s law follows a high-profile incident earlier this month when two Chinese nationals were arrested for attempting to smuggle a dangerous biological pathogen into the United States.