Texas law barring Chinese land ownership is racist, say critics

Supporters say law prompted by concerns over national security

- Bhagyashree Garekar

AUSTIN, Texas — The US-China rivalry has landed hard in America's heartland, thanks to a new law that restricts property ownership by Chinese citizens and businesses.

Effective from Sept 1, the sweeping law in Texas — America's second-largest state and its second-largest economy — prohibits the sale of homes, shops and farmland to entities from China.

Also excluded are three other nations deemed adversarial: Russia, North Korea and Iran.

Permanent residents are exempt, while students and work visa holders are allowed to buy one home as their residence, but not additional properties for investment.

Supporters say the law is prompted by concerns over national security, to keep China's growing appetite for property abroad in check.

Critics maintain it legitimizes harmful and racist claims about immigrants, and can encourage hostility and increase the incidence of anti-Asian violence.

They say it sends the message that Asian Americans are unwelcome, that they do not belong.

Texas Governor Greg Abbott, a member of US President Donald Trump's Republican Party, has bragged that the law is the "toughest ban in America".

"Hostile foreign adversaries like China, Russia, Iran and North Korea, as well as foreign terrorist organizations like Tren de Aragua, must not be allowed to own land in Texas," Mr Abbott said in a press statement a few days before the law took effect. Tren de Aragua is a Venezuelan criminal organization.

"They should not be allowed access to our critical infrastructure, and they may not be allowed to exploit our border. Stiff, criminal penalties will be inflicted on those who violate these laws," he said.

Penalties for violation include jail terms and fines of more than US$250,000 (S$322,200).