Texas Senate OKs Chinese ownership ban

Legislation toned down after pushback from Asian American groups

Sen. Lois Kolkhorst, the author of Senate Bill 147
Sen. Lois Kolkhorst, the author of Senate Bill 147 (Texas Senate, Illustration by The Real Deal with Getty)

A proposal to restrict Texas land ownership among Chinese citizens received final approval from the Texas Senate this week.

The proposal, authored by Republican Sen. Lois Kolkhorst, would prohibit purchases of agricultural land, timberland and oil and gas rights by entities associated with any country that “poses a risk to the national security of the United States,” the Texas Tribune reported. The measure now proceeds to the Texas House of Representatives for consideration.

The proposal is less extreme than a previous version, which would’ve completely banned all land sales to dual citizens and businesses associated with China, Iran, North Korea or Russia. The revised measure is a response to pushback from Asian American groups and advocates who said buying homes or starting businesses would be impossible for dual citizens and immigrants, the outlet reported.

“This ensures that we strengthen our food security, our energy security and our national security,” Kolkhorst said. “You can come and buy your company. You can have your restaurant.”

Senate Bill 147 would also permit the Texas Attorney General’s office to investigate potential violations and refer cases to courts if a “reasonable suspicion” is tied to a buyer associated with one of the designated countries.

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The legislation is an extension of a law passed in 2021 that prevents Texas businesses and government officials from making infrastructure deals with affiliates of the four countries, Kolkhorst said. A Xinjiang-based real estate tycoon’s purchase of roughly 140,000-acre wind farm in Del Rio prompted the legislation.

Other states are taking a similar course of action. Florida lawmakers just advanced a house bill that would prohibit Chinese natives from purchasing real estate anywhere in the state.

Last year, the Communist Party in China banned key members and their families from acquiring real estate assets abroad in an effort to protect the country from sanctions, like the ones proposed by Texas and Florida. 

—Quinn Donoghue

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