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Bochen Han

A Texas law restricting property ownership and leasing by Chinese citizens came into effect this week, thrusting affected residents into legal limbo with no path to relief before November.
The law, which restricts real estate purchases by companies, individuals and government entities linked to countries that the federal government deems a threat to the US, took effect on September 1 after a legal challenge failed to block it in time. The legislation identifies China, Iran, North Korea and Russia, but provides for the addition of other countries at a later point.
In July, the non-profit Chinese American Legal Defense Alliance (CALDA) sued on behalf of three Chinese nationals in Texas alleging that the law is discriminatory and unconstitutional.
The Houston-based US District Court for the Southern District of Texas dismissed the case in August, arguing that the plaintiffs – now down to two after one withdrew – did not have legal standing to sue.
The two plaintiffs, Qinlin Li and Peng Wang, have since filed an appeal, winning temporary relief before that decision was quickly overturned. According to their lawyer, Justin Sadowsky, the earliest possible relief would be after oral arguments before the appeal court scheduled for early November.
Texas is among more than two dozen states that have passed laws restricting foreign purchases of real estate. According to the New York-based Committee of 100, a non-profit group of prominent Chinese-Americans, 22 bills restricting foreign property ownership were under consideration in six US states as of August 20.

The developments come as US-China tensions have cascaded through local and state politics across the US in recent years, sparking alarm about Chinese investment. Much of the concern initially focused on Chinese involvement in the agricultural sector but has since broadened in scope.
Asian-American groups have consistently raised concerns about the implementation of such legislation, warning that they could lead landlords and others in real estate to avoid not only targeted Chinese nationals but also anyone who appears Chinese.
“These laws may target nationals of specific countries, but in practice, they create broad-based discrimination against Asian-Americans,” said Bethany Li, executive director of the New York-based Asian American Legal Defense and Education Fund.
The Texas plaintiffs, both Chinese citizens on student visas, say the state law violates the US Constitution’s 14th Amendment, which guarantees equal protection, and is pre-empted by the federal Fair Housing Act, which bars discrimination in housing on various bases, including national origin.
Under the Texas law, those who are “domiciled” in China would only be able to purchase a primary residence, but not secondary or investment properties.
The law, which does not apply to US green card holders, also limits leasing, allowing affected Chinese citizens to rent property only for terms of less than one year.
The plaintiffs, both renters, argue that the short-term rental market is expensive and offers scarce options. Li also notes that she may wish to purchase multiple pieces of property in the future.
Judge Charles Eskridge of the Texas district court, in an opinion released last month, argued that because of the plaintiffs’ continued residence in Texas and stated intention to stay in the US they could not be considered “domiciled” in China, and thus the restrictions did not apply to them.
But Sadowsky disputed that interpretation – which was also argued by the Texas attorney general’s office – noting that it was not binding on the Texas attorney general or courts and that his clients, along with potentially tens of thousands of others on temporary visas, remain at risk of facing penalties.
“While we appreciate the assistant attorney general and the district court’s attempts to rewrite this terrible law to make it less bad … that statement is not binding on anyone,” said Sadowsky, adding that the attorney general “could change his mind tomorrow”.




Sadowsky, who serves as a legal director at CALDA, added that he is looking to file a similar legal challenge in Austin.
Legal experts say the developments so far in the Texas case reflect a broader judicial pattern. “Courts in America love to use procedural tools to dismiss civil rights cases, as procedures provide a safe harbour for courts to not render a substantive ruling, or sometimes to rule in favour of the government without getting involved into the hard questions,” said Leo Yu, an assistant professor at the University of Massachusetts School of Law.
Proponents of legislation to restrict foreign ownership say that the measures are needed to protect Americans from influence by foreign “adversaries” such as China. They have cited the proximity of some Chinese-owned land to military sites as a potential risk, arguing it could be used for Beijing’s espionage efforts.
Texas Governor Greg Abbott, for his part, marked the law’s enactment by posting on social media on Wednesday that it “safeguards our critical infrastructure”.
In July, US Agriculture Secretary Brooke Rollins announced a plan to work with states to restrict land purchases by foreign entities nationwide and to increase scrutiny of contracts with them.
According to a 2023 Agriculture Department report, Chinese individuals or businesses own about 112,000 hectares (277,000 acres) of US land – less than 1 per cent of total foreign-held acreage – with none directly registered to the Chinese government.
At about 50,000 hectares, Texas accounts for about 45 per cent of Chinese-held land – the largest share of any US state.
Efforts to restrict Chinese land ownership have faced opposition in multiple states.
Litigation challenging a Florida law to restrict Chinese ownership is pending appeal in federal court. And in December, a federal judge in Arkansas granted a preliminary injunction blocking a similar law.


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.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Court dismissed a challenge in August; an appeal is pending

Court dismissed a challenge in August; an appeal is pending