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.
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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.