A bill to restrict property ownership in Texas by Chinese citizens became law, more than two years after it was first introduced, setting up what could be a prolonged legal and political battle as critics plan to file a suit challenging its constitutionality.
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Governor Greg Abbott, a Republican, announced on Saturday that he had signed the bill, which also targets nationals from Iran, North Korea and Russia, into law.
Abbott expressed support for the bill in February, writing on social media that the legislation “would prohibit hostile foreign entities from purchasing land in Texas, and that “we must get this to my desk this session”.
The bill restricts individuals, companies, and government entities from China and the other named countries from purchasing property in the state, exempting US green card holders and citizens. It takes effect on September 1.
The initiative allows those who hold valid US visas to purchase property, but only if the property is used as a primary residence. That means nationals from the four countries would not be able to purchase investment properties.
According to a 2023 US Department of Agriculture report, Chinese individuals or businesses own about 277,336 acres of US land (1,122 square kilometres) – less than 1 per cent of total foreign-held acreage – with none directly registered to the Chinese government.