Chinese banned from buying property in Texas: Community calls law xenophobic; find out which 3 other countries barred

The Texas-based Chinese community is up in arms against a new law restricting property purchases and rentals by nationals from four countries—including China—which is set to take effect on September 1.

Texas Senate Bill 17 of 2025 (SB 17), which also targets citizens and companies from Iran, North Korea, and Russia, was signed into law on June 20 by governor Greg Abbott.

Abbott, a member of President Donald Trump’s Republican Party, described it as the “toughest ban in America” to keep “foreign adversaries” out.

But critics, including Texas Representative Gene Wu, a Democrat leading opposition to the bill, argue it is “anti-Asian, anti-immigrant, and specifically against Chinese-Americans.”

"The new law could harm businesses in Texas. Companies that could bring millions of dollars of investment to the state are looking for options elsewhere," Wu told the BBC.

China accused of 'malignant influence activities'

China is the first country listed in SB 17, which accuses it of conducting “malignant influence activities to weaken the United States” in its effort to surpass America economically, militarily, and politically.

The legislation exempts US citizens and green card holders, while visa-holders will be permitted to own only one primary residence.

In July, three Chinese nationals holding valid visas filed a lawsuit challenging the legislation as “unconstitutional.” The case was later dismissed after a judge sided with the Texas attorney general, who argued that the plaintiffs would not be directly affected by the law.

'Back to 150 years ago'

Qinlin Li, a Chinese national and recent graduate of Texas A&M University who was among the plaintiffs in the dismissed SB 17 lawsuit, said she was “shocked” when she first learned about the bill.

“If there are no human rights, then we are back to 150 years ago, like the railroad laborers,” Lin said. “I think it’s going to block people from studying here and working here because it’s a lot of trouble just to think about it.”

Some critics have compared SB 17 to a modern-day version of the Chinese Exclusion Act of 1882, which barred the immigration of Chinese laborers to the United States.

Another previous alien land law in Texas, which restricted non-Americans from purchasing land, was in force until 1965.

As of 2023, the state was home to least 120,000 people who were born in mainland China. This makes them the largest group affected by the new law.

What SB 17 backers say

Supporters of the legislation often cite the controversial purchase of 140,000 acres of land—some of it near Laughlin Air Force Base in Del Rio —by a Chinese businessman between 2016 and 2018.

The purchase by Chinese businessman Sun Guangxin was partly responsible for driving the legislative effort.

However, a 2024 lawsuit filed by one of Sun's business subsidiaries highlighted that US officials had cleared the project from national security concerns.

In 4 years, 26 US states passed 50 similar bills

Since 2021, 26 US states—most of them Republican-controlled—have enacted 50 laws restricting property ownership by Chinese citizens, according to Committee of 100, a Chinese-American NGO .

Most of these measures were introduced after 2023, the year a Chinese surveillance balloon drifted across North American airspace, an episode that plunged Washington–Beijing relations to a new low.