Texas is grabbing all the headlines for its recently passed Senate Bill 17 (SB 17). This legislation restricts property ownership and rental rights for non-citizens, specifically targeting foreign nationals from China. The law was signed on June 20, 2023 by Governor Greg Abbott. He even referred to it as the “toughest ban in America,” aimed at preventing foreign adversaries from obtaining undue influence in the great state of Texas. The legislation has prompted a national outcry over what the changes will mean for businesses, the economy, and civil rights.
SB 17 specifically names China, accusing the Chinese government of engaging in “coercive, subversive, and malignant influence activities” designed to weaken the United States. This law protects Texans by prohibiting Chinese nationals from acquiring property in Texas. Additionally, it bars foreign nationals from renting short-term rentals for any period of time longer than 12 months. Those who break the provisions of this law would be subject to substantial penalties, which could include fines of more than $250,000 and imprisonment.
The move is the latest occurrence in a recent tide of actions. Since 2021, at least 26 states—most of them with GOP trifectas—have enacted about 50 bills to limit foreign property ownership, with specific antipathy toward China. Supporters of SB 17 contend that it is necessary for national security. Opponents warn that it would completely destroy local businesses and communities.
As SB 17 faced opposition, Texas Representative Gene Wu became the leading opponent of the proposed legislation. He says that the law would drive away global investment. This, in turn, could damage companies that rely upon joint work with the Chinese neighborhood.
“There is no evidence that harm to national security has resulted from Chinese people owning or leasing residential properties in Texas,” – Patrick Toomey.
Wu echoes the claims of Texas’s own businesses that the law will have a devastating effect on Texas’s economy. He noted that companies capable of bringing millions in investment to the state are considering relocating their operations due to the restrictive nature of SB 17.
Businesses are concerned about SB 17’s restrictions on engagement. They worry that these constraints would result in a serious slowing of private sector economic growth and job creation. The law’s unclear phrasing around legal loopholes has further led to confusion amongst investors and community members about the law.
Despite some exceptions within the legislation, many fear these provisions may not adequately protect individuals from the repercussions of this law. The American Civil Liberties Union Foundation (ACLU) has publicly opposed SB 17 as “discriminatory,” going on to say that it harms free expression. Qinlin Li, a recent graduate from Texas A&M University, is the plaintiff in a lawsuit against the law—the first of its kind. He asserts that SB 17 discriminates against certain people based on their national origin.
“Banning home ownership from folks just like me based on their country of origin, that is discriminatory in nature,” – Jason Yuan.
Li’s worries reflect an increasing anger among those affected. They believe that this legislation chips away at their rights and creates a culture of suspicion.
“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,” – Ms. Li.
The implications of SB 17 extend well beyond property rights. Critics argue that it fosters a culture of xenophobia, discrimination, and violence against Asian Americans.
“It is anti-Asian, anti-immigrant, and specifically against Chinese-Americans,” – Gene Wu stated.
Opponents of the new law claim its enactment marks a low point in America’s history and is an abandonment of American values. Jason Yuan, a Texas-based member of the Chinese American community, felt very passionate on this topic. He contended that when the federal government discriminates against people based on their country of origin, it creates a perilous precedent.
“If there’s no human rights, then we [are] back to like 150 years ago; we were like the railroad laborers,” – Qinlin Li.
Yuan specifically stressed that the legislation could destroy the social and economic ecosystem. This ecosystem is vital for multiple businesses in the Chinese community to prosper.
“It’s an ecosystem that the business owners of the Chinese community depend on,” – Jason Yuan.
Governor Abbott and supporters of SB 17 maintain that national security concerns necessitate strict measures against foreign adversaries. Their defense is that these laws are necessary to protect American interests.
Many critics believe that targeting individuals based solely on their nationality could set a dangerous precedent for future legislation. They maintain it erodes the very democracy and inclusivity that represents the pillars of the American society.
“They’re trying to rewrite the rules of democracy,” – Jason Yuan stated.
SB 17’s impacts could be much broader than just attacking property ownership. As the conflict between the U.S. and China deepens, so too is the rhetoric. Legislative actions like SB 17 only serve to aggravate divisions and hostile environments.