Most states in the U.S. are pushing for an act on restrictions on foreigners’ land purchases targeting Chinese individuals and companies. Over two-thirds of the 50 states are projected to join the sanctions once the legislation is finalized this year.
Politico says about 20 states are pushing for new laws or amending existing ones to restrict foreigners’ land purchases this year. Last year, 15 states enacted laws limiting or banning foreigners’ land ownership, meaning over 30 of the 50 states have already enacted or are pushing for such laws.
The acts on foreigners’ land purchases limit land ownership by nationals of countries hostile to the U.S., such as Russia, North Korea, Iran, Venezuela, and Cuba, but China is the real target. Kristi Noem, Governor of South Dakota and a potential vice presidential candidate under former President Donald Trump signed a law last month in South Dakota banning farmland purchases by Chinese and five other nationals.
This move by the U.S. states comes as Trump, the former President, threatened to impose high tariffs on China and made the economic war with China a key election issue. Politico found that some state governments jumped on this bandwagon to bash China.
The security threat is the main reason for banning Chinese land purchases on the U.S. mainland. In a House Agriculture Committee hearing last month, Governor Noem emphasized that “China is taking over our entire food supply chain, and if the U.S. cannot self-supply food and depends on other countries, it becomes a national security issue.”
Since the Chinese reconnaissance balloon incident last February, U.S. state governments have been strengthening their checks on China at key infrastructure locations such as airports, ports, and military bases. The concern is that Chinese individuals and companies could buy land near U.S. military bases for spying activities and own numerous farmlands, potentially disrupting the food supply.
However, Politico pointed out that there is no credible evidence that China’s land ownership threatens security, and such legislation may be an overreaction. According to the U.S. Department of Agriculture, in 2021, the countries owning the most U.S. farmland are Canada (0.97%) and the Netherlands (0.37%), with China owning a mere 0.03%.
The Chinese government strongly opposed this. Liu Pengyu, a spokesperson for the U.S. Embassy, criticized the law restricting Chinese land purchases, saying, “Defining the concept of national security too broadly and politicizing political, trade, and investment issues will weaken international trust in the U.S. market environment.”
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