Credit: CFP

AsianFin -- State lawmakers across the United States are ramping up efforts to limit property ownership by foreign entities tied to geopolitical rivals, particularly China.

Ohio has become the latest state to join a growing nation-wide effort to curb foreign ownership of U.S. land, with lawmakers proposing legislation that would restrict property purchases by individuals and entities from countries designated as adversaries, including China, Russia, North Korea, and Iran.

The proposed bill, now in early stages of debate in the Ohio General Assembly, would ban these entities from acquiring agricultural land, residential property near military bases, and land surrounding critical infrastructure.

Supporters of the bill cite national security concerns, pointing to risks such as espionage near sensitive military sites, strategic control over farmland and food supply chains, and foreign influence in local housing markets.

This move aligns with a broader trend across the United States, where 37 states have introduced or passed similar legislation aimed at limiting property ownership by foreign governments and nationals from rival nations.

The push reflects a bipartisan consensus emerging at the state level, driven by fears that real estate transactions could be used to undermine U.S. security or gain undue leverage in critical sectors. While proponents argue these measures are essential to safeguard national interests, some critics warn that such laws may stoke xenophobia or strain international economic relations.

Key State Actions

Florida

• Enacted SB 264 in 2023.
• Bans Chinese nationals and companies from buying land near critical infrastructure and military sites.
• Law temporarily blocked by a federal court due to legal challenges.

Texas

• Passed legislation banning land purchases by foreign nationals from China, Iran, North Korea, and Russia.
• Applies to residential, commercial, and agricultural land.
• Exemptions exist for U.S. green card holders and dual citizens.

South Dakota

• Prohibits foreign adversaries from buying agricultural land.
• Signed into law by Governor Kristi Noem.

North Dakota

• Prompted by a Chinese company’s proposal near a U.S. Air Force base, North Dakota enacted laws to limit Chinese purchases of U.S. farmland and other investments.

Virginia

• Senate approved a bill banning land ownership by foreign governments listed as adversaries by the Department of Commerce.

Indiana

• Proposed bill to restrict agricultural land ownership by Chinese and other foreign nationals, citing food security risks.

Hawaii, Iowa, Illinois

• Introduced bills in 2024 modeled after Florida’s SB 264 to prevent adversarial land acquisitions.

Michigan

• Nine bills introduced aim to limit foreign entities from countries like China, Russia, and Iran from owning farmland and properties near military zones, among other restrictions. 

Arizona

• House Bill 2376 seeks to restrict the sale and lease of state lands to foreign governments, state-controlled enterprises, and companies headquartered in China, Russia, or Saudi Arabia. 

Missouri

• Efforts are underway to lower the maximum amount of Missouri farmland that can be owned by foreign entities and to prohibit entities from certain countries from purchasing any land in Missouri. 

Kentucky

• House Bill 500 seeks to restrict certain foreign investors from acquiring interests in agricultural land and participating in state agricultural programs.

Louisiana

• House Bill 125 aims to restrict “foreign adversaries” from owning interests in agricultural land, with certain exemptions and reporting requirements.

Maryland

• Two bills introduced seek to restrict foreign ownership of agricultural land, specifically targeting entities associated with China.

Colorado

• House Bill 23-1152 proposes restricting nonresident aliens and entities from certain countries from acquiring controlling interests in agricultural land, mineral rights, or water rights. 

New Jersey

• Three legislative measures aim to restrict foreign persons and governments from acquiring interests in agricultural land, with divestment requirements.

Civil rights advocates have raised alarms over a wave of state-level property restrictions targeting foreign nationals from countries deemed adversarial, warning that the measures could exacerbate anti-Asian sentiment and infringe on constitutional protections.

Groups such as the ACLU and the Committee of 100 argue that these laws risk reviving discriminatory tropes and unfairly penalizing immigrants and Asian Americans under the guise of national security.

Several legal challenges have already been filed, including a high-profile federal case in Florida, where plaintiffs claim the law violates equal protection and due process clauses of the U.S. Constitution.

Critics also point to the potential economic fallout, with real estate and agricultural industry groups warning that the restrictions may deter foreign investment and complicate diplomatic and trade relations.