States Consider Restrictions on Foreign Farmland Purchases Amidst Rising US-China Tensions

Nick Terran
By Nick Terran

States across the United States are considering or have already passed legislation to prevent “foreign adversaries,” particularly China, from purchasing farmland. 

While these measures have garnered support from both Republicans and some Democrats, concerns have been raised regarding their potential impact on US-Chinese relations and parallels to past discriminatory laws like the Chinese Exclusion Act.

Florida recently joined at least seven other states, including Virginia, North Dakota, Montana, and Arkansas, in enacting various versions of these bills, according to the National Agricultural Law Center (NALC). 

Additionally, similar proposals are being discussed in more than two dozen states, with a bill in Congress aiming to address the issue at the federal level.

While previous attempts have been made to restrict foreign investments, what sets these new laws apart is the specific targeting of certain countries and their governments. 

Micah Brown, a staff attorney at the NALC, highlights the unprecedented nature of the current legislative trend, with a majority of states proposing at least one bill related to this issue in 2023.

Contrary to concerns, the amount of agricultural land in the United States owned by foreign investors, including China, is relatively small. 

As of the end of 2021, China accounted for less than 1% of the over 40 million acres held by foreign investors, amounting to approximately 383,935 acres, according to a report from the US Department of Agriculture.

The primary rationale behind these laws revolves around fears of food security and the protection of sensitive installations such as military bases. 

Florida’s law, signed in May, prohibits most citizens from “foreign countries of concern” from purchasing land within 10 miles of military installations or critical infrastructure facilities. 

Governor Ron DeSantis, who is also a 2024 Republican presidential candidate, emphasized the need to keep the Chinese Communist Party out of Florida when signing the bill.

Following the passage of the Florida law, a group of Chinese citizens living and working in the state, along with a real estate company with primarily Chinese and Chinese-American clients, filed a lawsuit against state officials, claiming violations of their equal protection and due process rights under the US Constitution.

While some state laws explicitly name China as a foreign adversary, others adopt broader terms, such as “foreign adversaries” as designated by the US Commerce Department. 

The concerns driving these measures are often rooted in specific incidents involving Chinese companies attempting to establish agricultural sites near military bases, posing potential national security threats.

Experts caution against knee-jerk reactions and call for evidence-based decision-making rather than suspicion. 

Critics argue that these farmland laws, like past exclusionary legislation, can be seen as rooted in racism and xenophobia. 

They also warn that an atmosphere of anti-China sentiment could negatively impact other US interests, such as discouraging Chinese students from pursuing advanced degrees in the US.

Balancing national security concerns with the need to avoid racial discrimination and maintain a welcoming environment is crucial. 

While there are legitimate security threats that require action, it is essential to differentiate between purchases that pose actual threats and those that do not.

China’s Foreign Ministry spokesperson has raised concerns about the politicization of economic and trade issues, emphasizing the importance of adhering to market principles and international trade rules. 

Proponents of the legislation dismiss claims of perpetuating racism against Asian-Americans, asserting that the focus is on countries that have shown hostility toward the United States.

The incident involving a Chinese spy balloon earlier this year is expected to increase attention on the challenges posed by the Chinese Communist Party (CCP), including the issue of Chinese farmland purchases in the US. 

Representative Dan Newhouse, a Washington Republican, is sponsoring a bill in Congress that aims to prohibit the purchase of public or private agricultural land in the US by foreign nationals linked to the Chinese government.

As public awareness grows, there is a recognition of the need to be vigilant and prevent unwanted consequences. Striking a balance between national security concerns and avoiding discriminatory practices remains a critical objective in addressing these complex issues.

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