In 2020, there were serious conversations in Washington about blocking a Chinese-owned company from building a wind farm near Laughlin Air Force Base in Del Rio. The company, linked to Chinese billionaire Sun Guangxin, owns over 100,000 acres in Val Verde County. The project raised questions about possible espionage, the disruption of flight routes and even giving the Chinese access to the Texas grid. These were all legitimate security concerns.
Ownership of land by Chinese entities that may have ties to the Chinese government is deeply problematic, and a bill preventing citizens from nations deemed hostile to the U.S. from buying property is moving swiftly in Austin and is closer to becoming law.
Senate Bill 17, by state Sen. Lois Kolkhorst, R-Brenham, would ban citizens of China, Iran, North Korea and Russia from owning property in Texas. The House version is narrower and does not apply to foreign citizens with a lawful presence in the United States, including people with work, student visas and even asylum-seekers.
We have concerns about the Senate bill. But the House version appears to address legitimate security worries while being careful to acknowledge fear of discrimination. Some Democratic lawmakers believe that there is still discriminatory potential against Asian Americans. Getting the balance right is hard, but the House bill gets close.
The Senate version more broadly restricts real estate sales against citizens and corporations from “hostile” nations, as designated by the U.S. national director of intelligence.
While the House bill is plainly the better of the two, we are worried about one element in it that would empower the governor to determine which countries are hostile. Deciding which nations are hostile is better suited to national security agencies.
However, we have confidence in the due process established under the bill. Enforcement would require the attorney general to investigate and refer the matter to a district court. If the court determines the property was purchased in violation of the law, that property can be placed into a receivership.
Ownership of U.S. land by Chinese entities is marginal, but it is concentrated. According to a 2023 NPR investigation, more than 80% was held by Chinese-controlled Smithfield Foods, a major player in the U.S. pork industry, and by the billionaire Sun Guangxin. Sun is a member of the Chinese Communist Party and a former senior leader for the Chinese military, according to Sen. John Cornyn, R-Texas. Smithfield’s parent company, WH Group, has been accused by critics of being under the authority of the Chinese government.
China is a foreign adversary, and Chinese companies are required by law to assist the government with espionage. That’s reality. Given the serious nature of the potential threat, the state has a compelling reason to act, while avoiding discriminatory outcomes.
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