Why is it difficult for the US to ban Chinese people from buying real estate?

In February, US media reported that states including Texas, Florida and Arkansas were considering a bill that would block Chinese nationals from buying real estate, citing national security concerns. The bill also targeted citizens of several other countries including Iran, Russia and North Korea, but was later withdrawn due to opposition.

The bill, if passed, would prevent Russians, Iranians and North Koreans from owning property in the states, but the main target appears to be Chinese.

The bill was introduced in November 2022 by Lois Kolkhorst, a Republican state senator from Texas.

A "for sale" sign outside a house in Atlanta, Georgia, on February 17. Photo: Bloomberg

Such laws are not uncommon around the world , analysts say. Several governments have proposed measures that directly or indirectly ban foreigners from buying homes or real estate in an effort to curb soaring housing prices. Canada, Switzerland, Denmark, Singapore, Cambodia and many other countries have imposed outright bans or some form of restrictions on foreign home purchases.

However, countries that enact these laws are intended to apply to all foreign citizens, not to target any particular group.

Law professor Michael Byers at the University of British Columbia - USA said that the bill of the states of Texas, Florida and Arkansas only targeting citizens of China, Russia, Iran and North Korea is unconstitutional.

"What is unusual about the Texas, Florida and Arkansas proposals is that they target citizens of a specific country, specifically the Chinese," Professor Michael Byers stressed. "If passed into law, it would be considered discriminatory and a violation of the US Constitution. It would also violate World Trade Organization regulations."

Any investment ban, especially a politically motivated one, would not benefit either country but also global trade, said Professor Sing Tien Foo, from the real estate department at the National University of Singapore.

From there, experts concluded that it would be difficult for the US to issue a ban on Chinese citizens buying real estate in the US because it is unconstitutional and violates the principles of market economy and international trade law.

According to the National Association of Realtors (NAR), Chinese people are topping the list of foreign citizens buying homes in the US for the 10th consecutive year.

NAR recorded that investors from mainland China, Hong Kong and Taiwan spent $6.1 billion on U.S. real estate in the 12 months ending in March 2022. This figure increased 27% compared to a year earlier, higher than the spending of citizens of any other country.

Miami, Florida has been the top destination for foreign real estate investors for 14 years running. Photo: Shutterstock

US-China tensions have escalated rapidly in recent years and heated up recently after Washington shot down a Beijing balloon. The US accused it of being a spy balloon and criticized China, while Beijing said it was a stray civilian device and accused the US of overreacting.

Source: https://nld.com.vn/thoi-su-quoc-te/vi-sao-my-kho-cam-nguoi-trung-quoc-mua-nha-dat-20230319121340122.htm