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An intensifying concern over national security and foreign influence has propelled state legislators, predominantly in Republican strongholds, to propose and enact a series of laws aimed at curbing land purchases by Chinese nationals and corporations. This legislative wave marks a significant effort to bolster state defenses against what is perceived as a burgeoning threat from China, a Politico report said.
Driving the news
Driving the news
- According to a 2021 department of agriculture report, China’s ownership of
US agricultural land totals approximately 384,000 acres. This includes 195,000 acres, valued at nearly $2 billion at the time of purchase, held by 85 Chinese investors—encompassing individuals, companies, or government entities. - Additionally, 62 US corporations with Chinese shareholders own another 189,000 acres, purchased for $235 millions, a Forbes report said. Between 2015 and 2019, Chinese agricultural land ownership in the US saw a modest increase of about 550 acres.
- However, a significant surge occurred from 2019 to 2020, with a 30% jump in ownership from around 247,000 acres to approximately 352,000 acres. US companies with Chinese shareholders accounted for 102,000 acres of this growth, more than doubling their acreage in that year.
- In 2021, China added another 32,000 acres of US agricultural land—not as substantial as the 2020 increase, but still 98% higher than the total growth from 2015 to 2019, the Forbes report added.
Why it matters
- Concerns have been raised over the possibility that the Chinese government, via these Chinese corporations, could gain control over American assets or access to information within the US.
- According to the Politico report, warnings from US intelligence officials regarding China’s influence operations within the US have been growing more frequent. Concurrently, a Marist Poll, commissioned last month by the advocacy group State Armor — a vocal proponent for laws restricting Chinese land acquisitions — surveyed 1,455 Americans. The findings showed that 73 percent endorse the prohibition of China and other “adversaries or national security threats” from contributing to critical infrastructure elements, such as cell phone towers and electrical grids, the Politico report said.
- The rush to legislate against foreign ownership of American land, particularly by Chinese entities, is reflective of broader geopolitical tensions and domestic political dynamics.
- With over two-thirds of US states either having passed or contemplating such laws, the movement underscores a proactive stance by local governments amidst apprehensions about federal efficacy in mitigating foreign encroachments on US soil.
The big picture
- The legislative efforts are occurring against a backdrop of deteriorating
US-China relations , with disputes ranging from trade imbalances to human rights concerns. - These state-level actions signify a grassroots approach to countering Chinese influence, premised on safeguarding critical infrastructure and agricultural assets essential to national security and food sovereignty.
- The legislative push serves dual purposes: protecting national interests and mobilizing political support. With the looming 2024 election cycle, anti-China sentiment becomes a potent tool for galvanizing voter bases, especially among conservatives. This confluence of security concerns and political strategy reflects a broader trend of international relations influencing domestic policy and vice versa.
What they’re saying
- Vocal proponents like Gov Kristi Noem of South Dakota have framed the issue in stark terms, highlighting the strategic implications of allowing Chinese interests to acquire American farmland.
- Noem’s narrative, echoing through the halls of state legislatures, casts China’s economic activities within the US as a direct challenge to national security and independence.
- “I don’t know that we know for sure all the foreign land that potentially is owned by Chinese individuals or folks controlled by the Chinese government,” Senator Jon Tester, D-Mont, told NPR.
- Land purchases “are not being adequately controlled by the federal government, so states are acting on their own,” Indiana Republican state Rep Kendell Culp told Politico.
- “From Chinese Communist Party-affiliated purchases of agricultural land to efforts by the party to influence state and local politics, states are on the front lines of our New Cold War with the Chinese Communist Party,” Rep Mike Gallagher (R-Wisconsin), chair of the House Select Committee on China, told Politico.
Zoom in
Beyond land purchases, the scope of legislative actions includes limiting Chinese participation in educational institutions and divesting state funds from Chinese-held assets.These measures, supported by hawkish advocacy groups, aim to fortify states against a spectrum of perceived threats from Chinese government influence operations to espionage.
What next
- The trajectory of state-level initiatives against
Chinese land ownership and broader influence is likely to have ripple effects, potentially shaping federal policy directions and the national political landscape. As states assert their autonomy in foreign relations matters, a patchwork of regulations emerges, presenting both opportunities and challenges for US diplomacy and internal coherence in policy towards China and foreign investment broadly. - The intrigue: This decentralized approach to national security, emphasizing local action over federal oversight, may herald a new phase in American governance. It raises questions about the balance of power between state and federal authorities, the efficacy of local measures in addressing global challenges, and the potential for such policies to impact US-China relations and American economic interests.
(With inputs from agencies)
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