Cold War 2.0? As Chinese buy more land in US, movement for new laws gathers pace amid national security concerns

Concerned over reports of land purchases by Chinese citizens and companies in the US, state legislators, predominantly in Republican strongholds, are proposing and enacting a series of laws to restrict such purchases, citing rising national security concerns.

A Politico report highlights the surge in legislative activity aimed at addressing what lawmakers perceive as a significant and escalating threat to national security. According to data from the non-profit National Agricultural Law Center, over 20 states are currently in the process of implementing new restrictions on foreign land acquisitions or updating existing legislation. This follows in the wake of at least 15 states passing laws in 2023 that placed limitations or outright bans on foreign ownership of land.

These legislations come in response to various incidents, including the discovery and subsequent dismantling of a Chinese spy balloon over the continental US in February 2023, alongside a steady stream of official warnings regarding Beijing’s perceived national security threat.

Many states have already implemented laws to curb farmland sales to foreign investors and entities. In 2023 alone, a dozen states passed legislation restricting foreign investment in agricultural land, as per the National Agricultural Law Center.

According to a 2021 Department of Agriculture report, China’s ownership of agricultural land in the US stands at approximately 384,000 acres. This figure encompasses 195,000 acres, valued at nearly $2 billion at the time of purchase, held by 85 Chinese investors, including individuals, companies, or government entities.

Moreover, a Forbes report notes that an additional 189,000 acres are owned by 62 US corporations with Chinese shareholders, acquired for $235 million. Between 2015 and 2019, Chinese ownership of agricultural land in the US experienced a modest increase of approximately 550 acres.

However, a significant surge occurred between 2019 and 2020, witnessing a 30% jump in ownership from around 247,000 acres to approximately 352,000 acres. Notably, US companies with Chinese shareholders contributed to this growth by acquiring 102,000 acres, more than doubling their acreage within that year.

In 2021, China added another 32,000 acres of US agricultural land, while not as substantial as the increase in 2020, still marked a 98% rise compared to the total growth from 2015 to 2019, as highlighted in the Forbes report. Concerns have been raised regarding the potential for the Chinese government, through these Chinese corporations, to attain control over American assets or access sensitive information within the US.

US intelligence officials have increasingly sounded the alarm on China’s influence operations within the country. A recent national Marist Poll, commissioned by the non-profit advocacy group State Armor — which has been actively pushing for legislation to limit Chinese land acquisitions — revealed that 73 percent of 1,455 surveyed Americans support banning China and other “adversaries or national security threats” from providing components for critical infrastructure, such as cell phone towers and electrical grids.

Currently, approximately half of U.S. states have laws in place that restrict foreign ownership of agricultural land, while around 20 states permit foreign land investments. However, it’s important to note that some states limiting land sales to foreign investors only regulate agricultural land, not privately owned land, according to the law center.

Despite efforts to safeguard agricultural land in about half of the nation’s states and the implementation of restrictions on sales near military bases, there remain significant information gaps regarding the identity of land buyers and owners.

“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,” U.S. Sen. Jon Tester, D-Wy., told NPR in June.

A Department of Defense report released on December 31 of last year further underscored these concerns regarding Chinese military companies conducting business in the United States. According to the report, China has 46 military firms and their subsidiaries operating within the United States under the guise of civilian entities.

“Growing foreign ownership of U.S. farmland, particularly by China, poses a direct threat to our food security and national security,” U.S. Reps. Glenn Thompson, R-Pa., and James Comer, R-Ky., said in a joint statement Jan. 18.