China Banned from Buying U.S. Property Under New 'Not One More Inch or Acre Act': Sales of Chinese-Owned Land Deemed 'National Security Risk' Ordered Within One Year

The 'Not One More Inch or Acre Act' flat-out prohibits Chinese citizens, entities, and anyone acting on their behalf from buying any real estate in the United States, effective immediately. This includes everything from farmland to city apartments, with the stated goal of curbing Chinese government influence. The law also cracks down on foreign land ownership reporting, boosting penalties to a minimum of 10% of the property's value for violations.

Real Estate Lockdown

The core of the bill (SEC. 2) is a sweeping ban. No Chinese citizen or entity connected to the Chinese government or Communist Party can purchase U.S. real estate. If the President decides any currently Chinese-owned property poses a 'national security risk'—a term not clearly defined in the bill—the owners must sell it within one year of the law's enactment. This could force a significant sell-off, potentially impacting property values in areas with high Chinese investment. Think of a business owner with even minor ties back to China – they could be forced to sell their commercial property, potentially at a loss, if deemed a 'risk'.

There are a couple of key exceptions. Refugees and those granted asylum from China are exempt from the buying ban. Also, the forced sale rule doesn't apply to property owned for personal use by U.S. citizens or legal permanent residents – so, a Chinese-American family's home is protected, but a Chinese national's investment property is not.

Who's 'Covered'?

The bill casts a wide net in defining 'covered foreign entity' (SEC. 2). It includes not only entities directly controlled by the Chinese government but also those 'acting on behalf of' or 'directed by' them. This could rope in businesses with even indirect links, creating uncertainty for companies with Chinese investors or partnerships. The broad definition could lead to disputes over what constitutes 'acting on behalf of' the Chinese government, potentially impacting legitimate businesses.

The increased penalties under the Agricultural Foreign Investment Disclosure Act (SEC. 3) are also significant. Failing to report foreign land ownership, or providing false information, now carries a minimum penalty of 10% of the property's value. This is a substantial hike, aimed at ensuring compliance with existing reporting requirements. For a farmer who fails to report foreign investment in their land, this could mean a hefty fine, potentially impacting their livelihood.

Beyond the Ban: Bigger Picture

While the bill aims to protect national security, it raises some serious questions. The lack of a clear definition of 'national security risk' leaves room for potentially arbitrary enforcement. Could a business be targeted simply because it competes with a U.S. company? The bill doesn’t say, which is a red flag. The broad definition of 'covered foreign entity' could also sweep up legitimate businesses, creating a chilling effect on foreign investment. The bill also has the potential to be viewed as discriminatory, and it will be interesting to see if it has any unintended consequences on property rights and international relations in general. This could impact anyone involved in international business or real estate, creating uncertainty and potentially hindering economic growth.