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Signed by Florida Governor Ron DeSantis in early May, the law is due to take effect in July. Photo: AFP

Chinese residents, real estate firm sue Florida state officials over property ownership ban

  • Federal complaint seeks to overturn bill signed by Governor Ron DeSantis prohibiting such purchases by citizens from China and other countries
  • ‘All Asian-Americans will feel the stigma and the chilling effect created by this Florida law,’ says lawyer for plaintiffs
A group of Chinese residents and a real estate brokerage in Florida have filed a complaint in federal court, seeking to overturn a bill signed into law this month by the US state’s governor, Ron DeSantis, that places prohibitions on real estate purchases on citizens from China and other countries.

Calling the law a violation of equal protection and due process rights under the US Constitution’s 14th amendment, the plaintiffs – Yifan Shen, Zhiming Xu, Xinxi Wang and Multi-Choice Realty LLC – are suing three state officials to stop the law from going into effect and for the legal fees incurred to fight it.

Described by DeSantis as a measure aimed at stopping the Chinese Communist Party’s “influence in the state”, the law is set to take effect on July 1.

The named defendants are Wilton Simpson, Florida’s agriculture commissioner; Meredith Ivey, acting Florida secretary of economic opportunity; and Patricia Fitzgerald, chair of the Florida Real Estate Commission.

Florida Governor Ron DeSantis, a Republican and possible US presidential candidate, speaking in Orlando on Saturday. Photo: Reuters

The plaintiffs claimed in the complaint that they “will be forced to cancel purchases of new homes, register their existing properties with the state under threat of severe penalties, and face the loss of significant business. The law … casts a cloud of suspicion over anyone of Chinese descent who seeks to buy property in Florida”.

The law also “intrudes on the federal government’s power to superintend foreign affairs, foreign investment, and national security; and it recalls the wrongful animus of similar state laws from decades past – laws that were eventually struck down by courts or repealed by legislatures”, the complaint added.

Other nations labelled as “countries of concern” in the bills were Russia, Iran, North Korea, Cuba, Venezuela and Syria.

The Florida Department of State did not immediately respond to a request for comment on the matter.

Previous acts cited in the complaint included “alien land laws” enacted in the early 20th century and primarily directed against people of Chinese and Japanese descent that prevented them from owning land. All such laws were struck down after being deemed unconstitutional.

It also referenced the Chinese Exclusion Act, which blocked most immigration from the law’s namesake country while it was in effect from 1882 to 1943.

State initiatives aimed at countering perceived threats emanating from China are proliferating in the US.

DeSantis signed two other China-related bans into law along with the one that restricts land purchases: one on the use of Chinese-owned video-sharing TikTok and other Chinese apps on school and government servers and another that prohibits universities in the state from accepting any funds from China.

Louisiana’s House of Representatives, meanwhile, is expected to vote on a bill similar to Florida’s land law on Tuesday, after members of the chamber’s agriculture, forestry, aquaculture, and rural development committees last week unanimously approved the measure.

And last week, Montana Governor Greg Gianforte signed into law a bill that completely bans TikTok in the northern US state, making it the most stringent measure in the country among initiatives restricting usage of the popular app.

The plaintiffs in the Florida case are represented by the American Civil Liberties Union, the ACLU of Florida, DeHeng Law Offices PC, and the Asian American Legal Defense and Education Fund (AALDEF), in coordination with the Chinese American Legal Defense Alliance (CALDA), a non-profit organisation.

“All Asian-Americans will feel the stigma and the chilling effect created by this Florida law, just like the discriminatory laws did to our ancestors more than 100 years ago,” said Clay Zhu, a lawyer with DeHeng and co-founder of CALDA, in a joint statement distributed by the non-profit organisation. “We shall not go back.”

AALDEF legal director Bethany Li also connected Florida’s law to discriminatory measures taken by the US government against Asian populations.

“We have repeatedly seen how policies in the name of national security have harmed Asian-Americans – from immigration restrictions, to the World War II incarceration of Japanese-Americans in camps, and post-September 11 surveillance,” Li said.

“Failing to call out the discriminatory impacts means our community will continue to experience racism, violence, and the erosion of rights.”

The plaintiffs also pointed out that the new law offers only a narrow exception allowing a person from China with a valid non-tourist visa or who has been granted asylum to buy one residential real property, and only if the property is less than two acres and is not within five miles of a military installation.

“Notably, there are more than a dozen military installations in Florida, many of them within five miles of city centres like Orlando, Tampa, Jacksonville, Pensacola, Panama City, and Key West,” the complaint said.

Targeted people “owning or acquiring property in violation of the foregoing prohibitions are subject to civil forfeiture of their property”.

The complaint also asserted that measures intended to protect national security should be enacted on the federal level.

“The federal government manages foreign affairs, foreign investment, and national security in the United States, including through two federal regimes,” it said.

The Committee on Foreign Investment in the United States, which reviews inbound investments for national security vulnerabilities, was given expanded powers in 2018 to unwind completed transactions, and the Treasury Department’s Office of Foreign Assets Control administers and enforces economic regulations and trade sanctions.

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