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Prohibits citizens and certain entities from the People’s Republic of China from acquiring U.S. public or private real estate and gives the President authority to block purchases and require sale of covered property in some cases, while carving out limited exceptions for certain refugees/asylees and for property held for personal use by U.S. citizens or lawful permanent residents. Also revises a phrase in the Agricultural Foreign Investment Disclosure Act to add an additional ownership threshold language change, but does not specify an effective date or implementing details.
Beginning on the date of enactment, the President must prohibit the purchase of public or private real estate located in the United States by (A) any citizen of the People’s Republic of China, (B) any covered foreign entity, and (C) any foreign person acting for or on behalf of the Chinese Communist Party, a covered foreign entity, or a citizen of the People’s Republic of China.
If the President determines that ownership (as of the date of enactment) by a person described above of U.S. real estate poses a national security risk, the President must require the sale of that real estate by not later than one year after the date of enactment.
Subsection (a) does not apply to a citizen of the People’s Republic of China who (A) entered the United States as a refugee (as defined in INA section 101(a)(42), 8 U.S.C. 1101(a)(42)) or (B) was granted asylum or withholding of removal under INA section 208 or 241(b)(3) (8 U.S.C. 1158 and 1231(b)(3)).
Subsection (a)(2) (the sale requirement) does not apply to the sale of real estate owned or held for personal use by a United States citizen or an alien lawfully admitted for permanent residence.
Defines 'covered foreign entity' to mean an entity that (A) acts on behalf of or is directed by the Government of the People’s Republic of China or the Chinese Communist Party; (B) is organized under PRC law, has a principal place of business in the PRC, or is owned/controlled by or subject to PRC/CCP jurisdiction; or (C) is a subsidiary of such an entity.
Who is directly affected
Citizens and entities of the People’s Republic of China: The bill targets these foreign nationals and organizations by prohibiting property purchases and enabling forced divestiture in covered cases. Existing owners identified under the statute could face sales requirements.
U.S. property owners and buyers: U.S. citizens, lawful permanent residents, and domestic entities may face market effects (price shifts, reduced buyer pool) in areas where PRC buyers were active. Partnerships or deals involving PRC persons or PRC-controlled entities could be disrupted.
Agricultural land stakeholders: The AFIDA wording change could alter reporting or coverage thresholds for foreign investments in agricultural land, affecting landowners, brokers, and investors who transact agricultural property with foreign parties.
Federal government and enforcement agencies: Agencies (not specified in the text) would need to interpret, administer, and enforce the prohibitions and any divestiture orders; absent implementing language, significant regulatory work would be needed before enforcement operations begin.
How they are affected
Forced divestiture risk: Covered foreign owners could be required to sell property they currently hold; this raises potential legal challenges based on property and due-process claims.
Market and transaction friction: Real estate transactions involving foreign parties from the PRC may require additional screening, delays, or rejection. Buyers and sellers may face uncertainty until implementing rules clarify procedures.
Reporting and compliance changes for agricultural investors: The AFIDA text change may expand or alter which transactions or ownership shares trigger disclosure, but the precise compliance impact is unclear without agency guidance.
Legal and diplomatic implications: Targeting nationals and entities of a single country can raise diplomatic tensions and invite litigation challenging constitutionality or statutory authority; courts may be asked to weigh in on scope and process.
Uncertainties and implementation risks
Expand sections to see detailed analysis
Read twice and referred to the Committee on Foreign Relations.
Introduced January 22, 2025 by Thomas Bryant Cotton · Last progress January 22, 2025
Read twice and referred to the Committee on Foreign Relations.
Introduced in Senate