Bill to prevent China from buying Alabama real estate passes House

On Tuesday, the Alabama House of Representatives passed legislation that would forbid Chinese citizens, Chinese businesses and corporations, and the Chinese Communist Party and government from being able to purchase land and other real property in the state of Alabama.

House Bill 379 (HB379) is sponsored by House Majority Leader Scott Stadthagen.

Stadthagen said, “They are the biggest threat to us.”

The synopsis states, “Under existing law, an alien, whether resident or nonresident, may own, hold, or dispose of real property with the same rights as a native citizen. This bill would prohibit Chinese citizens, the Chinese government, or Chinese entities from acquiring title to real property in the state.”

State Representative Mary Moore said they were not a problem until Ronald Reagan.

“When President Reagan started encouraging our companies to go overseas,” Moore said. “That accounts for a lot of poverty, especially in southern Alabama and eastern Alabama because they were clothing manufacturers.”

“The problem is bigger than the state of Alabama,” Moore said. “President Reagan loved China, and they became a superpower.”

Stadthagen explained that if his bill passes, “They can’t purchase property in Alabama.”

Rep. Jamie Kiel said, “Your bill protects the state from the communist Chinese.”

“My district was also impacted by the great sucking sound of jobs leaving the country that Ross Perot talked about, and that was under President [Bill] Clinton in 1994 with NAFTA,” Kiel said. “President [Barack] Obama said that the relationship between the U.S. and China was the most important bilateral relationship in the world.”

“Whoever started it, it is time to stop it, and I appreciate the bill,” Kiel said.

Rep. Tracy Estes said, “For those who may think that the Chinese are not the greatest threat to this country, don’t be fooled.”

Rep. Napoleon Bracy asked, “What prompted this?”

Stadthagen explained, “In the last year, the Chinese have purchased over six billion dollars’ worth of property.”

“This is a protection bill,” Stadthagen said. “I know of several real estate contracts that are in progress.”

Bracy asked, “What if they are already here?”

“Then they are already here,” Stadthagen answered.

“What if they wanted to expand?” Bracy asked.

“Then they have to get a citizen or a dual citizen to purchase that property, and they can lease it from them,” Stadthagen answered.

Bracy asked, “Could this hurt the economy?”

Stadthagen said that it had not in the other states that have done this, but admitted, “This is something that is fairly new.”

Stadthagen said, “The Department of Commerce wants to talk to me about it before it goes upstairs to the Senate.”

Bracy said that a Chinese corporation had bought piston engine manufacturer Continental Motors.

“Continental is in Mobile,” Bracy said. “Are they the enemy? They are providing jobs to our citizens. They are providing over 300 jobs.”

“If Continental Motors decides to leave and those 300 jobs and their $75 million investment leaves with them, then we are impacting a lot more people than what this was designed to impact,” Bracy said.

Rep. Tim Wadsworth expressed concerns that the way this was written would also apply to Taiwan.

“Taiwan is not a part of it,” Stadthagen said.

“About 90% of the semiconductor chips in this country are made in Taiwan,” Wadsworth said. “China and the U.S. actually consider Taiwan to be one country as part of the one-China policy.”

Rep. Sam Jones said, “Continental Motors was a U.S. Company that sold out to China. They have been in Mobile for over 50 years.”

Jones said he had been on several international job recruiting trips as the Mayor of Mobile.

“We weren’t recruiting politics – we were recruiting jobs and companies,” Jones said. “Do I support the communism in China? No, I don’t, but we are a world economy.”

Stadthagen said, “Do you know how many acres of land are owned by other countries? 1.4 million acres in Alabama are owned by foreign countries.”

Jones said, “Alabama exports surged to over $25 billion last year. Our two largest trading partners are Germany and China.”

“We don’t handle foreign policy,” Jones said. “That is not what we do here. You don’t know the facts because you have never spent any time recruiting industries.”

“We watch Florida and pass everything that they do down there,” Jones said. “I am surprised that we have not passed anything about Mickey Mouse yet. We follow Florida, but we aren’t Florida.”

Rep. Neil Rafferty asked about Chinese people that have moved here seeking asylum.

“They can lease a house or property while they work on their citizenship,” Stadthagen answered.

Rafferty asked, “Why don’t we do this for Vietnam or Laos? They are communist.”

“They are not a threat to us,” Stadthagen answered.

Rafferty asked, “What other countries would you do this with?

“North Korea and Iran,” Stadthagen answered.

Rep. John Rogers said, “The federal government is the one who ought to be pulling the trigger on China.”

“If China were to stop exporting all the stuff they make for us, we would be in a world of hurt,” Rogers said. “This concerns me because it seems to single out one particular race. I like Chinese food.”

Rogers asked, “If China called in our debt, can we pay it?”

Stadthagen answered, “We can’t.”

Rogers said, “Can you imagine if we had a war with China? We will have to draft you.”

Rep. Barbara Drummond said, “I am here standing for Mobile. Brookley is in my district, so I have seen this business grow. I have seen Brookley take off. They are contributing to our local economy. They are contributing to the Alabama economy. I know China is a communist country, and I know how they treat women, and I don’t like that.”

Drummond said, “Our Chamber has red-flagged this for us and said that this is going to hurt.”

Rep. Ben Robbins offered an amendment addressing members’ concerns. The amendment exempted companies already operating in the state and Taiwan from the legislation.

Stadthagen accepted the amendment as friendly, and it was adopted in a 100 to 0 vote.

SB379 passed the House in a 73 to 23 vote. It now goes to the Senate for their consideration.

Thursday will be Day 20 of the 2023 Alabama Regular Legislative Session.

To connect with the author of this story or to comment, email brandonmreporter@gmail.com.