House votes to limit Chinese companies from purchasing Michigan land

The Michigan House passed a package of bills Tuesday aimed at curbing “hostile foreign influence” in Michigan.

The eight-bill package would limit how Chinese and Russian companies could do business in Michigan, forbidding them from purchasing farmland and property near military installations along with making them ineligible for state economic incentives and more.

It would also put restrictions on how public schools and universities interact with China, Russia and other “countries of concern,” limiting what grants they can receive from these countries and requiring federal authorities to vet any cultural exchange agreements with those countries.

The package was passed Tuesday, May 6, mostly along party lines, with all Republicans in favor and most Democrats opposed. The bills will now be considered by the Democratic-majority Senate.

State Rep. Bill G. Schuette, R-Midland, said the measures in the package would protect Michigan’s residents, security and economy from various forms of foreign meddling.

“From my experience as an intelligence officer with the Defense Department, I know firsthand there are adversaries out there who are looking to steal our data and undermine our state and country where they can,” Schuette said.

“I would monitor and evaluate how our nation’s enemies and their governments like China, Iran and North Korea attempted to gain influence, subvert sovereignty and gain control in many countries across the globe.

“Now, as a member of the state Legislature, I find it very unsettling that some of these same tactics are being used here in Michigan.”

Two bills in the package weren’t advanced to a vote Tuesday. One of the bills would’ve banned state and local governments from using communications and information technology made in China and other “countries of concern.” Another would’ve forbid state and local government from contracting with businesses in or governments of countries of concern.

Related: Michigan GOP proposes restrictions on foreign land ownership, use of Chinese communications tech

Countries of concern are defined in the bills as China, Russia, Iran, North Korea, Cuba, Venezuela and Syria.

Lawmakers in the Michigan Democratic Party’s Asian Pacific American Caucus likened the two bills in the package restricting foreign land ownership to racist alien land laws. Those laws largely targeted Asian immigrants and prohibited or limited the land they could purchase.

“Our Constitution clearly protects property rights for Michiganders, and our civil rights laws protect individuals from discrimination based on national origin,” the lawmakers said. “House Bills 4233-4234 do nothing to help Michiganders struggling to afford a decent home or solve our housing crisis. In fact, these bills would make it harder for realtors to do their jobs, further xenophobia, create a logistical nightmare and would absolutely be challenged quickly in court for being unconstitutional.”

The bills would ban governments, party officials, businesses or other “combination of persons” based in countries of concern from purchasing farmland in the state and property within 20 miles of military installations or critical infrastructure like water treatment plants, power plants, chemical manufacturing plants and more.

Land currently owned by these entities would have to be sold within two years of the legislation taking effect, said state Rep. Gina Johnsen, R-Portland.

Johnsen said “foreign enemies” are purchasing farmland to steal away the symbol of “food security, generations of farming traditions and American self-reliance.”

“There is something intrinsically American about driving through rural Michigan surrounded by farmland as far as the eye can see,” said Johnsen. “Now, imagine the fear and doubt you’d feel knowing the fields surrounding you were owned by the Chinese or Iranians – countries who want nothing more than to see our democracy collapse.”

While all bills in the package drew support from Republicans and little from Democrats, two of them saw more support across the aisle.

The bill requiring physical and virtual medical records to be maintained in either the U.S. or Canada passed by a 71-39 vote. Republicans hold 58 seats, while Democrats hold 52.

The other bill would require the state to determine which applications from countries of concern might compromise security.

State and local governments and public schools would then be required to block those applications from government-issued electronic devices and networks.

The bill passed by a 79-31 vote. Speaker Pro Tem Rachelle Smit, R-Martin, said some foreign-owned apps are used to collect sensitive information.

“Our enemies abroad are doing everything they can to infiltrate our country and do harm to our residents,” said Smit. “Allowing apps operated by our biggest foreign threats on government devices gives bad actors a free pass to access our government systems, sensitive data, and national security information. We must slam the door in their face and show that Michigan has no tolerance for foreign meddling.”

The bill package stems from the Homeland Security and Foreign Influence Committee, created earlier this year by the new House Republican majority to address concerns about foreign influence, especially Chinese influence, in Michigan.

Here’s some of what the other bills in the package would do:

• Prohibit public schools and universities from accepting grants or entering into agreements with countries of concern that involve promoting an agenda detrimental to U.S. safety or allowing the curriculum to be controlled or directed by a country of concern
• Prohibit local governments from accepting grants or entering into agreements with countries of concern that allow those countries to control the values of a program or promote an agenda detrimental to U.S. safety
• Prohibit public schools, universities and local governments from accepting gifts, donations or grants that are conditioned on promoting the language or culture of a country of concern
• Require local governments and universities to disclose to the state gifts or grants that are from a country of concern
• Forbid the state government from issuing economic incentives through the Michigan Strategic Fund to businesses partially or fully controlled by countries of concern or created in those countries.