The 2023 Florida legislative session approved SB 264 “Interests of Foreign Countries” by overwhelming majorities in each chamber. It was an effort to abide by Will Rogers’ advice. Signed by the governor and put into effect on July 1st, the bill restricts the activities of individuals and governments hostile to United States interests within the state of Florida. China, in particular, is singled out for attention.
The Hole
Prior to the year 2000 Chinese influence in USA and international affairs was limited. The principal concern of the Chinese Communist Party (CCP) focused on trying to feed and employ almost 1.5 billion people.
In March of 2000 then President Bill Clinton persuaded the World Trade Organization (WTO) to accept China’s ascension to membership. He advocated that WTO inclusion would modify CCP behavior making China a more open society and mindful of the rules that WTO nations were expected to accept. The reality was an upside down result with Chinese rogue behavior expanding with subsidies from WTO nations.
How Deep is the Hole?
Less than a quarter century after WTO membership was extended to China it has become the world’s factory. With its massive labor pool (restricted from unionization), government subsidies of land and capital to favored producers, China leap frogged to almost a third of all global manufacturing by 2021. Prior to the COVID pandemic the USA was buying almost half a trillion dollars of goods from China yearly.
How dependent both global and American economies were on Chinese exports was revealed during the COVID related supply chain disruptions. Countries and companies began, and continue, to reduce exposure to Chinese unreliability, rising costs and predatory practices.
China’s rogue behavior, even after decades of WTO membership, has raised alarms throughout the world. Some examples of unacceptable CCP actions are:
- COVID origin stonewalling
- Espionage and IP theft
- Territorial ambitions
- Military intrusions
- Currency manipulation
In 2023 the Florida legislature, with support from the governor, opted to place restraints on CCP designs within the state. Florida, at least, would “stop digging” the hole.
What are SB 264 main points?
- Although primarily aimed at CCP activities, SB 264 also designates Russia, Iran, North Korea, Venezuela and Syria as hostile nations subject to the same restrictions as China.
- Prohibits foreign principals from owning or acquiring agricultural land in the state.
- Prohibits foreign principals from owning or acquiring any interest in real property within 10 miles of any military installation or critical infrastructure in the state.
- Prohibits China, Chinese Communist Party or other Chinese political party officials or members, Chinese business organizations, and persons domiciled in China, but who are not citizens or lawful permanent residents of the U.S., from purchasing or acquiring any interest in real property in the state.
- Provides limited exceptions from the ownership restrictions for the purchase of one residential property that is not on or within 5 miles of any military installation in the state.
- Requires that the offsite storage of certain personal medical information be physically maintained in the continental U.S., U.S. territories, or Canada.
- Requires licensees to the Health Care Licensing Procedures Act to sign affidavits attesting that all patient information stored by them is being physically maintained in the continental U.S., U.S. territories, or Canada.
Who opposes SB 264?
Opposition is relatively light. Commercial developers, through the Florida Real Estate Commission (FREC), are concerned that investment funds that include individual investors from China may be barred from the Florida market. The FREC claims that Chinese investors are typically third party and have no control rights.
FREC proposes clarifying language specifying “any investments that do not constitute a ‘controlling interest’ and are managed by an investment adviser registered with the U.S. Securities and Exchange Commission are permissible.”
FREC’s request may be at odds with the need to protect Florida low and middle income housing prices. Foreign and domestic hedge fund investment tends to drive housing costs up. This may be good for their bottom line but makes home ownership more challenging for those of limited means. The large influx of new Floridians has already driven housing prices upward.
The need to protect Floridians from the predatory practices of China and other hostile nations will require our state government to carefully consider both security concerns and economic impacts. SB 264 (2023) is legislation that should be addressed without hesitation.
Stay Informed and Engaged
COS encourages us to engage on topics that impact our national and state security. Thank your legislator if s/he approved SB 264. If you disagree with SB 264 or your legislator was opposed, all the more reason to open a discussion. It is only through respectful debate that we build a better union.
