Tariffs? Forget them. According to Arthur Hayes, co-founder of BitMEX, the real threat to the U.S.-China relationship isn’t loud trade wars — it’s quiet capital restrictions that will drive the final wedge between the two global powers.

Hayes spoke out after the Texas House of Representatives passed the controversial SB 17 bill, which would ban citizens from China, Russia, Iran, and North Korea from purchasing real estate in the state. And it's not just about homes — agricultural and commercial land is also on the list.

It might sound like another round of economic warfare. But Hayes sees something deeper: a strategic push to block “enemy” nations from accessing U.S. assets and property. And that, he argues, could be the real start of an economic divorce between the world’s two largest economies.

🏛️ “Security” or discrimination?

Supporters of the law say it's about national defense. Texas lawmaker Cole Hefner claims the goal is to protect local land and resources from hostile regimes. But not everyone agrees.

Critics warn of sweeping consequences. Democrat Gene Wu noted the bill could harm thousands of foreign nationals living and working legally in Texas, including those with student and H-1B work visas. The language, he argued, is too vague and invites discrimination.

🧨 Anti-China rhetoric and the deeper game

This legislation emerges amid rising anti-China sentiment in U.S. politics, often fueled by Republicans and former President Donald Trump, who famously used tariffs to exert pressure on China.

But what if these quiet real estate bans turn out to be even more powerful than tariffs? According to federal data, Chinese nationals owned nearly 384,000 acres of land in the U.S. by the end of 2024 — enough to raise political eyebrows.

📣 Austin protests erupt: "Stop the hate"

The passage of SB 17 sparked a wave of public protest. Hundreds took to the streets in Austin, waving signs reading “Stop Hate” and “Housing is a Human Right.” Activists called the bill xenophobic and racist, particularly targeting Asian communities.

Alice Yi, co-founder of Asian Texans for Justice, didn’t mince words: “This is a racist bill. It targets immigrants based on their nationality.”

🧩 A fine line between protection and exclusion

Republican Wes Virdell abstained from voting outright, saying the law missed its mark. It was meant to prevent land purchases by foreign adversaries, but instead “entangles everyday people.”

Democrat Ray Lopez withdrew his support after his amendments were rejected. “If this bill targeted Mexican Americans the way it names Chinese Americans, I’d be outraged,” he said. “It’s discriminatory, man.”

Maybe Hayes has a point. The world tends to think of economic war in terms of tariffs and trade. But what if the true unraveling of U.S.-China ties happens quietly — through land, legalese, and locked-down capital?


#usa , #china , #Geopolitics , #ArthurHayes , #CryptoPolitics

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