Douglas Todd: B.C.’s foreign-buyers tax is nothing special and not xenophobic

Agree:

It is hard to find a country that allows foreigners to freely buy its land. It is much easier to find countries that restrict foreigners’ purchases of property.

But that hasn’t stopped Chinese national Jing Li, assisted by some Canadian academics, from launching a lawsuit against the B.C. government’s 20 per cent tax on foreign buyers of residential properties.

Li, an international student who used her family’s money to buy a townhouse in Langley, argues the tax illegally discriminates against people on the basis of their national origin and has been stirred up by “unfair biases and stereotypes.” UBC academics Nathan Lauster and Henry Yu produced affidavits supporting Li’s argument the tax is xenophobic, especially towards Asians and specifically Chinese.

However, based on the logic of Li, Lauster, Yu and others who made their arguments last week before a B.C. Supreme Court judge, most countries of the world are xenophobic and perhaps racist — since most countries have a range of curbs on foreign buyers of property, with Li’s own populous country, China, throwing up some of the toughest controls.

Asian countries with restrictions on foreign buyers include the biggest: China, India, Indonesia, Thailand and the Philippines, plus Singapore, Malaysia and Hong Kong. Australia allows foreign nationals to buy only new dwellings, while New Zealand is developing a surtax.

There are also special constraints on foreign buyers in Mexico and even in the U.S. Many South American nations, including giant Brazil, limit foreign owners. So do many European countries.

While Li, to the applause of some Canadian property developers, has challenged the sovereignty of B.C. and Ontario (and Manitoba and Prince Edward Island) in bringing in restrictions on foreign buyers, most countries have no compunction in limiting foreign investors.

In China, the restrictions on foreign buyers of property are tricky, onerous, costly and always changing. For starters, foreigners might be shocked to find they can never actually own “dirt” in China, because the government maintains complete ownership of all land. Foreigners and citizens can only buy buildings.

Foreign nationals in China have had to prove they have been living in the country a year before they can buy property. It’s just one of hundreds of rules that countries around the world have to control foreign ownership.

A foreign national has had to meet numerous requirements to buy a dwelling in China, including proving they have been living in the country for at least a year. That is a residency requirement Canadian politicians never raise as even a possibility.

China, like most countries, makes no gesture toward a reciprocal arrangement with Canada or anywhere else.

And the laws vary abruptly by region in China. Foreigners who want to buy a house in Shanghai, for instance, have to prove they’re married. In Beijing, foreigners have to pay taxes for at least five years before officials allow them to buy a structure. And, even after that, a foreigner in Beijing can only buy one property, which has to be residential.

China’s regulations, designed to help its own citizens, go on and on.

Since, like most Asian countries, China also allows in extremely few immigrants, it is virtually impossible to become a citizen and then buy property in the country. The foreign-born portion of the population in most Asian countries is typically less than one per cent.

Many Muslim-majority countries also restrict foreign ownership. In Indonesia, the largest Muslim nation, foreigners can’t own land but can lease apartments (though not detached dwellings). Does that mean Indonesian officials are xenophobic, or simply protecting locals?

While the surtax in B.C. and Ontario applies equally to all foreign nationals, Turkey targets specific nations in the name of protection and political strategy. Turkey won’t allow people from neighbouring Russia or Greece to buy land in its popular border regions. Cubans and Nigerians are forbidden from buying anywhere in Turkey, which also places limitations on citizens of China and Denmark while allowing others more access.

European countries have various curbs. Denmark’s housing market is highly regulated; foreign nationals from outside Europe cannot buy real estate unless they prove they are permanent residents and will live full-time in the dwelling. Even European Union citizens cannot buy summer homes on Denmark’s sought-after coast. Britain has its own limits. And though large countries like France and Germany are fairly open, small Switzerland has erected more barriers than Denmark.

Even in North America, where free-market capitalism is said to reign supreme, both of our NAFTA partners have restrictions on foreign buyers.

The U.S. has subtle constraints on foreign ownership, including convoluted tax demands. A foreigner selling real estate in the U.S. must immediately send 10 per cent of the sale value to the Internal Revenue Service, where it’s held to pay capital gains. Foreigners also usually end up paying more death taxes on their U.S. properties than Americans.

Mexico simply doesn’t allow foreigners to directly buy the deed to properties in its so-called “restricted zone,” which covers everything within 100 kilometres of its coastline. Foreigners trying to snag properties in the restricted zone have to go through a knotty legal process.

All of which suggests the foreign-buyers tax in B.C. and Ontario — compared to the incredible range of restrictions around the world — is distinctly middle of the road.

And if critics deem the foreign-buyers tax to be xenophobic or racist, they must be ready to toss the same epithets at most of the world’s nations.

Source: Douglas Todd: B.C.’s foreign-buyers tax is nothing special and not xenophobic

A forgotten history: tracing the ties between B.C.’s First Nations and Chinese workers

A fascinating piece on the early history of Chinese in Canada:

Before the railway, before British Columbia joined Confederation, many Chinese were already here. They were farming, mining and logging. They arrived by the hundreds starting in 1858 at the start of the gold rush, and Henry Yu, a professor of history at the University of B.C., says some arrived almost 200 years ago on what is now Vancouver Island. To succeed and survive, the Chinese forged relationships with the province’s First Nations who also faced extreme discrimination by the white colonists.

“The Chinese dealt in reciprocal ways with First Nations. They didn’t take, they asked. They brought gifts, they shared foods. They did relationship-building,” said Prof. Yu, who is now helping the provincial government on a project that will see a string of Chinese historic sites in the province officially preserved and recognized.

An estimated 15,000 Chinese men worked on the railway in B.C. in the 1880s. They were paid half the wages of the white workers, got no medical care and were typically assigned the most dangerous jobs. Once the work was complete, the European settlers sought to drive the Chinese workers out of the province with a race-based Head Tax. The Chinese were regarded as the temporary foreign workers of their time – with the last spike in place, they were no longer wanted here.

“There is a long history that has been distorted, deliberately suppressed, or erased,” said Prof. Yu.

The most concrete remnants of that history are found on the banks of the Fraser River. There, the Chinese built elaborate gold-mining operations among the First Nations communities. Sometimes, the men stayed and married into those communities.

Bill Chu, founder of the Canadians For Reconciliation Society, and Bill Paul, a member of the Lytton First Nation, look over the remains of a metal band used on wooden steam trunk on the banks of the Fraser River. (John Lehmann/The Globe and Mail)

The Sto:lo people have their place names that mark this shared history. “Sxwóxwiymelh” is a place where a large number of Chinese railway workers died of the flu. They call the rolling hills opposite the mouth of the Coquihalla River “Lexwpopeleqwith’aim” – it means “always screech owls” but the word took on a dual meaning as a reference to the ghosts of Chinese workers who are said to haunt the area where many were killed during a blasting accident.

Mr. Chu is an accidental, amateur historian of British Columbia, drawn into the stories of the early Chinese railway workers and gold miners through his activism on behalf of Canada’s First Nations. He came to Canada from Hong Kong in 1974. As a newcomer, he knew nothing about the role of the Chinese in building this province.

“We are not all ‘new Canadians’ – we are as old as this province,” Mr. Chu said. Travelling up and down the Fraser Canyon, Mr. Chu has gathered stories of the Chinese railway workers kept by Sto:lo elders and others. He has visited many of the gold-mining operations that are still evident. “We are learning the history of this country from the mouths of its indigenous people,” he noted.

A forgotten history: tracing the ties between B.C.’s First Nations and Chinese workers – The Globe and Mail.

Bilingualism isn’t a sign of community decay

Bilingualism from a BC perspective by Henry Yu – English and Asian languages. Resentment by English speakers with other languages remains an issue; being able to recognize that people live in both and the opportunities for exchanges and getting to know each other remain:

One of those legacies is the odd belief that it is better that we all speak only English for the benefit of those who can only speak English, rather than allowing those who can speak both English and other languages to be respected and even rewarded for being able to speak many languages. English is extremely useful as a lingua franca, a language used in common by many people who can also speak other languages. That is fundamentally different than saying we should all speak only English all the time.

In this city, almost all those under the age of 25 who can speak Chinese can also speak English. They have the wonderful ability to speak multiple languages.

Those Cantonese-speaking youngsters on the bus likely use English most of the time at school and work. Why be angry at them for being able to also carry on a conversation in another language?

Guest column: Bilingualism isn’t a sign of community decay.