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Judge grants temporary restraining order blocking Arkansas enforcement of anti-Chinese-ownership and data center laws

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Judge grants temporary restraining order blocking Arkansas enforcement of anti-Chinese-ownership and data center laws

LITTLE ROCK, Ark. – Arkansas cannot enforce two recently passed laws that block foreign ownership after a federal judge issued a temporary restraining order on Monday.

U.S. District Judge Kristine G. Baker issued the order after Jones Eagle LLC filed a suit against Agriculture Secretary Wes Ward and Attorney General Tim Griffin. The suit maintained that the two laws, Act 636 of 2023 and Act 174 of 2024 violated the 14th and 5th Amendments because they acted upon perceived Chinese ownership.Arkansas attorney general investigation determined China’s government does not own Ft. Smith property

The order is in effect for 14 days.

According to the filing, Jones Eagle is controlled by Qimin “Jimmy” Chen, who immigrated to the United States as a child. Chen’s attorneys assert that he was being threatened with enforcement of acts 636 and 174 for opening a crypto mining site near DeWitt.

Baker granted the temporary restraining order, halting the enforcement of the two acts, citing the potential for “irreparable harm,” including the refusal of the attorney general’s office to protect Jones Eagle’s confidential business records or meet with Jones Eagle. She also cited possible damage to Chen’s business reputation.Arkansas secretary of agriculture asks attorney general to investigate possible Chinese ownership of Sebastian County business

Baker also pointed out that Jones Eagle will likely succeed in its suit, including the unconstitutionality of the two acts. The judge acknowledges that she has no full record since Ward and Griffin have not yet filed their responses.

The order also halts the attorney general’s investigation into Jones Eagle.Chinese seed company ordered to divest Arkansas land holdings pays $280,000 fine

Governor Sarah Huckabee Sanders stated Arkansas would fight the restraining order.

The governor posted on social media,

Arkansas has the only law in the country that’s successfully kicked a Communist Chinese company off our farmland — and a judge just blocked it,

“Our foreign adversaries have no right to American land. We will appeal this ruling and protect our state.”

Act 636 became law shortly after the 2023 Chinese spy balloon incident that generated public concern about foreign espionage. 

READ the latest news shaping the data centre market at Data Centre Central

Judge grants temporary restraining order blocking Arkansas enforcement of anti-Chinese-ownership and data center laws, source

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