The Big Picture
The controversy highlights the ongoing clash between the Republican-controlled legislature and the Democratic Governor over national security and foreign investment policy. The vetoed bills sought to block the sale of Arizona land to entities of the People’s Republic of China and prevent state tax dollars from going to CCP-affiliated companies.
Driving the News
- The Vetoes: Governor Hobbs vetoed two different Republican-backed bills. Senate Bill 1109 would have banned the Chinese government from owning land in Arizona, especially near sensitive military installations. House Bill 2542 would have required state contractors to certify they are not owned or controlled by the Chinese government.
- The Governor’s Stance: In her veto messages, Governor Hobbs argued the bills were “ineffective at counter-espionage” and contained legal loopholes that would allow CCP proxies to bypass the restrictions. She instead proposed her own, more comprehensive legislation, dubbed the “BAN Act,” which would apply to all foreign adversary nations including Russia, North Korea, and Iran.
- The Donation: Political opponents quickly seized on a recent campaign disclosure revealing a donation from a company or individual with documented ties to mainland Chinese business interests. This donation, received shortly after the vetoes, fueled accusations of hypocrisy and prioritizing political contributions over national security.
Why It Matters
Republicans have accused the Governor of “playing both sides” and weakening state defenses against foreign threats, particularly regarding land near critical military bases like Luke Air Force Base. Proponents of the vetoed bills argue they were necessary steps to protect Arizona’s supply chains and national security. The Governor’s office maintains that her subsequent BAN Act proposal is the only effective way to protect the state, calling the vetoed bills “weak-on-China” political stunts.
