Paul L. answered 03/08/16
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What you're asking about is actually known as the Chinese Exclusion Act. The background for this goes back to the California Gold Rush of the late 1840s - mid 1850s. (That's where the name "forty-niners" comes come- 1849.) Word reached China, and many Chinese immigrated to California.
As the gold mines dried up, people struggled to get good jobs in California. Tension between Americans and Chines immigrants increased, even though the Chinese who were working worked at low paying jobs. It's easy to understand why Americans would blame the Chinese immigrants for their misfortune.
Also, the American economy as a whole was not doing well after the Civil War. So it wasn't just California that was having difficult economic times.
I hope that helps.
Paul L.