The Chinese Exclusion Act of 1882 was a U.S. law that prohibited Chinese laborers from immigrating and severely restricted the rights of Chinese immigrants already in the country. This law reflected the racial biases of the time, portraying Chinese people as "passive" and incapable of participating in democratic government. Lee's parents, Lee Towe and Lee Lai Beck, were able to immigrate under one of the few exceptions to the Exclusion Act, as they were teachers working for the Baptist Church, using this loophole to come to America.

The Page Act of 1875 had already targeted Chinese women, falsely assuming that they were immigrating for prostitution. The 1882 Exclusion Act reduced Chinese immigration and denied them citizenship, making them the only group ineligible for naturalization in the U.S. This law was renewed every ten years and extended to other Asian countries in 1924.

Despite these discriminatory laws, Lee was undeterred in her advocacy for women's rights and racial justice. By the early 20th century, most Chinese immigrants in the U.S. were men, living on the West Coast or in Hawaii. Lee’s mother, a teacher in China, was aware of the feminist movements in both China and the U.S., and she and Lee’s father raised her as an independent, modern woman. Unlike her mother, who had her feet bound, Lee was encouraged to pursue education and independence. Her father ensured she learned about Chinese culture and language while also supporting her education in public schools in New York, where she was the only Chinese student in her graduating classes. This upbringing, along with her parents' unwavering support, helped Lee become a trailblazer for Chinese-American women in advocating for equality and justice.