All Rights Reserved. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. A2: On a large scale, these acquisitions do not represent a substantial enough portion of food production in the United States to threaten national food security. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. ", United States Department of Treasury. China holds more than $1 trillion of the U.S. national debt. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. Greed Is Good or Is It? TreasuryDirect. For example, critics say that should the Chinese government suddenly call indemand immediate repaymentof all of the U.S. governments obligations, the American economy would be hopelessly crippled. Treasury securities are freely traded around the world. Given the state of the AFIDA data, it seems it is doing neither. If you are an admin, please authenticate by logging in again. While some states have strict laws in place, others are more open to foreign investments. In 2011, the total U.S. debt stood at $14.3 trillion. You need at least a Starter Account to use this feature. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. So, Lowes operates independently of Walmart. White House National Security Advisor Jake Sullivan said in a statement that the United States welcomes the commitments of Israel and the Palestinian Authority to reduce tensions and prevent further violence. According to the Federal Reserve and U.S. Department of the Treasury, foreign countries held a total of 7.03 trillion U.S. dollars in U.S. Treasury securities as of March 2021. Washington, DC 20036. Dalian Wanda purchased a majority stake in AMC for $2.6 billion, making AMC the largest theater operator at the time, according to a report from Reuters. It was revealed that just last year alone, China spent $6.1 billion dollars on housing in the U.S. making it America's top foreign buyer. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Is it better to pay off credit card or pay down? The greatest share is in Texas, with over 4.4 million acres, followed by Maine (3.3 million acres) and Alabama (1.8 million acres). Get full access to all features within our Business Solutions. Concern about Chinese purchases of U.S. agricultural land increased in late January when the China-based Fufeng Group Ltd. was prevented from building a cornmill on land close to a North Dakota Air Force base after officials called it a security risk. It is responsible for lower interest rates and cheap consumer goods. The Chinese Investor owns about 14% of Snapchat's shares. How Much U.S. Debt Does China Own? - Investopedia However, the US government estimates that Chinese-owned entities own approximately 7,000 acres of land in the US, which is a small fraction of the 2. . "Major Foreign Holders of Treasury Securities.". Market data provided by Factset. It is not only foreign companies who take advantage of this regulatory loophole, howevercompanies from other states and cities around the United States are also buying up land in Arizona to take advantage of the states loose water regulations, putting Arizonas long-term water resources at risk. "The first priority is to reclaim our critical supply chains so that we can become self-secure instead of reliant on the Chinese government,"Will Coggin, managing director of the American Security Institute, told Fox News. The Communist Party has actively supported investments in foreign agriculture as part of its One Belt One Road economic development plans, aiming to control a greater piece of Chinas food supply chain. 2023 FOX News Network, LLC. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Before June 2010, Treasury reports showed that China held about $843 billion in debt. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. "Under President Trump, the U.S. was the first to recognize their nonstop deceits, and now the rest of the world has a clearer picture of China's ambition. Mutual Fund and ETF data provided by Refinitiv Lipper. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. This Treasury-led change makes it difficult to make long-term comparisons. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. Definition and Impact. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. Powered and implemented by FactSet Digital Solutions. (Smithfield said in a later statement pertaining to their ownership structure that they are "a U.S. company that provides more than 40,000 American jobs and partners with thousands of American farmers. China is taking steps to make its currency, the yuan, transition to a global currency. Two bills introduced in the House of Representatives and the Senate argue foreign influence on American agricultural land could affect Americas economy, food supply, and national security. Newt says China will 'dominate world' if tech theft isn't stopped, 'it's a matter of life and death', share data with Chinese communist spy agencies. Contractionary Monetary Policy. This compensation may impact how and where listings appear. Advocacy groups like the National Family Farm Coalition argue that the larger threat to national security is corporate capture of U.S. land resources, whether those corporations are U.S.- or foreign-owned. The FARMForeign Adversary Risk Managementact, introduced in the House of Representatives and the Senate on January 25, would trigger a Department of Agriculture and Government Accountability Office investigation into foreign influence on Americas agriculture industry. The call for tighter limits on who owns Americas farms has come from a wide range of political leaders, from former Vice President Mike Pence to Sen. Elizabeth Warren (D-Mass. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? China also is liberalizing its control of the yuan, also called the "renminbi." Owning U.S. Treasury notes helps China's economy grow. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). It buys available excess U.S. dollars from the exporters and gives them the required renminbi. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. To use individual functions (e.g., mark statistics as favourites, set The resulting loss of export business would lead to a major unemployment crisis in China. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. Longley, Robert. Some U.S. lawmakers are pushing back amid the coronavirus fallout, which ignited an initial panic over concerns of critical medical shortages and Beijing's threats to withhold the needed goods. That made the yuan more attractive to forex traders in global markets. In, National Association of Realtors. (ChinaOwnsUs campaign). While many politicians like to angrily proclaim that China owns the United States because it owns so much of the U.S. debt, economists say that claim is far more rhetoric than fact. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. Are chinese companies state owned? ", The World Bank. Powered and implemented by FactSet Digital Solutions. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. 04 Mar 2023 03:14:21 Conspiracy theorists suggested Gates was buying up millions of acres of U.S. farmland for nefarious reasons, according to the fact-checking service Snopes, with some claiming that Gates owned 80% of all U.S. farmland. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. Are you interested in testing our business solutions? China needs this growth to raise its low standard of living. How much of Chinese industry is state-owned? Foreign ownership of U.S. agricultural land doubled from 2009 to 2019, according to U.S. Department of Agriculture (USDA) records, and policymakers have become increasingly concerned about foreign control of the U.S. food supply. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases (WSJ), North Dakota Turns Against Chinese Corn Mill Project (WSJ). Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. The debate over farm ownership comes amid broader efforts by Congress and the Biden administration to curb the nations economic reliance on China, especially in key industries like food, semiconductors and minerals deemed crucial to the supply chain. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. The value will change whenever China trades Treasury securities or when the prices of those bonds change. China does not publish the figures on its international lending. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. Angela Huffman is a sixth-generation farmer in Wyandot County, which, along with Paulding County, has more than 41,000 acres of foreign-owned farmland. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? If the Chinese suddenly decided to call in all of the federal government's obligations (which isn't possible, given the maturities of debt securities), others would likely step in to service the market. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. ", Harvard Business Review. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. "GDP Growth (Annual %) - Japan, China.". That makes Chinese exports cheaper than American-made goods, increasing sales. Congressional Research Service. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. And Human Rights Watch has written that China is an'existential threat' to human rights." | ", U.S. Department of the Treasury. The NYFC also points to both urban and rural development as a threat to the future of U.S. farms, since converting farmland to other uses drives up prices and makes the land unaffordable for beginning farmers. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). That effort includes greater scrutiny of large meat processing companies like JBS and Smithfield, as well as plans to tighten the requirements for meat to be labeled a Product of the USA.. "Chinese companies have been carrying out unchecked reverse mergers for years now, and the media (influence) has been going under the radar for years now," Murad added. Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. Most of the rest of the U.S. debt is owned by individual investors, corporations and other public entitiesincluding foreign creditors like the Chinese government. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. Foreign-owned land accounts for about 2.7% of all U.S. farmland and forest land, which, according to the Department of Agriculture, is about 897 million acres. It could be bigger," he surmised. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The government now provides affordable housing by subsidizing commercial housing purchases or by offering low-rent public (social) housing to middle- and low-income families. Stoves, refrigerators, washers and dryers from General Electric have been around for more than 100 years, but starting last year, the appliance division of the iconic company has been Chinese. "China's Currency Policy," Page 1. The United States owes China approximately $980.8 billion as of May 2022. Citing the nonpartisan economic think-tank Paulson Institute, the American Security Institutereport underscores that "Chinese firms and investors own a controlling majority in nearly 2,400 U.S. Research Associate, Global Food Security Program. China's economy would suffer along with everyone else's. It receives these dollars from Chinese companies that receive them as payments for their exports. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. Many Americans find the brand appealing because it has a "Made in America" stamp on its products, however, the company has been owned by Chinese company Haier since 2016. Access to this and all other statistics on 80,000 topics from, Show sources information How Much U.S. Farmland Does China Really Own? More Than Bill GatesAnd Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. The push to drain Chinas influence from the U.S. economy has reached Americas farm country, as congressional lawmakers from both parties are looking at measures to crack down on foreign purchases of prime agricultural real estate. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. Christmas in Mainland China is not a public holiday and is not related to religion at all. This is just a small part of the 30 . Definition and Analysis, What Is National Debt and Where It Fits Within the Economy, Alexander Hamilton and the National Economy, The History of US Government Financial Bailouts, What Was the Open Door Policy in China? The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. The . As it is not known exactly how much US land is owned by China. Japan held 1.24 trillion U.S. dollars. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Foreign-owned land accounts for about 2.7% of all U.S. farmland and forest land, which, according to the Department of Agriculture, is about 897 million acres. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. China has the second-greatest amount of U.S. debt held by a foreign country. Times Square billboard endeavors to warn of creeping Chinese influence. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. How much do banks charge to manage a trust? Interest on the National Debt and How It Affects You, US Debt by President: By Dollar and Percentage, US Budget Deficit by Year Compared to GDP, the National Debt, and Events, Chinas Economic Slowdown and How It Affects You, China's Economy and Its Effect on the U.S. Economy, China's Currency, the Yuan, and How It Affects You, How the Yuan Could Become a Global Currency, Debt Ceiling Dictionary: Your Guide to the Jargon, Major Foreign Holders of Treasury Securities, Report on Foreign Portfolio Holdings of U.S. Securities, Major Foreign Holders of Treasury Securities [2000-2020], Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. Then you can access your favorite statistics via the star in the header. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. Please do not hesitate to contact me. U.S. consumers benefit from low consumer prices. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. China's economic growth has slowed over the years. statistic alerts) please log in with your personal account. The US National Debt and How It Affects You. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. "Report on Foreign Portfolio Holdings of U.S. From 2016, the estimates include only residential transactions. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. You can learn more about the standards we follow in producing accurate, unbiased content in our. Mutual Fund and ETF data provided by Refinitiv Lipper. In a vicious cycle, they sell the U.S. dollars they receive through exports to get renminbi, which increases the supply of U.S. dollars and raises the demand for renminbi, to the point that the renminbi ranked as the eighth most traded currency in the world as of 2019. Mexico has gone from 38% to 42%. The other countries that hold the most U.S. debt include the U.K., with $634 billion owed; Switzerland, holding $294.1 billion in debt securities; and the Cayman Islands, slightly behind Switzerland with $293.2 billion of the United States' debt. What Would Happen if China Were to Call In Its Debt? division (technology), Legendary Entertainment Group (entertainment), Motorola Mobility (technology), Nexteer Automotive (automotive), Riot Games (entertainment), Smithfield Foods (food), Teledyne Continental Motors and Mattituck Services (aerospace), Terex Corp. (machinery), Triple H Coal (mining), Zonare Medical Systems (health care). No, China does not own Walmart. What is the highest credit limit for Chase Sapphire? The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. That data also shows that the. Why Is China Buying U.S. Farmland? Security Concerns, Explained As of the end of November, China owned US$1.063 trillion of the total outstanding US government debt issued by the US Department of the Treasury. So, in part, Chinese demand for American property is a sign of their desire to give their children the best opportunities to have a successful future.. How Much U.S. Debt Does China Own? - The Balance Control of 8,000-plus of American theater screens and other media platforms allows China to project "soft power" and block unflattering depictions of the Chinese government from being presented, both in terms of creative production and mass distribution. Of the 109 countries that own U.S. agricultural land, China ranks No. ", The World Bank. Smithfield is vertically integrated and owns all aspects of its supply chain, meaning that WH Group now controls a significant portion of U.S. pork production and revenue in addition to farmland. First, because U.S. securities like Treasury bills come with varying maturity dates, it would be impossible for the Chinese to call them all in at the same time. by Jamie Lutz What US companies are now owned by China? It allows the U.S. Treasury to borrow more at low rates. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM The ideal entry-level account for individual users. This helps inflate the value of the dollar. New Data Shows U.S. Companies Are Definitely Leaving China - Forbes China owns roughly $1.08 trillion worth of U.S. debt. In return, American consumers get cheap Chinese products and incoming investment capital. Statista. The measure is expected to reach the House floor before the end of July, as part of a broader appropriations package, although the Senate has not yet drafted its own version of the spending bill. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. Biden thanks King of Jordan for "historic meeting" in Aqaba and "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. The quick answer is that as of January 2018, the Chinese owned $1.17 trillion of U.S. debt or about 19% of the total $6.26 trillion in Treasury bills, notes, and bonds held by foreign countries. Its also a small percentage of the nearly 900 million acres of total American farmland. The top two foreign holders of U.S. debt are Japan and China. As of 2019, a total of 191,000 acres of American land were owned by China. Congress can then increase the federal spending that spurs U.S. economic growth. Learn more about how Statista can support your business. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. Disney is in no way owned by Chinese interests in terms of shareholders. According to the data, the value of foreign-owned American assets climbed to $32.5 trillion in the second quarter, while total foreign assets held by. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Walmart does not own Dollar Tree as of 2022. China has become one of the largest economies in the world. The PBOC can print renminbi as needed. ThoughtCo. Agricultural Land: Facts, Figures, and an Assessment of Real Threats, Brzezinski Chair in Global Security and Geostrategy, Diversity and Leadership in International Affairs Project, Energy Security and Climate Change Program, Media Relations Manager, External Relations. Data cover both foreign-owned (29.1 million acres) and U.S. | Photo by Nathan Howard/Getty Images. Q2: What threats do foreign acquisitions of U.S. farmland pose? U.S. direct investments in China 2000-2021 | Statista That changed with the USMCA. China held 1.1 trillion U.S. dollars in U.S. securities. Show publisher information According to USDA data, foreign investors owned at least 35.2 million acres of U.S. agricultural land in 20192.7 percent of U.S. farmland, an area almost the size of Iowa. That figure was$30.5trillion as of June 30, 2022. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. As a Premium user you get access to background information and details about the release of this statistic. Foreign Ownership and Holdings of U.S. Agricultural Land She is a library professional, transcriptionist, editor, and fact-checker. Alibaba handles more business than any other e-commerce company. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. By artificially keeping the value of the yuan down, the government reduces the buying power of the Chinese middle class, thus making the sale of exports vital keeping the countrys economy moving. How Much U.S. Debt Does China Really Own? - ThoughtCo The reality is very different than the rhetoric. Despite holding little U.S. land, China remains focus of foreign Critics claim that the rule change was instrumental in allowing the deal to go through as written, and some members of Congress warned of Chinese government involvement in the purchase. "How Much U.S. Debt Does China Really Own?" That would hurt China's competitiveness by raising the yuans value relative to the dollar. In addition, many economists contend that the reported U.S. debt should include at least another $120 trillion in unfunded future liabilitiesmoney the government does not currently have but is legally obligated to pay people in the future. The buying gorge went from April 2021 to March 2022 and . While a large portion of Smithfield pork was already being exported to China prior to the acquisition, the Covid-19 crisis raised concerns about Chinese control of U.S. food supply chains. U.S. Debt to China: How Much Is It, and Why? - The Balance 2021 by the Center for Strategic and International Studies. On the state level, regulations vary. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. "Major Foreign Holders of Treasury Securities [2000-2020]. In 2019, it grew at 6.1%, an even more sustainable rate. Gates is No. This also reduces the purchasing power of Chinese earners. Its economy grew more than 10% for the three decades before the 2008 recession. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. Most states, like Texas and Maine, have no restrictions on foreign ownership of land, contributing to the large amount of farmland that is under foreign control in these states. The economy of China is driven by manufacturing and exporting. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. These are especially vital not only for high-technology products such as smartphones and electric vehicles but for U.S. frontline weapons including the F-35 fighter, which requires 920 pounds of rare earth minerals. By the start of 2020, Chinese owners controlled about 192,000 agricultural acres in the U.S., worth $1.9 billion, including land used for farming, ranching and forestry, according to the Agriculture Department. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. Legal Statement. American Companies You Didn't Know Were Owned By Chinese Investors More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. "In 2017, the United States produced zero rare earth minerals. But, exactly how much does the nation own? China's low-cost competitive strategy seems to be working. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. AMC. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). How can I increase my credit score by 25 points? U.S . This material may not be published, broadcast, rewritten, This is partly because Japan is seen as a much friendlier nation and because Japans economy has been growing more slowly than Chinas over the last several years. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States.
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