Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. Former Vice President Mike Pence speaks during an event. 2023 Center for Strategic & International Studies. Chart. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. 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. (2021, September 2). This also reduces the purchasing power of Chinese earners. 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. Data cover both foreign-owned (29.1 million acres) and U.S. Center for Strategic and International Studies Douglas R. Bush, Deterring a Cross-Strait Conflict: Beijing's Assessment of Evolving U.S. Strategy, Rethinking Humanitarian Aid: A Conversation with Michelle Nunn, President and CEO of CARE USA, Foreign Purchases of U.S. 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. CSIS does not take specific policy positions. If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Along similar lines, climate-related efforts to increase biofuel production and expand afforestation and reforestation could reduce the amount of land available for food production in the future. Definition and Impact. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The . ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. As a presidential candidate in 2019, Warren said she would support a national version of Iowas law along with safeguards against foreign investors using fake American buyers to circumvent the rules. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. 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. You only have access to basic statistics. They use different business structures to further conceal it.. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. China's low-cost competitive strategy seems to be working. 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. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. Greed Is Good or Is It? Appliances (technology), IBMP.C. This acquisition put two Chinese directors on Hilton's Board of 10. "How Much U.S. Debt Does China Really Own?" China, which owns an estimated $972 billion in U.S. Treasuries, is the number-two investor among foreign governments, according to the August 2022 figures released by the U.S. Treasury. Citing national security concerns, the House Appropriations Committee included an amendment in the recent Department of Agriculture-Food and Drug Administration spending bill that prohibits the purchase of agricultural land located in the United States by Chinese-owned companies. 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. Given the state of the AFIDA data, it seems it is doing neither. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. "Major Foreign Holders of Treasury Securities. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. In return, American consumers get cheap Chinese products and incoming investment capital. 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. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). 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. National Association of Realtors. Of that, 195,000 acres, worth almost $2 billion when purchased, are. The manufacturing of smartphones and other household items is heavily reliant on China, which controls most of the rare earth minerals that make those items work. The remaining 38 percent is held by entities from almost a hundred other countries. and Caitlin Welsh. Across the country, the 2013 purchase of Smithfield Foods by the Chinese firm Shuanghui, now called WH Group, received national attention and escalated concerns about Chinese intervention in U.S. food systems. What US companies are now owned by China? US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. Sean Rayford/Getty Images, America cannot allow China to control our food supply, Pence said Wednesday during a speech at the conservative Heritage Foundation, urging President Joe Biden and Congress to end all farm subsidies for land owned by foreign nationals.. (Other Hollywood companies are partly or wholly owned by Chinese interests We know that education is one of the most common reasons that Chinese families purchase real estate in the US, he said. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. The American Security Institute recently released a report and launched a campaign, featuring a billboard in Times Square, to draw further attention to the extensive array of sectors the Chinese government and its partners have invested into. 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.. The post, which has been shared over 256,000 times as of April 14, is headlined with "read this before buying meat." "The hogs will still be raised here, but slaughtered and packaged for . China holds more than $1 trillion of the U.S. national debt. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. Nations borrowing from each other may be as old as the concept of money. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . Federal Reserve Bank of St. Louis. Citing staff shortages, the Department of Agriculture didnt penalize foreign parties for violating reporting rules from 2015 to 2018, prompting 28 lawmakers to criticize the departments complete lack of accountability and oversight Monday in a letter obtained by the Wall Street Journal. [Online]. Although Congress has become increasingly concerned about Chinese land purchases, investors from China currently own only a small fraction of this land, at 191,652 acres (0.05 percent of the total). From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. Congress can then increase the federal spending that spurs U.S. economic growth. "Debt Position and Activity Report, June 2022," Page 1. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Mutual Fund and ETF data provided by Refinitiv Lipper. Foreign-owned land accounts for about 2.7% of all U.S. farmland and forest land, which, according to the Department of Agriculture, is about 897 million acres. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. to incorporate the statistic into your presentation at any time. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. National Debt or Federal Deficit? Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. 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. But, exactly how much does the nation own? To do that, China had to loosen its peg to the dollar. Powered and implemented by FactSet Digital Solutions. US Navy laments China's shipbuilding supremacy February 27, 2023; US dangles F-35 to lure India away from Russia February 27, 2023; Ukraine marks the future of remote-control war February 23, 2023; China's 'phantom space strike' made to spoof US defenses February 23, 2023; US secretly amassing killer drone swarms to repel China February . Missouri had formerly banned all foreign ownership of agricultural land in the state, but one week before Shuanghui took over Smithfield, that rule changed to allow foreign entities to own up to 1 percent of the states farmland. The economy of China is driven by manufacturing and exporting. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. On Friday, Starwood Hotels agreed to be acquired by Anbang, a Chinese insurance company that is rapidly buying up U.S. hotels, for over $13 billion . That's when the U.S. Department of the Treasury changed how it measures the debt. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. "The Chinese have a strong foothold here in the U.S., and Chinese firms have access to what seems like infinite government lending, and because the country's goal of world dominance is ingrained into the minds of their business leaders," explained Paul Murad, president of Nevada-based real estate firm Metroplex. Learn more about how Statista can support your business. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. From 2016, the estimates include only residential transactions. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. It could be bigger," he surmised. Chinas demand for Treasurys helps keep U.S. interest rates low. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." "Report on Foreign Portfolio Holdings of U.S. "Frequently Asked Questions About the Public Debt. Consequences of Owing Debt to the Chinese, Government Bond: What It Is, Types, Pros and Cons, Repurchase Agreement (Repo): Definition, Examples, and Risks, U.S. Debt Ceiling: Definition, History, Pros, Cons, Clashes, Debt-to-GDP Ratio: Formula and What It Can Tell You, Major Foreign Holders of Treasury Securities, Debt Position and Activity Report, June 2017, Debt Position and Activity Report, June 2022, Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill, Frequently Asked Questions About the Public Debt, China's Gold Market: Progress and Prospects, Federal Debt Held by Federal Reserve Banks. 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. Before June 2010, Treasury reports showed that China held about $843 billion in debt. That's a decline of. Agricultural Land. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. While their market shares may be different percentages (Amazon owns 39% of all US ecommerce sales, while Alibaba owns 58.2% of all retail ecommerce shares in China), they each dominate their respective countries in which they began. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. These are accounts dedicated to Social Security, Medicare, and other entitlements. How many times does Coca Cola pay dividends? Forbes. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. The deal meant that WH Group now owns the largest pork producer in the United States as well as over 146,000 acres of Missouri farmland. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. Quotes displayed in real-time or delayed by at least 15 minutes. U.S . Amanda Jackson has expertise in personal finance, investing, and social services. Here's a quick and fascinating breakdown by total. 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. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. The last significant increase in acres occurred between 2012 and 2013 . 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. Use Ask Statista Research Service. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. Market data provided by Factset. "How Much U.S. Debt Does China Really Own?" Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. 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. 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. "Major Foreign Holders of Treasury Securities.". China acquired another 32,000 U.S. agricultural acres in 2021not as much as they scooped up in 2020, but 98% higher than their combined growth between 2015 and 2019. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. Alibaba handles more business than any other e-commerce company. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. World Gold Council. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. The resulting loss of export business would lead to a major unemployment crisis in China. It is responsible for lower interest rates and cheap consumer goods. China has the second-greatest amount of U.S. debt held by a foreign country. Additionally, Walmart has never owned Dollar Tree and has no plans to acquire the business. Its economy grew more than 10% for the three decades before the 2008 recession. 18, far behind No. China held 1.1 trillion U.S. dollars in U.S. securities. 1 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. The United States owes China approximately $980.8 billion as of May 2022. 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. You can only download this statistic as a Premium user. Stephen Gandel. Walmart does not own Dollar Tree as of 2022. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. Milos Maricic, an international affairs expert and World Economic Forum contributor, concurred that while China owns close to $150 billion in U.S. companies not particularly huge in comparison to the U.S. economy there is a lot about the available figure that we simply do not know. or redistributed. Disney is in no way owned by Chinese interests in terms of shareholders. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. In the wake of Covid-19 supply chain disruptions and escalating tensions with China, U.S. lawmakers have specifically increased scrutiny of purchases by Chinese investors. 2021 by the Center for Strategic and International Studies. July 20, 2021 Ryan Morgan U.S. lawmakers are acting with increased concern as Chinese purchasers are buying tens of thousands of acres of U.S. farmland. The value will change whenever China trades Treasury securities or when the prices of those bonds change. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. Get full access to all features within our Business Solutions. Second, the Chinese rely on American markets to buy Chinese-produced goods. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. ", United States Department of Treasury. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. Countries with lower currency values export more, since their products cost less when sold in foreign countries. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. U.S. consumers benefit from low consumer prices. How do I know if my stimulus was deposited? 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. As a Premium user you get access to background information and details about the release of this statistic. That data also shows that the. Its a massive undertaking to verify who really owns [the land], Maxwell said. As a result, the public does not have a complete picture of which foreign entities own how much U.S. farmland or what the land is being used for. "We 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. "GDP Growth (Annual %) - Japan, China.". Land grabbingwhen a government, company, or other entity purchases large swathes of land in another countrycan affect local land rights and agricultural production, sometimes putting local food security at risk. The current trend in the U.S. is leading us toward the creation of a Chinese-owned agricultural land monopoly, Rep. Dan Newhouse (R-Wash.) warned during a recent House Appropriations hearing. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. Mexico has gone from 38% to 42%. The extent of Chinese investment in recent years has also raised red flags around U.S. national security, particularly in the realm of rare earth minerals. 2 Which Country Owes the Most Money to China? This compensation may impact how and where listings appear. That changed with the USMCA. 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. Most countries want their currency values to fall so they can win global currency wars. For example, the huge amount of debt that the U.S. government owes Chinese lenders has been the subject of countless debates, headline news stories, and political platforms for decades. Q2: What threats do foreign acquisitions of U.S. farmland pose? Amazon founder Jeff Bezos comes in at No. A paid subscription is required for full access. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. This helps China hold down the cost of its exported goods, which tends to make China, like any nation, a stronger performer in international trade. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. As of the start of 2020, Chinese investors owned about 192,000 acres of U.S. agricultural land valued at about $1.9 billion, according to Politico. by Jamie Lutz Since this strategy is dependent on exportsover $ 452.58 billion of which went to the U.S. in 2020China needs ever-more renminbi to continue to have a lower currency exchange rate than the U.S. dollar, and thus offer cheaper prices for the products it exports. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. All rights reserved. In 2011, the total U.S. debt stood at $14.3 trillion. Other foreign holders included oil-exporting countries and Caribbean banking centers. Canadian investors hold the largest share of this land, at 29 percent, with the Netherlands, Italy, Germany, and the United Kingdom collectively owning another 33 percent. China is also responding to accusations of manipulation. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. Is Americas Debt to China Really So Bad? In, National Association of Realtors. Outward FDI stock share of state-owned and private enterprises in China 2011-2021 FDI outflows from Chinese central enterprises in non-financial sectors 2011-2021 Value of Chinese FDI flows to the . Jamie Lutzisaresearchassociatewiththe Global Food Security Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Caitlin Welsh is the director of the CSIS Global Food Security Program. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. Statista. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). 5. How Did the U.S. National Debt Get So Big? SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. Securities. "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. Then you can access your favorite statistics via the star in the header. Currently, you are using a shared account. Her modest, two-story white farmhouse has . Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. U.S.-based companies also own over nine million acres in other countries. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. Mutual Fund and ETF data provided by Refinitiv Lipper. That makes Chinese exports cheaper than American-made goods, increasing sales. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. "China's Gold Market: Progress and Prospects," Page 2. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Quotes displayed in real-time or delayed by at least 15 minutes. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013.
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