Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. US National Debt Clock: How Its Warning Affects You. Legal Statement. The Pentagon released a list of 20 companies that it says are owned or controlled by Communist China's military and operate in the US - including tech giant Huawei, according to a report. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. National Association of Realtors. According to the U.S. Census Bureau, the U.S. has been suffering from a significant trade deficit with China since 1985, meaning that the U.S. buys more goods and services from China than China buys from the U.S. Chinese exporters receive U.S. dollars for their goods sold to the U.S. Nonagricultural land (such as homesteads and roads) accounted for 2%. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. For example, foreign investors can set up limited liability companies in the U.S. and designate an American owner to circumvent the reporting requirements while still controlling the operation behind the scenes, said Joe Maxwell, president of the progressive advocacy group Family Farm Action. Countries Who Own The Most Acres U.S. And while the U.S. grants China permission to buy its companies, China does not allow U.S. companies to operate the same way on their soil. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Q5: What is the real threat to U.S. food security? Chinas demand for Treasurys helps keep U.S. interest rates low. Show publisher information 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 . 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. Currently, you are using a shared account. It receives these dollars from Chinese companies that receive them as payments for their exports. 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. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. China held 1.1 trillion U.S. dollars in U.S. securities. Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. The United States currently produces more than enough food per capita, even after adjusting for food waste. 4356 (117)) that would block any new agricultural purchases by companies that are wholly or partly controlled by the Chinese government and bar Chinese-owned farms from tapping federal support programs. See Media Page for more interview, contact, and citation details. 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. "Debt to the Penny. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. What's the Difference? Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. How can I increase my credit score by 25 points? Christmas in Mainland China is not a public holiday and is not related to religion at all. Since 2016, a company owned by Xinjiang-based real estate tycoon Sun Guangxin had spent an estimated $110 million buying up land in Texas' Val Verde County. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. Mutual Fund and ETF data provided by Refinitiv Lipper. These are accounts dedicated to Social Security, Medicare, and other entitlements. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. As its exports decline, China is less able to invest in U.S. Treasurys. The PBOC can print renminbi as needed. 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. These include white papers, government data, original reporting, and interviews with industry experts. Are you interested in testing our business solutions? As of 2019, a total of 191,000 acres of American land were owned by China. The renewed focus on curbing foreign farm purchases comes as Biden and Agriculture Secretary Tom Vilsack roll out a series of actions to bolster the food supply chain, following major disruptions caused by the pandemic. Disney is in no way owned by Chinese interests in terms of shareholders. Of that, 195,000 acres, worth almost $2 billion when purchased, are. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. ), after gaining momentum seeded in farm states. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. In Texas, a Chinese based energy company purchased more than 130,000 acres of land near Laughlin Air Force Base and is now attempting to build a wind farm to access the U.S. power grid. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. ", Total number of residential properties bought by Canadian buyers in the U.S. 2010-22, Total property sales to foreign buyers in the U.S. 2010-2022, Share of Indian buyers of residential property in the U.S. 2011-2022, Total number of residential properties purchased by Indian buyers in the U.S. 2010-22. ", The World Bank. Q3: What regulations are currently in place? 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). U.S. Debt to China: How Much Is It, and Why? "Debt Position and Activity Report, June 2022," Page 1. 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. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. 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. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. [Online]. It amounted to about 192,000 of the. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. "Major Foreign Holders of Treasury Securities [2000-2020]. 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. Its a massive undertaking to verify who really owns [the land], Maxwell said. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. 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.. With the U.S. dollar considered one of the safest and most stable currencies in the world, dollar-pegging helps the Chinese government maintain the stability and value of the yuan. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Powered and implemented by FactSet Digital Solutions. by Jamie Lutz China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. ", The World Bank. Even if these bills had passed, they would have strengthened oversight on purchases of U.S. companies, not agricultural land specifically, leaving most land acquisitions unregulated. This is just a small part of the 30 . "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. 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. To use individual functions (e.g., mark statistics as favourites, set Greed Is Good or Is It? Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. "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. July 18, 2022. Investopedia does not include all offers available in the marketplace. U.S. Department of the Treasury. Anyone can buy U.S. debt. Market data provided by Factset. Agricultural Land. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. 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. That figure was$30.5trillion as of June 30, 2022. 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. What US companies are now owned by China? The . 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. Appliances (technology), IBMP.C. This Treasury-led change makes it difficult to make long-term comparisons. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. "GDP Growth (Annual %) - China. 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. Then you can access your favorite statistics via the star in the header. Countries with lower currency values export more, since their products cost less when sold in foreign countries. Japanese-owned debt doesn't receive nearly as much negative attention as Chinese-owned debt, ostensibly because Japan is seen as a friendlier nation and the Japanese economy hasn't grown as fast as China's year after year. Representative Grace Meng expressed concern that the amendment could fuel already rising anti-Asian hate, and the USDA and advocacy groups have pointed out that the USDA does not have the authority to intervene in private land deals. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. It is responsible for lower interest rates and cheap consumer goods. Crops beings harvested on an Iowa farm in 2018, Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases, North Dakota Turns Against Chinese Corn Mill Project. 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$. (ChinaOwnsUs campaign). Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. 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. This compensation may impact how and where listings appear. 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. 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). World Gold Council. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. The money flowing into agricultural real estate from other countries also makes it difficult for new farmers in the U.S. to afford land as outside buyers bid up prices. (2022). Subsequently, China and other international players would be obligated to accede to an audit that can be reviewed by the nonprofit Public Company Accounting Oversight Board, which oversees audits of all U.S. companies that endeavor to raise money in public markets. 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. Federal Reserve Bank of St. Louis. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. 2 Which Country Owes the Most Money to China? 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 . What Would Happen if China Were to Call In Its Debt? 2023 FOX News Network, LLC. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. A4: Since the 2013 purchase of Smithfield Foods, multiple bills have been proposed to provide more oversight of foreign investments in U.S. agricultural companies (including in 2017 and 2020), but until recently they each died in committee. A government bond is issued by a government at the federal, state, or local level to raise debt capital. 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). The National Young Farmers Coalition (NYFC) anticipates that two-thirds of farmland will change hands over the next decade as farmers retire, meaning that more land could become available for foreign purchase. No, China does not own Walmart. 1616 Rhode Island Avenue, NW Gates is No. A5: Land grabbing is more of an immediate threat to food security in other parts of the world than it is in the United States, but it could become a greater threat in the future if more farmland is sold and if foreign investors continue to buy available farmland. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. While around 3.2% of the national debt isn't exactly insignificant, the Treasury Department has had no problems finding buyers for its products even after a rating downgrade. This helps inflate the value of the dollar. 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). Every year since 2010, China has held more than $1 trillion in U.S. debt. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. China's Large Position in U.S. Treasuries. In addition to federal action, some states, like Arizona, could do more to protect their local resources and communities from exploitation by domestic and foreign entities. In 2019, 49 percent of reported foreign-held acreage in the United States was forest land, while 25 percent was crop land, 24 percent was for pasture and other agricultural uses, and 2 percent was for non-agricultural uses (such as homesteads and roads). That changed with the USMCA. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. As it is not known exactly how much US land is owned by China. That makes Chinese exports cheaper than American-made goods, increasing sales. 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. This amount is subject to market fluctuations. The data is entirely reliant on self-reporting, and the USDA does not check it for completeness and accuracy, so there are frequent typos, omissions, and outdated information. 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. Historically, between 20,000 and 40,000 residential properties were bought by. The last significant increase in acres occurred between 2012 and 2013 . This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. Here's a quick and fascinating breakdown by total. "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. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. Owning U.S. Treasury notes helps China's economy grow. On the state level, regulations vary. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. and Caitlin Welsh. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. 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. How much do banks charge to manage a trust? According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. In, National Association of Realtors. How Did the U.S. National Debt Get So Big? "How Much U.S. Debt Does China Really Own?" Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). This also reduces the purchasing power of Chinese earners. "Debt Position and Activity Report, June 2017," Page 1. Additionally, China is seeking to build 5G networks in the United States and other Western countries, which could potentially feed personal information and sensitive data to the Chinese Communist Party. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). The Chinese government uses U.S. dollars it has on hand to buy Treasurys. Forbes. That data also shows that the. How much of the U.S. land does China own? 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. TreasuryDirect. In 2019, it grew at 6.1%, an even more sustainable rate. Second, the Chinese rely on American markets to buy Chinese-produced goods. 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. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. China does not publish the figures on its international lending. The buying gorge went from April 2021 to March 2022 and . That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Use Ask Statista Research Service. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. 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 House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. If you are an admin, please authenticate by logging in again. The products are still made in the USA, but the decisions are made in China. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. China produces 97 percent of U.S. antibiotics and about 80 percent of active pharmaceutical ingredients used in American drugs, giving the Chinese Communist Party absolute control of. This series of events prompted Congress to look at how to prevent Chinese ownership in U.S. agriculture, even though other foreign entities, like Brazilian-owned JBS, control similarly large portions of U.S. food supply chains. 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. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. | When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. China has the second-greatest amount of U.S. debt held by a foreign country. Billions of dollars flow into the U.S. from China every year. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. 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. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. In 2017, the United States imported $4.6 billion in agricultural goods from China, which is also responsible for much of the global supply of soy and pea proteins that are found in nutritional supplements and synthetic meats. Nations borrowing from each other may be as old as the concept of money. China also became the world's biggest exporter in 2009. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. In 2011, the total U.S. debt stood at $14.3 trillion. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. 1 While Japans 4.8% ownership of the U.S. debt is only slightly less than Chinas 5.3%, the Japanese-owned debt is rarely depicted in a negative light, as is Chinas. Is Americas Debt to China Really So Bad? 2021 by the Center for Strategic and International Studies.