The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. 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. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. March 18, 2016, 2:10 PM. World Gold Council. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). The United States currently produces more than enough food per capita, even after adjusting for food waste. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. China is buying up American farms. Washington wants to crack - POLITICO 41 on The Land Reports 2022 list of Americans who own the most land. 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. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. 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. 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. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. How much of America do foreigners really own? - MarketWatch If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. The Biggest American Companies Now Owned by the Chinese - Yahoo! 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. All rights reserved. It has held up to $1.3 trillion of U.S. debt. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. 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. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. No, China does not own Walmart. The USDA could enforce the portion of the bill that bans Chinese-owned companies from participating in federal benefits programs, but constitutionally, land purchasing falls under states rights, and legislators have made no motions to change that. 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. Though the magazine named him the largest private farmland owner in January 2021, the Microsoft founder came under fire in early 2022 when he was briefly barred from purchasing 2,100 acres of North Dakota farmland. The US National Debt and How It Affects You. As a Premium user you get access to the detailed source references and background information about this statistic. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. 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. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. ", The World Bank. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. China also is liberalizing its control of the yuan, also called the "renminbi." These are accounts dedicated to Social Security, Medicare, and other entitlements. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. U.S. Department of the Treasury. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. Does paying off all debt increase credit score? This statistic is not included in your account. Manuel Balce Ceneta/AP Photo. What US companies are now owned by China? 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 is buying billions in US farmland and lawmakers are scrambling to Nord Stream explosions hard to cover up - asiatimes.com China does not publish the figures on its international lending. The United States owes China approximately $980.8 billion as of May 2022. ", Congress.gov. Walmart owns no shares. We also reference original research from other reputable publishers where appropriate. Show publisher information There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. 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. You need a Statista Account for unlimited access. Investopedia does not include all offers available in the marketplace. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. Q1: Where and why are foreign entities purchasing farmland in the United States? What Would Happen if China Were to Call In Its Debt? While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. 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. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. China holdings of U.S. debt fall below $1 trillion for the first time "In 2017, the United States produced zero rare earth minerals. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. Q2: What threats do foreign acquisitions of U.S. farmland pose? Policymakers should, instead, consider the many threats facing the future of the U.S. food system and ensure that current and aspiring farmers have the resources they need to secure long-term U.S. food production, starting with access to affordable farmland. Its a massive undertaking to verify who really owns [the land], Maxwell said. Gates is No. 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. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. 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. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. 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. How much of the United States does China really own? Amanda Jackson has expertise in personal finance, investing, and social services. Despite holding little U.S. land, China remains focus of foreign Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. How much of the U.S. land does China own? - FinanceBand.com 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 . China owns roughly $1.08 trillion worth of U.S. debt. or redistributed. What Is the Public Debt, and When Is It Too High? That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. Walmart is founded and owned by the Walton family. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. 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. That made the yuan more attractive to forex traders in global markets. "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. 2023 FOX News Network, LLC. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. How Much U.S. Debt Does China Really Own? - ThoughtCo Foreign Purchases of U.S. Agricultural Land: Facts, Figures, and an "Debt Position and Activity Report, June 2017," Page 1. How much do banks charge to manage a trust? That data also shows that the. Christmas in Mainland China is not a public holiday and is not related to religion at all. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. 1 Biden says China believes it will 'own America' within 15 years But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. Debt to the Penny., U.S. Department of the Treasury. How Did the U.S. National Debt Get So Big? U.S. direct investments in China 2000-2021 | Statista Alibaba handles more business than any other e-commerce company. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . "Federal Debt Held by Federal Reserve Banks. 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. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Stephen Gandel. A1: USDA records provide the best source of information on foreign-held agricultural land, although they are still incomplete and contain many errors (as explained in A3 below). (July 18, 2022). 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. Countries with lower currency values export more, since their products cost less when sold in foreign countries. Securities. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek Appliances (technology), IBMP.C. WH Groups shareholders include many large U.S.-based financial institutions.". As a Premium user you get access to background information and details about the release of this statistic. 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. | The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. Longley, Robert. 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. 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. Federal Reserve Bank of St. Louis. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. And Human Rights Watch has written that China is an'existential threat' to human rights." To use individual functions (e.g., mark statistics as favourites, set 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. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. How Hollywood Sold Out to China - The Atlantic Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. 2 Which Country Owes the Most Money to China? 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. The ideal entry-level account for individual users. statistic alerts) please log in with your personal account. 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. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. 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. This compensation may impact how and where listings appear. You can learn more about the standards we follow in producing accurate, unbiased content in our. Among all of those foreign creditors to which America owes money, China led the way at $1.17 trillion, followed by Japan, at $1.07 trillion as of January 2018. The United States owes China approximately $980.8 billion as of May 2022. The reality is very different than the rhetoric. China's economic growth has slowed over the years. 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. "GDP growth (Annual %) - China. China has steadily accumulated U.S. Treasury securities over the last few decades. Longley, Robert. China's state-directed industrial policy has outmaneuvered America's laissez-faire approach to securing access around the world to a metal that's taking on growing economic and strategic . "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. 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. David Schlessinger and I founded Five Below 16 years ago with a promise to build an amazing store for teens and pre-teens that offers trend-right, high-quality merchandise all at $5 or less, said Tom Vellios . China's position as the largest foreign holder of U.S. debt gives it some political leverage. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. 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. 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. ", United States Department of Treasury. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. In 2019, it grew at 6.1%, an even more sustainable rate. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. "GDP Growth (Annual %) - China. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. 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. As a major function of its monetary policy, China's central bank, the Peoples Bank of China (PBOC), actively works to prevent this imbalance between the U.S. dollar and renminbi in local markets. ", Harvard Business Review. China holds more than $1 trillion of the U.S. national debt. If you are an admin, please authenticate by logging in again. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. That makes Chinese exports cheaper than American-made goods, increasing sales. How America got outmaneuvered in a critical mining race How much US debt does China own and why is it important? Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. (2022). In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. 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. It amounted to about 192,000 of the. "Frequently Asked Questions About the Public Debt. According to sources, Time Magazine received $700,000, the Financial Times $371,577, Foreign Policy Magazine $291,000, the Los Angeles Times $272,000, and other notable media outlets received more than $1 million. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Owe China? Powered and implemented by FactSet Digital Solutions. How much of the U.S. land does China own? That figure was$30.5trillion as of June 30, 2022. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. For long-term U.S. food security, perhaps the larger concern is why up-and-coming U.S. farmers are unable to buy the land they need. U.S. consumers benefit from low consumer prices. "We It receives these dollars from Chinese companies that receive them as payments for their exports. How many times does Coca Cola pay dividends? TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. 2023 FOX News Network, LLC. Chinas demand for Treasurys helps keep U.S. interest rates low. Number of U.S. properties bought by Chinese 2022 | Statista Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Owning U.S. Treasury notes helps China's economy grow. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. 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. (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. 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. Discover the current debt ceiling and its economic impact. ThoughtCo. How Much Is the Per Capita Money Supply in the U.S.? Quotes displayed in real-time or delayed by at least 15 minutes. TreasuryDirect. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. 2021 by the Center for Strategic and International Studies. Why China Buys U.S. Debt With Treasury Bonds - Investopedia 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. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. 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. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Why China Buys U.S. Debt With Treasury Bonds, A Look at National Debt and Government Bonds, National Debt: Definition, Impact, Key Drivers, Current U.S. Debt, 2020 Election: The Key Economic Issues Explained. "Major Foreign Holders of Treasury Securities.". "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. 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 . ", National Association of Realtors, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 Statista, https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/ (last visited March 04, 2023), Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph], National Association of Realtors, July 18, 2022. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. What does China own in the U.S.? | CNBC Explains - YouTube Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. Walmart does not own Dollar Tree as of 2022. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. 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. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. Its also a small percentage of the nearly 900 million acres of total American farmland. 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. This amount is subject to market fluctuations. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. "General Government Gross Debt.". The hardware brand is a publicly-traded company that does not have a majority shareholder. 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. "Bretton Woods-GATT, 19411947.". China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. Former Vice President Mike Pence speaks during an event. The economy of China is driven by manufacturing and exporting. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. You only have access to basic statistics. "Major Foreign Holders of Treasury Securities. The first and most important is that China wants its currency, the yuan, pegged to the dollar. ", U.S. Department of the Treasury. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023).