Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. 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. AMC. 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. Statista. Scrutiny of foreign-owned agricultural operations receiving taxpayer subsidies has also been rising in recent years after meatpacking conglomerates like the U.S. subsidiary of Brazilian-owned JBS received millions of dollars under the Trump administrations trade bailout starting in 2018. Q2: What threats do foreign acquisitions of U.S. farmland pose? Q3: What regulations are currently in place? Legal Statement. 2 This amounts to more than 13% of the U.S. debt held overseas and about 3.2% of the United States' total debt load. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. This amount is subject to market fluctuations. Please do not hesitate to contact me. 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. 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. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. China does not publish the. In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. U.S. Department of the Treasury. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. More than 200 foreign firms mostly Chinese with a combined market capitalization of almost $2 trillion are said to not be meeting this standard; so their stocks are traded, but U.S. investors have limited insight into what is going on internally with the companies. 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. 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. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. 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. China owns roughly $1.08 trillion worth of U.S. debt. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. ", U.S. Department of the Treasury. The AFIDA requires foreign entities to report transactions of farmland to the USDA and imposes steep penalties for failing to report (up to 25 percent of the fair market value of the land), although they are rarely enforcedthe last fine imposed under the act was in 2014. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. 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. How Did the U.S. National Debt Get So Big? Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. Can you rollover Roth 401k to Roth IRA while still employed? U.S . Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. ), after gaining momentum seeded in farm states. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. You've successfully subscribed to this newsletter! The government itself actually holds just under one-third, about $5 trillion, of the $19.8 trillion government debt in the form of trust funds dedicated to legislatively-mandated programs like Social Security, Medicare, and Medicaid and veterans benefits. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. Billions of dollars flow into the U.S. from China every year. 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. To use individual functions (e.g., mark statistics as favourites, set 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. Secondly, China needs American markets to buy their exported goods. 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. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. How Much Money Does the U.S. 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. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. 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. 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. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. National Association of Realtors. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. In fact, research firm Gartner revealed last year that a third of supply chain leaders had plans to move at least some of their manufacturing out of China before 2023. companies.". Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. 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. With an aging U.S. farmer population and not enough new farmers able to enter the industry, more land will inevitably be converted to other uses or sold to foreign and domestic investors unless policies are put in place to support the next generation of farmers. Additionally, Walmart has never owned Dollar Tree and has no plans to acquire the business. 5. As a Premium user you get access to the detailed source references and background information about this statistic. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. That would hurt China's competitiveness by raising the yuans value relative to the dollar. 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. Then you can access your favorite statistics via the star in the header. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. The . TreasuryDirect. You can only download this statistic as a Premium user. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. "Report on Foreign Portfolio Holdings of U.S. However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. This is just a small part of the 30 . Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. 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. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. "Debt to the Penny. Walmart does not own Dollar Tree as of 2022. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. These include white papers, government data, original reporting, and interviews with industry experts. 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 United States owes China approximately $980.8 billion as of May 2022. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). This compensation may impact how and where listings appear. Market data provided by Factset. This Treasury-led change makes it difficult to make long-term comparisons. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. U.S. Debt to China: How Much Is It, and Why? The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. ", International Monetary Fund. CSIS does not take specific policy positions. That's a decline of. Research Associate, Global Food Security Program. Powered and implemented by FactSet Digital Solutions. Legal Statement. China drew some headlines in 2013 and 2014 for buying up a lot of gold to store in its bank vaults, but the real safety net for the yuan is the worldwide belief in the dollar. The hardware brand is a publicly-traded company that does not have a majority shareholder. Congress can then increase the federal spending that spurs U.S. economic growth. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. This includes the Federal Reserve, which already owns six times as much debt as China. U.S. consumers benefit from low consumer prices. (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. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. 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. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. 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). In, National Association of Realtors. 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. 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. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. This material may not be published, broadcast, rewritten, or redistributed. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. "GDP growth (Annual %) - China. The reality is very different than the rhetoric. How much of the U.S. land does China own? The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. 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). Washington, DC 20036. 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. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. Newt says China will 'dominate world' if tech theft isn't stopped, 'it's a matter of life and death', share data with Chinese communist spy agencies. China's low-cost competitive strategy seems to be working. The post, which has been shared over 256,000 times as of April 14, is headlined with "read this before buying meat." "The hogs will still be raised here, but slaughtered and packaged for . "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". As soon as this statistic is updated, you will immediately be notified via e-mail. The buying gorge went from April 2021 to March 2022 and . Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. Investopedia requires writers to use primary sources to support their work. The economy of China is driven by manufacturing and exporting. 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. 1616 Rhode Island Avenue, NW The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. Chinas demand for Treasurys helps keep U.S. interest rates low. How Much U.S. Debt Does China Really Own? Is Americas Debt to China Really So Bad? 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. Chinese billionaire and businessman Wang. How much of Chinese industry is state-owned? 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. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." And Human Rights Watch has written that China is an'existential threat' to human rights." RT @lillybug000: How much more does any American have to see to realize our government is owned by China. It could be bigger," he surmised. 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? Longley, Robert. Individuals can buy and sell U.S. debt, as can central banks for countries like China. 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. 41 on The Land Reports 2022 list of Americans who own the most land. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. That figure was$30.5trillion as of June 30, 2022. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. "Frequently Asked Questions About the Public Debt. How many times does Coca Cola pay dividends? The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. 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. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . Access to this and all other statistics on 80,000 topics from, Show sources information Chart. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. In return, American consumers get cheap Chinese products and incoming investment capital. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Haier bought GE for $5.4 billion, a recording breaking sum at that time. That changed with the USMCA. 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 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. Agricultural Land. Countries Who Own The Most Acres U.S. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. China holds more than $1 trillion of the U.S. national debt. 1 Of the 109 countries that own U.S. agricultural land, China ranks No. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . It amounted to about 192,000 of the. Ever since the establishment of theBretton Woods Systemin 1944, the value of Chinas currency, the yuan, has been connected or pegged to the value of the U.S. dollar. The resulting loss of export business would lead to a major unemployment crisis in China. 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. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. What is the best way to liquidate stocks? They use different business structures to further conceal it.. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Center for Strategic and International Studies As of 2019, a total of 191,000 acres of American land were owned by China. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. Amanda Jackson has expertise in personal finance, investing, and social services. 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 the contrition paid off: F9 grossed $136 million in China its first weekend, nearly double its . As its exports decline, China is less able to invest in U.S. Treasurys. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Owe China? 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. 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. . 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. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. 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. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. This material may not be published, broadcast, rewritten, "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. Its a massive undertaking to verify who really owns [the land], Maxwell said. 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 . 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. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Every year since 2010, China has held more than $1 trillion in U.S. debt. The offers that appear in this table are from partnerships from which Investopedia receives compensation. ", Congress.gov. Definition and Impact. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. 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. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. Her modest, two-story white farmhouse has . Gates is No. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. 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. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. ", The World Bank. 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. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government.
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