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WH Groups shareholders include many large U.S.-based financial institutions.". China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. U.S . As its exports decline, China is less able to invest in U.S. Treasurys. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Greed Is Good or Is It? The first and most important is that China wants its currency, the yuan, pegged to the dollar. 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. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. The data is based on a 1978 law directing foreign nationals to report their U.S. agricultural holdings to USDA a requirement that can be difficult for the department to enforce. It is responsible for lower interest rates and cheap consumer goods. Foreign Purchases of U.S. Agricultural Land: Facts, Figures, and an ", International Monetary Fund. | China held 1.1 trillion U.S. dollars in U.S. securities. How Did the U.S. National Debt Get So Big? On the other hand, if China were to call in its debt, the demand for the dollar could plummet. If you are an admin, please authenticate by logging in again. 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. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. ThoughtCo. 10 iconic American companies owned by Chinese investors - CNBC 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. Foreign Ownership and Holdings of U.S. Agricultural Land What US companies are now owned by China? 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. or redistributed. 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.. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. It amounted to about 192,000 of the. 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). How much of the U.S. land does China own? - FinanceBand.com The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. 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. Anyone can buy U.S. debt. "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. All Rights Reserved. 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. A repurchase agreement is a form of short-term borrowing for dealers in government securities. 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. How much US debt does China own and why is it important? It has opened yuan trading centers in London and Frankfurt. The USDA reports that the changes in pasture and crop land holdings since 2009 were mostly due to foreign-owned wind companies signing or terminating long-term leases. Disney is in no way owned by Chinese interests in terms of shareholders. China also became the world's biggest exporter in 2009. 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. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. 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. 2023 FOX News Network, LLC. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. China's economic growth has slowed over the years. ", The World Bank. "How Much Money Does the World Owe 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 . For example, critics say that should the Chinese government suddenly call indemand immediate repaymentof all of the U.S. governments obligations, the American economy would be hopelessly crippled. "Major Foreign Holders of Treasury Securities [2000-2020]. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. 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. Longley, Robert. Former Vice President Mike Pence speaks during an event. The bill, which is yet to move through the House, would necessitate that "an issuer must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the issuer has retained a foreign public accounting firm not subject to inspection by the board. Of China's own top 500, 74 percent (370) were state-owned and state stock-holding enterprises, with assets of 27, 370 billion yuan and realizing profit of 266.3 billion yuan, representing 96.96 percent and 84.09 percent respectively of the top 500 corresponding values. 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. ", The World Bank. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). In 2011, the total U.S. debt stood at $14.3 trillion. ", TreasuryDirect. Why A Secretive Chinese Billionaire Bought 140,000 Acres Of Land In Texas Longley, Robert. Stephen Gandel. Q1: Where and why are foreign entities purchasing farmland in the United States? All rights reserved. The buying gorge went from April 2021 to March 2022 and . By artificially keeping the value of the yuan down, the government reduces the buying power of the Chinese middle class, thus making the sale of exports vital keeping the countrys economy moving. CSIS does not take specific policy positions. 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. China has the second-greatest amount of U.S. debt held by a foreign country. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. How Much U.S. Debt Does China Really Own? The United States owes China approximately $980.8 billion as of May 2022. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. How much of the United States does China really own? The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. China's Large Position in U.S. Treasuries. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. (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. 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. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. Concern about Chinese purchases of U.S. agricultural land increased in late January when the China-based Fufeng Group Ltd. was prevented from building a cornmill on land close to a North Dakota Air Force base after officials called it a security risk. Walmart is founded and owned by the Walton family. In 2019, it grew at 6.1%, an even more sustainable rate. 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. 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). "Bretton Woods-GATT, 19411947.". China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. As a Premium user you get access to the detailed source references and background information about this statistic. "GDP Growth (Annual %) - Japan, China.". China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. Other foreign holders included oil-exporting countries and Caribbean banking centers. How much of the U.S. land does China own? In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. 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. How Much U.S. Debt Does China Really Own? - ThoughtCo Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. Please do not hesitate to contact me. Quotes displayed in real-time or delayed by at least 15 minutes. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Chinas demand for Treasurys helps keep U.S. interest rates low. That makes Chinese exports cheaper than American-made goods, increasing sales. "In 2017, the United States produced zero rare earth minerals. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. 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. Q5: What is the real threat to U.S. food security? Individuals can buy and sell U.S. debt, as can central banks for countries like China. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. Its research is nonpartisan and nonproprietary. Even at a slow pace, dollar demand would drop. This amount is subject to market fluctuations. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. (July 18, 2022). "Frequently Asked Questions About the Public Debt. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. When the pandemic hit, Smithfield increased pork exports to China even as the United States experienced widespread meat shortages due to supply chain disruptions and Smithfield closed some of its plants due to poor working conditions. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. These are accounts dedicated to Social Security, Medicare, and other entitlements. Profit from the additional features of your individual account. What country owns the most US soil? - coalitionbrewing.com (2022). The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. Most countries want their currency values to fall so they can win global currency wars. How Much Is the Per Capita Money Supply in the U.S.? But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). "How Much U.S. Debt Does China Really Own?" 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 . 2 Which Country Owes the Most Money to China? 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. Available: https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022, Available to download in PNG, PDF, XLS format, Cross-border commercial real estate investment in the United States, Origin of foreign residential buyers in the U.S. 2016-2018, Cross-border commercial real estate investments in the U.S. 2018, by country, Number of commercial properties in the U.S. 2018, by investor country, Property purchased by foreign buyers in U.S. 2009-2022, by type of area, Share of commercial space leased by foreign clients U.S. 2018, by size, Share of commercial space leased by foreign clients U.S. 2018, by lease term, Perception of real estate market among foreign investors in U.S. 2016-2018, Perception of U.S. real estate prices among foreign buyers 2018, Reasons why foreign buyers don't buy real estate in the U.S. 2019, Share of Chinese buyers of residential property in the U.S. 2011-2022, Total residential property sales to Chinese buyers in the U.S. 2010-2022, Total number of residential properties bought by Chinese buyers in the U.S. 2010-22, Average purchase price of residential property by Chinese buyers in the U.S. 2010-22, Median purchase price of residential property by Chinese buyers in the U.S. 2010-2022, Share of CRE investments from China/Hong Kong in the U.S. 2011-2017, by investor type, Value of China/Hong Kong CRE investments made in the U.S. 2011-2017, Share of Canadian buyers of residential property in the U.S. 2011-2022, Total residential property sales to Canadian buyers in the U.S. 2010-2022, Average purchase price of residential property by Canadian buyers in the U.S. 2010-22, Median purchase price of residential property by Canadian buyers in the U.S. 2010-22, Share of UK buyers of residential property in the U.S. 2011-2022, Total residential property sales to buyers from the UK in the U.S. 2010-2021, Total number of residential properties purchased by UK buyers in the U.S. 2010-2021, Average purchase price of residential property by UK buyers in the U.S. 2010-2021, Median purchase price of residential property by UK buyers in the U.S. 2010-2021, Total residential property sales to Indian buyers in the U.S. 2010-2022, Average purchase price of residential property by Indian buyers in the U.S. 2010-2022, Median purchase price of residential property by Indian buyers in the U.S. 2010-2022, Share of Mexican buyers of residential property in the U.S. 2011-2022, Total residential property sales to Mexican buyers in the U.S. 2010-2022, Total number of residential properties bought by Mexican buyers in the U.S. 2010-2022, Average purchase price of residential property by Mexican buyers in the U.S. 2010-22, Median purchase price of residential property by Mexican buyers in the U.S. 2010-2022, Average price of residential property in France 2022, by property type, Breakdown of housings in France 2020, by square meter price, Average price of rental flats per square meter in France 2020, Average rent price for apartments in the largest French cities 2022, Value of commercial real estate investment in France 2021-Q1 2022, by type, Origin of major foreign buyers of U.S. residential property in 2022, Share of Brazilian buyers of residential property in the U.S. 2011-2020, Share of German buyers of residential property in the U.S. 2011-2020, Housing purchase transactions volume Jeju, South Korea 2009-2021, Housing transactions volume Busan, South Korea 2009-2021, Housing transactions volume Gyeonggi, South Korea 2009-2021, Housing purchase transactions volume Gyeonggi, South Korea 2009-2021, Housing transactions volume Jeju, South Korea 2009-2021, Realtors' sources of referrals for foreign residential property buyers U.S. 2022, Apartment purchase transactions volume Incheon, South Korea 2009-2021, Find your information in our database containing over 20,000 reports, Chinese buyers were responsible for only six percent of all sales to foreigners, bought the most U.S. residential property, property sales to foreign buyers peaked at 153 U.S. dollars in 2017. 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. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. 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. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. Center for Strategic and International Studies By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. TreasuryDirect. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. Historically, between 20,000 and 40,000 residential properties were bought by. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. The remaining 38 percent is held by entities from almost a hundred other countries. It receives these dollars from Chinese companies that receive them as payments for their exports. "Under President Trump, the U.S. was the first to recognize their nonstop deceits, and now the rest of the world has a clearer picture of China's ambition.