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and the USDA does not check it for completeness and accuracy, so there are frequent typos, omissions, and outdated information. The hardware brand is a publicly-traded company that does not have a majority shareholder. Historically, between 20,000 and 40,000 residential properties were bought by. 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. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. Walmart does not own Dollar Tree as of 2022. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. 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. . Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. 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. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. The ideal entry-level account for individual users. China also is liberalizing its control of the yuan, also called the "renminbi." Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. 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. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." 2023 Center for Strategic & International Studies. 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. 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. Stoves, refrigerators, washers and dryers from General Electric have been around for more than 100 years, but starting last year, the appliance division of the iconic company has been Chinese. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Nonagricultural land (such as homesteads and roads) accounted for 2%. Read our. How do I know if my stimulus was deposited? What Would Happen if China Were to Call In Its Debt? 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. 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. That makes Chinese exports cheaper than American-made goods, increasing sales. You've successfully subscribed to this newsletter! Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. Anyone can buy U.S. debt. The last significant increase in acres occurred between 2012 and 2013 . Chinese firms have expanded their presence in American agriculture over the last decade by snapping up farmland and purchasing major agribusinesses, like pork processing giant Smithfield Foods. Pentagon releases list of companies linked to Chinese military The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? 1 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. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. China's low-cost competitive strategy seems to be working. 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. "Report on Foreign Portfolio Holdings of U.S. Then you can access your favorite statistics via the star in the header. March 18, 2016, 2:10 PM. ", Congress.gov. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. Why China Buys U.S. Debt With Treasury Bonds - Investopedia Treasury securities are freely traded around the world. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Quote and Meaning, What Was the Eisenhower Doctrine? However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. That's a decline of. ", Harvard Business Review. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. How much of the United States does China really own? Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. 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 . Fact check: Smithfield, owned by Chinese firm, sells US-processed meat Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. Legal Statement. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. WH Group is a publicly-traded company with shareholders around the world. The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. In addition, many economists contend that the reported U.S. debt should include at least another $120 trillion in unfunded future liabilitiesmoney the government does not currently have but is legally obligated to pay people in the future. 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. "GDP Growth (Annual %) - Japan, China.". "Bretton Woods-GATT, 19411947.". 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). 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. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. Q4: What federal solutions are being discussed? AMC. Are you interested in testing our business solutions? 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. Mexico has gone from 38% to 42%. China "Owns" Us: How the Chinese Are Buying Up America She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. Secondly, China needs American markets to buy their exported goods. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. "General Government Gross Debt.". 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. China's economic growth has slowed over the years. The first and most important is that China wants its currency, the yuan, pegged to the dollar. That data also shows that the. 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. 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. ", United States Department of Treasury. Its also a small percentage of the nearly 900 million acres of total American farmland. US National Debt Clock: How Its Warning Affects You. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. Center for Strategic and International Studies The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. In late May, the Senate unanimously passed the bipartisan Holding Foreign Companies Accountable Act in a bid to force foreign companies with China at the likely forefront to adhere to U.S. securities law, and compel some to be removed from American stock exchanges. Even so, large land purchases present various localized concerns in the places where they occur. The Chinese Investor owns about 14% of Snapchat's shares. Her modest, two-story white farmhouse has . 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. 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. World Gold Council. 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. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. That changed with the USMCA. 2021 by the Center for Strategic and International Studies. Individuals can buy and sell U.S. debt, as can central banks for countries like China. Who owns America? Hint: It's not China - CNN 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. "Debt Position and Activity Report, June 2022," Page 1. Washington, DC 20036. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. 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. | Photo by Nathan Howard/Getty Images. 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. CSIS does not take specific policy positions. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. Q2: What threats do foreign acquisitions of U.S. farmland pose? The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. 2023 FOX News Network, LLC. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. A paid subscription is required for full access. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. This statistic is not included in your account. To use individual functions (e.g., mark statistics as favourites, set 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. | Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. Amazon founder Jeff Bezos comes in at No. Market data provided by Factset. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". You need a Statista Account for unlimited access. Even at a slow pace, dollar demand would drop. 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. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. These are especially vital not only for high-technology products such as smartphones and electric vehicles but for U.S. frontline weapons including the F-35 fighter, which requires 920 pounds of rare earth minerals. As a Premium user you get access to background information and details about the release of this statistic. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. 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 reality is very different than the rhetoric. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. "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. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. It has held up to $1.3 trillion of U.S. debt. Every year since 2010, China has held more than $1 trillion in U.S. debt. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. Disney is in no way owned by Chinese interests in terms of shareholders. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. 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 . Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. Gates is No. Appliances (technology), IBMP.C. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. Chinese billionaire and businessman Wang. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. Definition and Impact. How many times does Coca Cola pay dividends? This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. Office of the Historian. As a Premium user you get access to the detailed source references and background information about this statistic. Investopedia does not include all offers available in the marketplace. Chinese purchases of U.S agricultural land sparked concern in Congress among a bipartisan group of lawmakersbut 18 other countries own more American agricultural acres than China. or redistributed. ", The World Bank. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. How Much Money Does the U.S. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. Powered and implemented by FactSet Digital Solutions. China held 1.1 trillion U.S. dollars in U.S. securities. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. How much of Chinese industry is state-owned? Use Ask Statista Research Service. Fact Check: Does the Chinese Communist Party Own AMC - Newsweek (2021, September 2). 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. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Are chinese companies state owned? [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. 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. "How Much U.S. Debt Does China Really Own?" 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. 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?