Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Of that, 195,000 acres, worth almost $2 billion when purchased, are. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? Includes buyers from the People's Republic of China, Hong Kong and Taiwan. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. Washington, DC 20036. 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. In, National Association of Realtors. The Chinese government's theft of intellectual property has been an open secret for decades. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. Disney is in no way owned by Chinese interests in terms of shareholders. "Chinese companies have been carrying out unchecked reverse mergers for years now, and the media (influence) has been going under the radar for years now," Murad added. 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 would hurt China's competitiveness by raising the yuans value relative to the dollar. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. 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. I'm a reporter for Forbes' explainers and trends team. 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. 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. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. 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. China is taking steps to make its currency, the yuan, transition to a global currency. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. TreasuryDirect. How Much Is the Per Capita Money Supply in the U.S.? That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. As a Premium user you get access to the detailed source references and background information about this statistic. 18, far behind No. 1 2023 Center for Strategic & International Studies. 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. 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. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. The deal meant that WH Group now owns the largest pork producer in the United States as well as over 146,000 acres of Missouri farmland. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. What Is the Public Debt, and When Is It Too High? "GDP growth (Annual %) - China. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. "Debt to the Penny. 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. Although Congress has become increasingly concerned about Chinese land purchases, investors from China currently own only a small fraction of this land, at 191,652 acres (0.05 percent of the total). 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. A paid subscription is required for full access. 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. Please create an employee account to be able to mark statistics as favorites. Most states, like Texas and Maine, have no restrictions on foreign ownership of land, contributing to the large amount of farmland that is under foreign control in these states. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. ", The World Bank. 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. 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. All rights reserved. Arizona, for instance, has no rules on groundwater pumping as long as it is for a beneficial use, which includes agriculture even if the products are shipped elsewhere. This acquisition put two Chinese directors on Hilton's Board of 10. Breaking Down the US Debt and Who Owns It. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. 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. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. Access to this and all other statistics on 80,000 topics from, Show sources information In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. "Major Foreign Holders of Treasury Securities. In return, American consumers get cheap Chinese products and incoming investment capital. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." Owe China? 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. U.S . Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. 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. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. ", Harvard Business Review. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. You can learn more about the standards we follow in producing accurate, unbiased content in our. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. What is the highest credit limit for Chase Sapphire? 04 Mar 2023 03:14:21 A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. How Much Money Does the U.S. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. In a vicious cycle, they sell the U.S. dollars they receive through exports to get renminbi, which increases the supply of U.S. dollars and raises the demand for renminbi, to the point that the renminbi ranked as the eighth most traded currency in the world as of 2019. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. Mutual Fund and ETF data provided by Refinitiv Lipper. 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). Please do not hesitate to contact me. Profit from the additional features of your individual account. 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. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. 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. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. 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. 5. So, in part, Chinese demand for American property is a sign of their desire to give their children the best opportunities to have a successful future.. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. March 18, 2016, 2:10 PM. 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. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. 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. Market data provided by Factset. And Human Rights Watch has written that China is an'existential threat' to human rights." The renewed focus on curbing foreign farm purchases comes as Biden and Agriculture Secretary Tom Vilsack roll out a series of actions to bolster the food supply chain, following major disruptions caused by the pandemic. The United States owes China approximately $980.8 billion as of May 2022. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . 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. 2023 FOX News Network, LLC. Manuel Balce Ceneta/AP Photo. Market data provided by Factset. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. Gates continues to deny any plot, telling Reddit users in January that he owns less than one four-thousandths of U.S. farmland and invests in farms to improve their production and create jobs. 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. . Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. How much of the USA is owned by China? 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. China holds more than $1 trillion of the U.S. national debt. 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. That's when the U.S. Department of the Treasury changed how it measures the debt. Q1: Where and why are foreign entities purchasing farmland in the United States? "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. The US National Debt and How It Affects You. National Association of Realtors. Of the 109 countries that own U.S. agricultural land, China ranks No. or redistributed. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. 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. 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. Consequences of Owing Debt to the Chinese, Government Bond: What It Is, Types, Pros and Cons, Repurchase Agreement (Repo): Definition, Examples, and Risks, U.S. Debt Ceiling: Definition, History, Pros, Cons, Clashes, Debt-to-GDP Ratio: Formula and What It Can Tell You, Major Foreign Holders of Treasury Securities, Debt Position and Activity Report, June 2017, Debt Position and Activity Report, June 2022, Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill, Frequently Asked Questions About the Public Debt, China's Gold Market: Progress and Prospects, Federal Debt Held by Federal Reserve Banks. Longley, Robert. How much of the U.S. land does China own? Amazon founder Jeff Bezos comes in at No. 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 debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. 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. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. 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 . It buys available excess U.S. dollars from the exporters and gives them the required renminbi. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. 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. What is the best way to liquidate stocks? The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. It has held up to $1.3 trillion of U.S. debt. 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. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. WH Groups shareholders include many large U.S.-based financial institutions.". ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. 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. In 2019, 49 percent of reported foreign-held acreage in the United States was forest land, while 25 percent was crop land, 24 percent was for pasture and other agricultural uses, and 2 percent was for non-agricultural uses (such as homesteads and roads). "Frequently Asked Questions About the Public Debt. Even at a slow pace, dollar demand would drop. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. The National Young Farmers Coalition (NYFC) anticipates that two-thirds of farmland will change hands over the next decade as farmers retire, meaning that more land could become available for foreign purchase. It receives these dollars from Chinese companies that receive them as payments for their exports. "Federal Debt Held by Federal Reserve Banks. Mexico has gone from 38% to 42%. 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. Smithfield was also in line to receive money from the program, which was created to help U.S. farmers strung by trade retaliation from China and other competitors. 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. companies.". By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. 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. What Would Happen if China Were to Call In Its Debt? The measure is expected to reach the House floor before the end of July, as part of a broader appropriations package, although the Senate has not yet drafted its own version of the spending bill. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. Q2: What threats do foreign acquisitions of U.S. farmland pose? We also reference original research from other reputable publishers where appropriate. 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. That effort includes greater scrutiny of large meat processing companies like JBS and Smithfield, as well as plans to tighten the requirements for meat to be labeled a Product of the USA.. How can I increase my credit score by 25 points? As of the start of 2020, Chinese investors owned about 192,000 acres of U.S. agricultural land valued at about $1.9 billion, according to Politico. U.S.-based companies also own over nine million acres in other countries. As a Premium user you get access to background information and details about the release of this statistic. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. This material may not be published, broadcast, rewritten, "GDP Growth (Annual %) - China. Its also a small percentage of the nearly 900 million acres of total American farmland. (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. 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 . 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.. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. A repurchase agreement is a form of short-term borrowing for dealers in government securities. 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 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. Investopedia requires writers to use primary sources to support their work. They use different business structures to further conceal it.. China also became the world's biggest exporter in 2009. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. "How Much U.S. Debt Does China Really Own?" Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. Is Americas Debt to China Really So Bad? China also is liberalizing its control of the yuan, also called the "renminbi." 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. 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). Use Ask Statista Research Service. ", The World Bank. "Major Foreign Holders of Treasury Securities.". Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. Q5: What is the real threat to U.S. food security? Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Chinas demand for Treasurys helps keep U.S. interest rates low. Japanese-owned debt doesn't receive nearly as much negative attention as Chinese-owned debt, ostensibly because Japan is seen as a friendlier nation and the Japanese economy hasn't grown as fast as China's year after year. | Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. The first and most important is that China wants its currency, the yuan, pegged to the dollar. Gates is No. 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. This Treasury-led change makes it difficult to make long-term comparisons. Its economy grew more than 10% for the three decades before the 2008 recession. All rights reserved. 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. 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. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. 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.
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