how much of america is owned by china?

2021 by the Center for Strategic and International Studies. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. ThoughtCo. As of the end of November, China owned US$1.063 trillion of the total outstanding US government debt issued by the US Department of the Treasury. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. (July 18, 2022). These are accounts dedicated to Social Security, Medicare, and other entitlements. Stephen Gandel. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. What is the highest credit limit for Chase Sapphire? This Treasury-led change makes it difficult to make long-term comparisons. Times Square billboard endeavors to warn of creeping Chinese influence. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. 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. It has held up to $1.3 trillion of U.S. debt. Congressional Research Service. Walmart is founded and owned by the Walton family. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. 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. 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. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. The products are still made in the USA, but the decisions are made in China. At some price point, U.S. consumers would buy American products instead. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. 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 other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. See Media Page for more interview, contact, and citation details. Agricultural Land. In the wake of Covid-19 supply chain disruptions and escalating tensions with China, U.S. lawmakers have specifically increased scrutiny of purchases by Chinese investors. 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. 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. ", Harvard Business Review. China has the second-greatest amount of U.S. debt held by a foreign country. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. How Much Money Does the U.S. 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.. 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 . "The first priority is to reclaim our critical supply chains so that we can become self-secure instead of reliant on the Chinese government,"Will Coggin, managing director of the American Security Institute, told Fox News. How Did the U.S. National Debt Get So Big? Discover the current debt ceiling and its economic impact. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. How many times does Coca Cola pay dividends? What US companies are now owned by China? China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . Given the state of the AFIDA data, it seems it is doing neither. 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. The PBOC can print renminbi as needed. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. The . Powered and implemented by FactSet Digital Solutions. 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. As it is not known exactly how much US land is owned by China. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. These include white papers, government data, original reporting, and interviews with industry experts. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. 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. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. 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. ", National Association of Realtors, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 Statista, https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/ (last visited March 04, 2023), Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph], National Association of Realtors, July 18, 2022. What Would Happen if China Were to Call In Its Debt? Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. All rights reserved. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. I'm a reporter for Forbes' explainers and trends team. Market data provided by Factset. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Canadian investors hold the largest share of this land, at 29 percent, with the Netherlands, Italy, Germany, and the United Kingdom collectively owning another 33 percent. Get full access to all features within our Business Solutions. "How Much U.S. Debt Does China Really Own?" 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. 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). Billions of dollars flow into the U.S. from China every year. Even if these bills had passed, they would have strengthened oversight on purchases of U.S. companies, not agricultural land specifically, leaving most land acquisitions unregulated. The last significant increase in acres occurred between 2012 and 2013 . Its also a small percentage of the nearly 900 million acres of total American farmland. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. Federal Reserve Bank of St. Louis. I would suggest that we sit down and we work through it so we can accomplish our objective, but do it in a way that is sensitive to all those who might be somewhat offended by the approach.. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. 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. . For example, the huge amount of debt that the U.S. government owes Chinese lenders has been the subject of countless debates, headline news stories, and political platforms for decades. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". You need at least a Starter Account to use this feature. 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. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. 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. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. Data cover both foreign-owned (29.1 million acres) and U.S. China's economic growth has slowed over the years. This material may not be published, broadcast, rewritten, And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. 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. "Major Foreign Holders of Treasury Securities [2000-2020]. 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. How can I increase my credit score by 25 points? 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. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. You can only download this statistic as a Premium user. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. As its exports decline, China is less able to invest in U.S. Treasurys. Each bill, bond, and note represents ownership in U.S. debt. (2022). The top two foreign holders of U.S. debt are Japan and China. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. 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. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. 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. ", The World Bank. "Bretton Woods-GATT, 19411947.". Since 2016, a company owned by Xinjiang-based real estate tycoon Sun Guangxin had spent an estimated $110 million buying up land in Texas' Val Verde County. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. 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. 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. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. China holds more than $1 trillion of the U.S. national debt. | 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. Longley, Robert. Then you can access your favorite statistics via the star in the header. It amounted to about 192,000 of the. Disney is in no way owned by Chinese interests in terms of shareholders. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. U.S. Department of the Treasury. "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. 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. While many politicians like to angrily proclaim that China owns the United States because it owns so much of the U.S. debt, economists say that claim is far more rhetoric than fact. The United States currently produces more than enough food per capita, even after adjusting for food waste. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. TreasuryDirect. Breaking Down the US Debt and Who Owns It. To do that, China had to loosen its peg 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. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. According to sources, Time Magazine received $700,000, the Financial Times $371,577, Foreign Policy Magazine $291,000, the Los Angeles Times $272,000, and other notable media outlets received more than $1 million. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? "Major Foreign Holders of Treasury Securities. 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. 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. 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. Walmart owns no shares. 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. 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. China has steadily accumulated U.S. Treasury securities over the last few decades. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. 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. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. 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. China's position as the largest foreign holder of U.S. debt gives it some political leverage. Longley, Robert. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). 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. That makes Chinese exports cheaper than American-made goods, increasing sales. Q5: What is the real threat to U.S. food security? Please create an employee account to be able to mark statistics as favorites. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. China holds more than $1 trillion of the U.S. national debt. 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. Register in seconds and access exclusive features. 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. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. 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. 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). Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. All Rights Reserved. (2021, September 2). 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. Please do not hesitate to contact me. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. That would hurt China's competitiveness by raising the yuans value relative to the dollar. Are you interested in testing our business solutions? From 2016, the estimates include only residential transactions. 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 a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Even at a slow pace, dollar demand would drop. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. That's when the U.S. Department of the Treasury changed how it measures the debt. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. The US National Debt and How It Affects You. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Owning U.S. Treasury notes helps China's economy grow. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. 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. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. 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 . Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. China needs this growth to raise its low standard of living. 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. ", International Monetary Fund. China has become one of the largest economies in the world. China's economy would suffer along with everyone else's. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. A government bond is issued by a government at the federal, state, or local level to raise debt capital. to incorporate the statistic into your presentation at any time. "We Quotes displayed in real-time or delayed by at least 15 minutes. 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. 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. What is the best way to liquidate stocks? Debt to the Penny., U.S. Department of the Treasury. 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. They use different business structures to further conceal it.. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. Q3: What regulations are currently in place? It's more of a novelty day like Valentine's Day, rather than a religious celebration. With most forms of U.S. debt, like Treasury bills, redeemable in U.S. dollars, worldwide trust in the dollar and the U.S. economy, in general, remains Chinas main safeguard for the yuan. 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. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. Critics claim that the rule change was instrumental in allowing the deal to go through as written, and some members of Congress warned of Chinese government involvement in the purchase. 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. Washington, DC 20036. The United States owes China approximately $980.8 billion as of May 2022. The government now provides affordable housing by subsidizing commercial housing purchases or by offering low-rent public (social) housing to middle- and low-income families. 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). So, Lowes operates independently of Walmart. It was revealed that just last year alone, China spent $6.1 billion dollars on housing in the U.S. making it America's top foreign buyer. You need a Statista Account for unlimited access. Before June 2010, Treasury reports showed that China held about $843 billion in debt. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. 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. 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. 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. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. "In 2017, the United States produced zero rare earth minerals. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. World Gold Council. (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. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. Show publisher information Amanda Jackson has expertise in personal finance, investing, and social services. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. China does not publish the. 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. Longley, Robert. 41 on The Land Reports 2022 list of Americans who own the most land.

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