Its also a small percentage of the nearly 900 million acres of total American farmland. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. 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. 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. How Much Money Does the U.S. Is it better to pay off credit card or pay down? Howard Evans on Twitter: "RT @lillybug000: How much more does any What US companies are now owned by China? Manuel Balce Ceneta/AP Photo. Who owns America? Hint: It's not China - CNN 2021 by the Center for Strategic and International Studies. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. And its findings may be surprising to some. How much US debt does China own and why is it important? 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 made the yuan more attractive to forex traders in global markets. Why Is China Buying U.S. Farmland? Security Concerns, Explained Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. Chart. David Schlessinger and I founded Five Below 16 years ago with a promise to build an amazing store for teens and pre-teens that offers trend-right, high-quality merchandise all at $5 or less, said Tom Vellios . Even at a slow pace, dollar demand would drop. companies.". Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. Here's a quick and fascinating breakdown by total. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. Discover the current debt ceiling and its economic impact. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. This material may not be published, broadcast, rewritten, or redistributed. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. 1616 Rhode Island Avenue, NW While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. 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. 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.. Agricultural Land. National Association of Realtors. Powered and implemented by FactSet Digital Solutions. Angela Huffman is a sixth-generation farmer in Wyandot County, which, along with Paulding County, has more than 41,000 acres of foreign-owned farmland. 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 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. ", Total number of residential properties bought by Canadian buyers in the U.S. 2010-22, Total property sales to foreign buyers in the U.S. 2010-2022, Share of Indian buyers of residential property in the U.S. 2011-2022, Total number of residential properties purchased by Indian buyers in the U.S. 2010-22. 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. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". As of 2019, a total of 191,000 acres of American land were owned by China. "Bretton Woods-GATT, 19411947.". By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. China has become one of the largest economies in the world. 41 on The Land Reports 2022 list of Americans who own the most land. to incorporate the statistic into your presentation at any time. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. What is the best way to liquidate stocks? A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. China does not publish the. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. This statistic is not included in your account. [Online]. Even so, large land purchases present various localized concerns in the places where they occur. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. Greed Is Good or Is It? How much of America do foreigners really own? - MarketWatch All rights reserved. The first and most important is that China wants its currency, the yuan, pegged to the dollar. 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. 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. Biden thanks King of Jordan for "historic meeting" in Aqaba and 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.. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. At some price point, U.S. consumers would buy American products instead. 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. 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.. 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. ", U.S. Department of the Treasury. 2023 Center for Strategic & International Studies. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. It allows the U.S. Treasury to borrow more at low rates. How America got outmaneuvered in a critical mining race Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. While their market shares may be different percentages (Amazon owns 39% of all US ecommerce sales, while Alibaba owns 58.2% of all retail ecommerce shares in China), they each dominate their respective countries in which they began. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. Most countries want their currency values to fall so they can win global currency wars. 5. Agricultural Land: Facts, Figures, and an Assessment of Real Threats, Brzezinski Chair in Global Security and Geostrategy, Diversity and Leadership in International Affairs Project, Energy Security and Climate Change Program, Media Relations Manager, External Relations. ", The World Bank. Alibaba handles more business than any other e-commerce company. Mexico has gone from 38% to 42%. 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. 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). Investopedia does not include all offers available in the marketplace. "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. How Did the U.S. National Debt Get So Big? Crops beings harvested on an Iowa farm in 2018, Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases, North Dakota Turns Against Chinese Corn Mill Project. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. 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. 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. Many Americans find the brand appealing because it has a "Made in America" stamp on its products, however, the company has been owned by Chinese company Haier since 2016. | Photo by Nathan Howard/Getty Images. What does China own in the U.S.? | CNBC Explains - YouTube Powered and implemented by FactSet Digital Solutions. Quotes displayed in real-time or delayed by at least 15 minutes. 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. 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). 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. How many times does Coca Cola pay dividends? Investopedia requires writers to use primary sources to support their work. 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. How do I know if my stimulus was deposited? The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Please create an employee account to be able to mark statistics as favorites. 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. (2022). Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. What is the highest credit limit for Chase Sapphire? Washington, DC 20036. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. ", United States Department of Treasury. 18, far behind No. 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. 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. 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. Before June 2010, Treasury reports showed that China held about $843 billion in debt. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek Quote and Meaning, What Was the Eisenhower Doctrine? The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. Legal Statement. Center for Strategic and International Studies 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. 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 . This material may not be published, broadcast, rewritten, Fact check: Smithfield, owned by Chinese firm, sells US-processed meat All rights reserved. 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. Q4: What federal solutions are being discussed? "Frequently Asked Questions About the Public Debt. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. 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. You only have access to basic statistics. (2021, September 2). The buying gorge went from April 2021 to March 2022 and . CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. China is also responding to accusations of manipulation. (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. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Historically, between 20,000 and 40,000 residential properties were bought by. World Gold Council. "Debt Position and Activity Report, June 2017," Page 1. Countries with lower currency values export more, since their products cost less when sold in foreign countries. 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. To use individual functions (e.g., mark statistics as favourites, set From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. They use different business structures to further conceal it.. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. This also reduces the purchasing power of Chinese earners. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. "Major Foreign Holders of Treasury Securities.". That makes Chinese exports cheaper than American-made goods, increasing sales. The last significant increase in acres occurred between 2012 and 2013 .