"China's Currency Policy," Page 1. 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 sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. 'American Soil' Is Increasingly Foreign Owned : NPR But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. Foreign Ownership and Holdings of U.S. Agricultural Land You've successfully subscribed to this newsletter! 41 on The Land Reports 2022 list of Americans who own the most land. You can only download this statistic as a Premium user. At some price point, U.S. consumers would buy American products instead. Agricultural Land. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. Profit from the additional features of your individual account. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. This is just a small part of the 30 . China has the second-greatest amount of U.S. debt held by a foreign country. "GDP Growth (Annual %) - China. What Would Happen if China Were to Call In Its Debt? China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. You need a Statista Account for unlimited access. It is responsible for lower interest rates and cheap consumer goods. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. Second, the Chinese rely on American markets to buy Chinese-produced goods. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. Former Vice President Mike Pence speaks during an event. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. The Netherlands is the second largest foreign owner with 4.6 million acres. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. 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. By artificially keeping the value of the yuan down, the government reduces the buying power of the Chinese middle class, thus making the sale of exports vital keeping the countrys economy moving. As it is not known exactly how much US land is owned by China. Powered and implemented by FactSet Digital Solutions. 1616 Rhode Island Avenue, NW 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. Federal Reserve Bank of St. Louis. It receives these dollars from Chinese companies that receive them as payments for their exports. The NYFC also points to both urban and rural development as a threat to the future of U.S. farms, since converting farmland to other uses drives up prices and makes the land unaffordable for beginning farmers. ", International Monetary Fund. Discover the current debt ceiling and its economic impact. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. [Online]. Center for Strategic and International Studies and Caitlin Welsh. A4: Since the 2013 purchase of Smithfield Foods, multiple bills have been proposed to provide more oversight of foreign investments in U.S. agricultural companies (including in 2017 and 2020), but until recently they each died in committee. 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. Why China Buys U.S. Debt With Treasury Bonds, A Look at National Debt and Government Bonds, National Debt: Definition, Impact, Key Drivers, Current U.S. Debt, 2020 Election: The Key Economic Issues Explained. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. This statistic is not included in your account. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. WH Groups shareholders include many large U.S.-based financial institutions.". Show publisher information China is also responding to accusations of manipulation. | "Debt Position and Activity Report, June 2022," Page 1. The products are still made in the USA, but the decisions are made in China. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. 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. "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. 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. As of 2019, a total of 191,000 acres of American land were owned by China. How much of the U.S. land does China own? - FinanceBand.com Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. China owns roughly $1.08 trillion worth of U.S. debt. This material may not be published, broadcast, rewritten, or redistributed. That would hurt China's competitiveness by raising the yuans value relative to the dollar. statistic alerts) please log in with your personal account. Individuals can buy and sell U.S. debt, as can central banks for countries like China. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. 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 post, which has been shared over 256,000 times as of April 14, is headlined with "read this before buying meat." "The hogs will still be raised here, but slaughtered and packaged for . Then you can access your favorite statistics via the star in the header. How do I know if my stimulus was deposited? Can you rollover Roth 401k to Roth IRA while still employed? This also reduces the purchasing power of Chinese earners. American Companies You Didn't Know Were Owned By Chinese Investors That's a decline of. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. You only have access to basic statistics. Mutual Fund and ETF data provided by Refinitiv Lipper. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. National Debt or Federal Deficit? Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. 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. 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. China is buying up American farms. Washington wants to crack - POLITICO Billions of dollars flow into the U.S. from China every year. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. "Debt to the Penny. The PBOC can print renminbi as needed. Legal Statement. 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. According to the Federal Reserve and U.S. Department of the Treasury, foreign countries held a total of 7.03 trillion U.S. dollars in U.S. Treasury securities as of March 2021. 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. 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 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. 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. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. 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. (ChinaOwnsUs campaign). [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. 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. 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. 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. The Chinese government's theft of intellectual property has been an open secret for decades. 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. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. As soon as this statistic is updated, you will immediately be notified via e-mail. 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. Fact check: Smithfield, owned by Chinese firm, sells US-processed meat In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. The manufacturing of smartphones and other household items is heavily reliant on China, which controls most of the rare earth minerals that make those items work. 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. . Office of the Historian. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. Nonagricultural land (such as homesteads and roads) accounted for 2%. "GDP growth (Annual %) - China. U.S. Debt to China: How Much Is It, and Why? Of that, 195,000 acres, worth almost $2 billion when purchased, are. "He firmly believes that China, before the year [20]30, '35, is going to own America because autocracies can make quick decisions." The president did not elaborate on what was meant by "own. For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. ThoughtCo. 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. 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. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. As a Premium user you get access to background information and details about the release of this statistic. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. 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. Does paying off all debt increase credit score? While some states have strict laws in place, others are more open to foreign investments. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). That figure was$30.5trillion as of June 30, 2022. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. And its findings may be surprising to some. Who owns America? Hint: It's not China - CNN The resulting loss of export business would lead to a major unemployment crisis in China. The Pentagon released a list of 20 companies that it says are owned or controlled by Communist China's military and operate in the US - including tech giant Huawei, according to a report. Owning U.S. Treasury notes helps China's economy grow. Anyone can buy U.S. debt. ", 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. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. 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 . That makes Chinese exports cheaper than American-made goods, increasing sales. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. TreasuryDirect. Market data provided by Factset. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. 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. ", U.S. Department of the Treasury. This includes the Federal Reserve, which already owns six times as much debt as China. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. Haier bought GE for $5.4 billion, a recording breaking sum at that time. 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. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. by Jamie Lutz This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. ", 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. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. All rights reserved. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. 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. The USDA reports that the changes in pasture and crop land holdings since 2009 were mostly due to foreign-owned wind companies signing or terminating long-term leases. China held 1.1 trillion U.S. dollars in U.S. securities. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. 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. U.S. Department of the Treasury. How much US debt does China own and why is it important? The hardware brand is a publicly-traded company that does not have a majority shareholder. How Much Land Does China Own? | askBAMLand The Chinese government uses U.S. dollars it has on hand to buy Treasurys. 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 controlof potentially life-saving medicine. To use individual functions (e.g., mark statistics as favourites, set Longley, Robert. Nations borrowing from each other may be as old as the concept of money. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Legal Statement. 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. Disney is in no way owned by Chinese interests in terms of shareholders. Of the 109 countries that own U.S. agricultural land, China ranks No. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? 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. 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.
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