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"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. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. 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. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. This also reduces the purchasing power of Chinese earners. 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. ", International Monetary Fund. ", Congress.gov. As its exports decline, China is less able to invest in U.S. Treasurys. 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. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. What Would Happen if China Were to Call In Its Debt? 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. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. ", U.S. Department of the Treasury. China owns roughly $1.08 trillion worth of U.S. debt. "Frequently Asked Questions About the Public Debt. All rights reserved. Research Associate, Global Food Security Program. It receives these dollars from Chinese companies that receive them as payments for their exports. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Please do not hesitate to contact me. Quote and Meaning, What Was the Eisenhower Doctrine? Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. Before June 2010, Treasury reports showed that China held about $843 billion in debt. 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. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. Amazon founder Jeff Bezos comes in at No. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. 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. Investopedia does not include all offers available in the marketplace. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. 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. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at 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. 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. 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. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. 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. All rights reserved. Historically, between 20,000 and 40,000 residential properties were bought by. Chart. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. This compensation may impact how and where listings appear. Mutual Fund and ETF data provided by Refinitiv Lipper. While around 3.2% of the national debt isn't exactly insignificant, the Treasury Department has had no problems finding buyers for its products even after a rating downgrade. The resulting loss of export business would lead to a major unemployment crisis in China. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Here's a quick and fascinating breakdown by total. Individuals can buy and sell U.S. debt, as can central banks for countries like China. 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 . ", United States Department of Treasury. China is taking steps to make its currency, the yuan, transition to a global currency. Countries with lower currency values export more, since their products cost less when sold in foreign countries. Agricultural Land. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. 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. How do I know if my stimulus was deposited? "Federal Debt Held by Federal Reserve Banks. 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. 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. 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. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. The value will change whenever China trades Treasury securities or when the prices of those bonds change. July 18, 2022. While some states have strict laws in place, others are more open to foreign investments. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. U.S. Debt to China: How Much Is It, and Why? The US National Debt and How It Affects You. For example, foreign investors can set up limited liability companies in the U.S. and designate an American owner to circumvent the reporting requirements while still controlling the operation behind the scenes, said Joe Maxwell, president of the progressive advocacy group Family Farm Action. U.S . or redistributed. 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. Q3: What regulations are currently in place? Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. Discover the current debt ceiling and its economic impact. China does not publish the figures on its international lending. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. 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. That made the yuan more attractive to forex traders in global markets. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. China's position as the largest foreign holder of U.S. debt gives it some political leverage. National Debt or Federal Deficit? This includes the Federal Reserve, which already owns six times as much debt as China. The ideal entry-level account for individual users. Among all of those foreign creditors to which America owes money, China led the way at $1.17 trillion, followed by Japan, at $1.07 trillion as of January 2018. 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. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. More than 200 foreign firms mostly Chinese with a combined market capitalization of almost $2 trillion are said to not be meeting this standard; so their stocks are traded, but U.S. investors have limited insight into what is going on internally with the companies. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. 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. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. 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. With the U.S. dollar considered one of the safest and most stable currencies in the world, dollar-pegging helps the Chinese government maintain the stability and value of the yuan. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. 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. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. 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 . These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. In 2019, it grew at 6.1%, an even more sustainable rate. The largest holder of U.S. debt is the United States government. "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. What is the highest credit limit for Chase Sapphire? But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. The reality is very different than the rhetoric. 18, far behind No. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. Walmart owns no shares. 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. 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. 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. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. What US companies are now owned by China? 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). In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions What is the best way to liquidate stocks? Q5: What is the real threat to U.S. food security? World Gold Council. Are you interested in testing our business solutions? Japan held 1.24 trillion U.S. dollars. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. 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. Learn more about how Statista can support your business. 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. China's low-cost competitive strategy seems to be working. (2022). Concern about Chinese purchases of U.S. agricultural land increased in late January when the China-based Fufeng Group Ltd. was prevented from building a cornmill on land close to a North Dakota Air Force base after officials called it a security risk. Anyone can buy U.S. debt. 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. Q1: Where and why are foreign entities purchasing farmland in the United States? (2021, September 2). That figure was$30.5trillion as of June 30, 2022. Powered and implemented by FactSet Digital Solutions. China's Large Position in U.S. Treasuries. How much of Chinese industry is state-owned? We also reference original research from other reputable publishers where appropriate. "Major Foreign Holders of Treasury Securities. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. 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 . 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. Access to this and all other statistics on 80,000 topics from, Show sources information ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. National Association of Realtors. Alibaba handles more business than any other e-commerce company. 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. What's the Difference? Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022."