Of the 109 countries that own U.S. agricultural land, China ranks No. 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. 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. National Association of Realtors. (July 18, 2022). The first and most important is that China wants its currency, the yuan, pegged to the dollar. 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 . Amanda Jackson has expertise in personal finance, investing, and social services. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. How Much Is the Per Capita Money Supply in the U.S.? 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. Powered and implemented by FactSet Digital Solutions. Definition and Analysis, What Is National Debt and Where It Fits Within the Economy, Alexander Hamilton and the National Economy, The History of US Government Financial Bailouts, What Was the Open Door Policy in China? Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. "China's Gold Market: Progress and Prospects," Page 2. 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). ", Congress.gov. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. 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. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. The largest holder of U.S. debt is the United States government. Before June 2010, Treasury reports showed that China held about $843 billion in debt. 2021 by the Center for Strategic and International Studies. These foreign interests are pretty smart. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. Citing staff shortages, the Department of Agriculture didnt penalize foreign parties for violating reporting rules from 2015 to 2018, prompting 28 lawmakers to criticize the departments complete lack of accountability and oversight Monday in a letter obtained by the Wall Street Journal. Agricultural Land. Even if these bills had passed, they would have strengthened oversight on purchases of U.S. companies, not agricultural land specifically, leaving most land acquisitions unregulated. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. U.S. consumers benefit from low consumer prices. Control of 8,000-plus of American theater screens and other media platforms allows China to project "soft power" and block unflattering depictions of the Chinese government from being presented, both in terms of creative production and mass distribution. "Debt Position and Activity Report, June 2017," Page 1. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. The bill, which is yet to move through the House, would necessitate that "an issuer must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the issuer has retained a foreign public accounting firm not subject to inspection by the board. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. Congress can then increase the federal spending that spurs U.S. economic growth. Data cover both foreign-owned (29.1 million acres) and U.S. All rights reserved. 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. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). It amounted to about 192,000 of the. 18, far behind No. 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. They use different business structures to further conceal it.. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. How do I know if my stimulus was deposited? As its exports decline, China is less able to invest in U.S. Treasurys. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. How much of the U.S. land does China own? China is taking steps to make its currency, the yuan, transition to a global currency. Each bill, bond, and note represents ownership in U.S. debt. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. "China's Currency Policy," Page 1. The greatest share is in Texas, with over 4.4 million acres, followed by Maine (3.3 million acres) and Alabama (1.8 million acres). What Would Happen if China Were to Call In Its Debt? Learn more about how Statista can support your business. This is partly because Japan is seen as a much friendlier nation and because Japans economy has been growing more slowly than Chinas over the last several years. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. Discover the current debt ceiling and its economic impact. 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 receives these dollars from Chinese companies that receive them as payments for their exports. That made the yuan more attractive to forex traders in global markets. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. 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. 1616 Rhode Island Avenue, NW You only have access to basic statistics. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. 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. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. 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. companies.". 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. It has held up to $1.3 trillion of U.S. debt. The resulting loss of export business would lead to a major unemployment crisis in China. 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. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. See Media Page for more interview, contact, and citation details. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. Profit from the additional features of your individual account. China also became the world's biggest exporter in 2009. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. U.S. Department of the Treasury. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. "We TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. Statista. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. The United States owes China approximately $980.8 billion as of May 2022. That figure was$30.5trillion as of June 30, 2022. TreasuryDirect. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. 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.. 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. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. "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. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Q3: What regulations are currently in place? This has been common practice for many countries ever since the Bretton Woods Conference in 1944. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. How Much Money Does the U.S. The . 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. Show publisher information 2023 FOX News Network, LLC. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. To use individual functions (e.g., mark statistics as favourites, set Land grabbingwhen a government, company, or other entity purchases large swathes of land in another countrycan affect local land rights and agricultural production, sometimes putting local food security at risk. 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. Appliances (technology), IBMP.C. 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. Q2: What threats do foreign acquisitions of U.S. farmland pose? Anyone can buy U.S. debt. Gates is No. 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. China's Large Position in U.S. Treasuries. Access to this and all other statistics on 80,000 topics from, Show sources information 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. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. Of that, 195,000 acres, worth almost $2 billion when purchased, are owned by 85 Chinese investors, which could be individuals, companies or the government. You've successfully subscribed to this newsletter! For its part, China owned 191,000 acres worth $1.9 billion as of 2019. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. As of 2019, a total of 191,000 acres of American land were owned by China. Contractionary Monetary Policy. Her modest, two-story white farmhouse has . 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). Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. Register in seconds and access exclusive features. 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. [Online]. This also reduces the purchasing power of Chinese earners. 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 has steadily accumulated U.S. Treasury securities over the last few decades. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. How Did the U.S. National Debt Get So Big? or redistributed. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. But the contrition paid off: F9 grossed $136 million in China its first weekend, nearly double its . As a Premium user you get access to the detailed source references and background information about this statistic. 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. To do that, China had to loosen its peg to the dollar. Legal Statement. Japan held 1.24 trillion U.S. dollars. How Much U.S. Debt Does China Really Own? "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." In return, American consumers get cheap Chinese products and incoming investment capital. Available: https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022, Available to download in PNG, PDF, XLS format, Cross-border commercial real estate investment in the United States, Origin of foreign residential buyers in the U.S. 2016-2018, Cross-border commercial real estate investments in the U.S. 2018, by country, Number of commercial properties in the U.S. 2018, by investor country, Property purchased by foreign buyers in U.S. 2009-2022, by type of area, Share of commercial space leased by foreign clients U.S. 2018, by size, Share of commercial space leased by foreign clients U.S. 2018, by lease term, Perception of real estate market among foreign investors in U.S. 2016-2018, Perception of U.S. real estate prices among foreign buyers 2018, Reasons why foreign buyers don't buy real estate in the U.S. 2019, Share of Chinese buyers of residential property in the U.S. 2011-2022, Total residential property sales to Chinese buyers in the U.S. 2010-2022, Total number of residential properties bought by Chinese buyers in the U.S. 2010-22, Average purchase price of residential property by Chinese buyers in the U.S. 2010-22, Median purchase price of residential property by Chinese buyers in the U.S. 2010-2022, Share of CRE investments from China/Hong Kong in the U.S. 2011-2017, by investor type, Value of China/Hong Kong CRE investments made in the U.S. 2011-2017, Share of Canadian buyers of residential property in the U.S. 2011-2022, Total residential property sales to Canadian buyers in the U.S. 2010-2022, Average purchase price of residential property by Canadian buyers in the U.S. 2010-22, Median purchase price of residential property by Canadian buyers in the U.S. 2010-22, Share of UK buyers of residential property in the U.S. 2011-2022, Total residential property sales to buyers from the UK in the U.S. 2010-2021, Total number of residential properties purchased by UK buyers in the U.S. 2010-2021, Average purchase price of residential property by UK buyers in the U.S. 2010-2021, Median purchase price of residential property by UK buyers in the U.S. 2010-2021, Total residential property sales to Indian buyers in the U.S. 2010-2022, Average purchase price of residential property by Indian buyers in the U.S. 2010-2022, Median purchase price of residential property by Indian buyers in the U.S. 2010-2022, Share of Mexican buyers of residential property in the U.S. 2011-2022, Total residential property sales to Mexican buyers in the U.S. 2010-2022, Total number of residential properties bought by Mexican buyers in the U.S. 2010-2022, Average purchase price of residential property by Mexican buyers in the U.S. 2010-22, Median purchase price of residential property by Mexican buyers in the U.S. 2010-2022, Average price of residential property in France 2022, by property type, Breakdown of housings in France 2020, by square meter price, Average price of rental flats per square meter in France 2020, Average rent price for apartments in the largest French cities 2022, Value of commercial real estate investment in France 2021-Q1 2022, by type, Origin of major foreign buyers of U.S. residential property in 2022, Share of Brazilian buyers of residential property in the U.S. 2011-2020, Share of German buyers of residential property in the U.S. 2011-2020, Housing purchase transactions volume Jeju, South Korea 2009-2021, Housing transactions volume Busan, South Korea 2009-2021, Housing transactions volume Gyeonggi, South Korea 2009-2021, Housing purchase transactions volume Gyeonggi, South Korea 2009-2021, Housing transactions volume Jeju, South Korea 2009-2021, Realtors' sources of referrals for foreign residential property buyers U.S. 2022, Apartment purchase transactions volume Incheon, South Korea 2009-2021, Find your information in our database containing over 20,000 reports, Chinese buyers were responsible for only six percent of all sales to foreigners, bought the most U.S. residential property, property sales to foreign buyers peaked at 153 U.S. dollars in 2017. 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. The hardware brand is a publicly-traded company that does not have a majority shareholder. "Debt to the Penny. 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. What US companies are now owned by China? "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. A government bond is issued by a government at the federal, state, or local level to raise debt capital. ), after gaining momentum seeded in farm states. Market data provided by Factset. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. 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. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. As a Premium user you get access to background information and details about the release of this statistic. ", U.S. Department of the Treasury. As a major function of its monetary policy, China's central bank, the Peoples Bank of China (PBOC), actively works to prevent this imbalance between the U.S. dollar and renminbi in local markets. Then you can access your favorite statistics via the star in the header. China has the second-greatest amount of U.S. debt held by a foreign country. Missouri had formerly banned all foreign ownership of agricultural land in the state, but one week before Shuanghui took over Smithfield, that rule changed to allow foreign entities to own up to 1 percent of the states farmland. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. 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 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. 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 concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. China also is liberalizing its control of the yuan, also called the "renminbi." CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. Individuals can buy and sell U.S. debt, as can central banks for countries like China. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. "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. Haier bought GE for $5.4 billion, a recording breaking sum at that time. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. 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. Treasury securities are freely traded around the world. That makes Chinese exports cheaper than American-made goods, increasing sales. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. Definition and Impact. Quote and Meaning, What Was the Eisenhower Doctrine? Amazon founder Jeff Bezos comes in at No. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. This is just a small part of the 30 . 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. ", The World Bank. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. 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). 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. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Its economy grew more than 10% for the three decades before the 2008 recession. As a result, the public does not have a complete picture of which foreign entities own how much U.S. farmland or what the land is being used for. 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.