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"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. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. 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. That data also shows that the. 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. Federal Reserve Bank of St. Louis. It receives these dollars from Chinese companies that receive them as payments for their exports. Quotes displayed in real-time or delayed by at least 15 minutes. Christmas in Mainland China is not a public holiday and is not related to religion at all. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. China's economic growth has slowed over the years. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The National Young Farmers Coalition (NYFC) anticipates that two-thirds of farmland will change hands over the next decade as farmers retire, meaning that more land could become available for foreign purchase. Secondly, China needs American markets to buy their exported goods. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. 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. 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. As a Premium user you get access to the detailed source references and background information about this statistic. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. AMC. 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 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. 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. "Major Foreign Holders of Treasury Securities. 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). A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. "Report on Foreign Portfolio Holdings of U.S. "How Much U.S. Debt Does China Really Own?" A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. Its economy grew more than 10% for the three decades before the 2008 recession. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. 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. 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. China's Large Position in U.S. Treasuries. This helps inflate the value of the dollar. On the state level, regulations vary. 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. Powered and implemented by FactSet Digital Solutions. 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 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. 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. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? But the contrition paid off: F9 grossed $136 million in China its first weekend, nearly double its . These are accounts dedicated to Social Security, Medicare, and other entitlements. 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. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. WH Group is a publicly-traded company with shareholders around the world. 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. ", The World Bank. Billions of dollars flow into the U.S. from China every year. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. 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. Discover the current debt ceiling and its economic impact. Longley, Robert. She is a library professional, transcriptionist, editor, and fact-checker. It amounted to about 192,000 of the. "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. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. The push to drain Chinas influence from the U.S. economy has reached Americas farm country, as congressional lawmakers from both parties are looking at measures to crack down on foreign purchases of prime agricultural real estate. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. Policymakers should, instead, consider the many threats facing the future of the U.S. food system and ensure that current and aspiring farmers have the resources they need to secure long-term U.S. food production, starting with access to affordable farmland. 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.. The products are still made in the USA, but the decisions are made in China. Are you interested in testing our business solutions? The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). Manuel Balce Ceneta/AP Photo. All Rights Reserved. You can learn more about the standards we follow in producing accurate, unbiased content in our. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. It's more of a novelty day like Valentine's Day, rather than a religious celebration. World Gold Council. 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. 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. "Debt to the Penny. 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. How much do banks charge to manage a trust? Countries Who Own The Most Acres U.S. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. As a Premium user you get access to background information and details about the release of this statistic. Owe China? Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. Use Ask Statista Research Service. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. The offers that appear in this table are from partnerships from which Investopedia receives compensation. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. It could be bigger," he surmised. But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Times Square billboard endeavors to warn of creeping Chinese influence. All rights reserved. ", 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. Walmart is founded and owned by the Walton family. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. 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. 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. And its findings may be surprising to some. companies.". 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. 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. China holds more than $1 trillion of the U.S. national debt. 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. . So, Lowes operates independently of Walmart. Amazon founder Jeff Bezos comes in at No. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. All rights reserved. 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. In 2011, the total U.S. debt stood at $14.3 trillion. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. "Bretton Woods-GATT, 19411947.". As its exports decline, China is less able to invest in U.S. Treasurys. TreasuryDirect. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. 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. TreasuryDirect. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. Interest on the National Debt and How It Affects You, US Debt by President: By Dollar and Percentage, US Budget Deficit by Year Compared to GDP, the National Debt, and Events, Chinas Economic Slowdown and How It Affects You, China's Economy and Its Effect on the U.S. Economy, China's Currency, the Yuan, and How It Affects You, How the Yuan Could Become a Global Currency, Debt Ceiling Dictionary: Your Guide to the Jargon, Major Foreign Holders of Treasury Securities, Report on Foreign Portfolio Holdings of U.S. Securities, Major Foreign Holders of Treasury Securities [2000-2020], Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States. 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 World Bank. China does not publish the. 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.. 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. National Association of Realtors. 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. 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. Jamie Lutzisaresearchassociatewiththe Global Food Security Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Caitlin Welsh is the director of the CSIS Global Food Security Program. 1 U.S. Department of the Treasury. 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. They use different business structures to further conceal it.. 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. 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. That makes Chinese exports cheaper than American-made goods, increasing sales. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade.