how much of america is owned by china? how much of america is owned by china?

Its also a small percentage of the nearly 900 million acres of total American farmland. 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. As its exports decline, China is less able to invest in U.S. Treasurys. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). ", 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. That would hurt China's competitiveness by raising the yuans value relative to the dollar. WH Groups shareholders include many large U.S.-based financial institutions.". "Major Foreign Holders of Treasury Securities. Walmart does not own Dollar Tree as of 2022. What is the highest credit limit for Chase Sapphire? A government bond is issued by a government at the federal, state, or local level to raise debt capital. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. How Much Money Does the U.S. Former Vice President Mike Pence speaks during an event. Amanda Jackson has expertise in personal finance, investing, and social services. Currently, you are using a shared account. 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. 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. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Continuing a trend that began early in 2021, China's portfolio of U.S. government debt in May dropped to $980.8 billion, according to Treasury Department data released Monday. 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). The first and most important is that China wants its currency, the yuan, pegged to the dollar. 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. 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. That makes Chinese exports cheaper than American-made goods, increasing sales. "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. 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. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. In return, American consumers get cheap Chinese products and incoming investment capital. Second, the Chinese rely on American markets to buy Chinese-produced goods. "GDP growth (Annual %) - China. 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. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. 5. All Rights Reserved. Of that, 195,000 acres, worth almost $2 billion when purchased, are. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. 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. ", United States Department of Treasury. 1 That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. 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. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. As economists point out, other creditors are likely to get in line to buy up Chinas share of the debt, including the Federal Reserve, already the owner of twice as much of the U.S. debt than China has ever owned. Its research is nonpartisan and nonproprietary. It allows the U.S. Treasury to borrow more at low rates. See Media Page for more interview, contact, and citation details. You can learn more about the standards we follow in producing accurate, unbiased content in our. 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. 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. Discover the current debt ceiling and its economic impact. Furthermore, policymakers have signaled no efforts to improve state- or national-level information on foreign purchases of U.S. farmland, leaving the true picture obscured. As a presidential candidate in 2019, Warren said she would support a national version of Iowas law along with safeguards against foreign investors using fake American buyers to circumvent the rules. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. That data also shows that the. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . 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. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. 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. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. Manuel Balce Ceneta/AP Photo. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. I'm a reporter for Forbes' explainers and trends team. 41 on The Land Reports 2022 list of Americans who own the most land. 2023 Center for Strategic & International Studies. 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 2017, the United States produced zero rare earth minerals. Countries with lower currency values export more, since their products cost less when sold in foreign countries. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. 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. If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive. Nonagricultural land (such as homesteads and roads) accounted for 2%. 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. 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. Chinese billionaire and businessman Wang. 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. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. Then you can access your favorite statistics via the star in the header. Secondly, China needs American markets to buy their exported goods. 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. The ideal entry-level account for individual users. Is it better to pay off credit card or pay down? 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. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. That's a decline of. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. 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. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Market data provided by Factset. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. (2022). "Bretton Woods-GATT, 19411947.". For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. Disney is in no way owned by Chinese interests in terms of shareholders. It could be bigger," he surmised. Contractionary Monetary Policy. Historically, between 20,000 and 40,000 residential properties were bought by. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. Definition and Impact. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. The last significant increase in acres occurred between 2012 and 2013 . These foreign interests are pretty smart. The largest holder of U.S. debt is the United States government. 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. ", 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. The resulting loss of export business would lead to a major unemployment crisis in China. Most countries want their currency values to fall so they can win global currency wars. 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. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. Securities. ", The World Bank. This amount is subject to market fluctuations. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. 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. Stephen Gandel. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. You've successfully subscribed to this newsletter! 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? The . This includes the Federal Reserve, which already owns six times as much debt as China. 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. The Chinese government's theft of intellectual property has been an open secret for decades. China holds more than $1 trillion of the U.S. national debt. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. Haier bought GE for $5.4 billion, a recording breaking sum at that time. Chinas demand for Treasurys helps keep U.S. interest rates low. "How Much Money Does the World Owe China? U.S. Department of the Treasury. AMC. 3 1. On the state level, regulations vary. 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. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. How much of Chinese industry is state-owned? 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. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. (ChinaOwnsUs campaign). Much of the rest of the debt is owned by individual investors, corporations, and other public entities. 18, far behind No. In 2019, it grew at 6.1%, an even more sustainable rate. 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 . Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. 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. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. 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. China's low-cost competitive strategy seems to be working. 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). Mexico has gone from 38% to 42%. Chart. 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. 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. What is the best way to liquidate stocks? "Report on Foreign Portfolio Holdings of U.S. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. 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 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. 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. 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. "Major Foreign Holders of Treasury Securities.". Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. 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 control of. 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 . "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. Congressional Research Service. 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. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. China drew some headlines in 2013 and 2014 for buying up a lot of gold to store in its bank vaults, but the real safety net for the yuan is the worldwide belief in the dollar. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. 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. 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. These include white papers, government data, original reporting, and interviews with industry experts. As a Premium user you get access to background information and details about the release of this statistic. All rights reserved. "We In addition to federal action, some states, like Arizona, could do more to protect their local resources and communities from exploitation by domestic and foreign entities. 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. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 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. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. How do I know if my stimulus was deposited? 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.. or redistributed. What Would Happen if China Were to Call In Its Debt? Quotes displayed in real-time or delayed by at least 15 minutes. To do that, China had to loosen its peg to the dollar. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. So, Lowes operates independently of Walmart. Longley, Robert. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. Q1: Where and why are foreign entities purchasing farmland in the United States? 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. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. World Gold Council. This material may not be published, broadcast, rewritten, Are you interested in testing our business solutions? The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. Breaking Down the US Debt and Who Owns It. "Debt Position and Activity Report, June 2022," Page 1. This compensation may impact how and where listings appear. 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. "GDP Growth (Annual %) - China. But, exactly how much does the nation own? Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade.