Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. 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 source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. China does not publish the. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. TreasuryDirect. That changed with the USMCA. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. How do I know if my stimulus was deposited? In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. Owning U.S. Treasury notes helps China's economy grow. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Quote and Meaning, What Was the Eisenhower Doctrine? July 20, 2021 Ryan Morgan U.S. lawmakers are acting with increased concern as Chinese purchasers are buying tens of thousands of acres of U.S. farmland. "Major Foreign Holders of Treasury Securities. 2 Which Country Owes the Most Money to China? Powered and implemented by FactSet Digital Solutions. 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. 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$. You can only download this statistic as a Premium user. Why China Buys U.S. Debt With Treasury Bonds - Investopedia On the other hand, if China were to call in its debt, the demand for the dollar could plummet. ", U.S. Department of the Treasury. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. China has the second-greatest amount of U.S. debt held by a foreign country. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. 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. and Caitlin Welsh. (July 18, 2022). The Netherlands is the second largest foreign owner with 4.6 million acres. A repurchase agreement is a form of short-term borrowing for dealers in government securities. ", Congress.gov. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . You only have access to basic statistics. 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. 04 Mar 2023 03:14:21 Here's a quick and fascinating breakdown by total. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. The remaining 38 percent is held by entities from almost a hundred other countries. Use Ask Statista Research Service. Greed Is Good or Is It? Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. They use different business structures to further conceal it.. But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). Market data provided by Factset. 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. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. 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. China does not publish the figures on its international lending. As of the start of 2020, Chinese investors owned about 192,000 acres of U.S. agricultural land valued at about $1.9 billion, according to Politico. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek 2021 by the Center for Strategic and International Studies. 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. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. Legal Statement. Show publisher information More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. Then you can access your favorite statistics via the star in the header. Some U.S. lawmakers are pushing back amid the coronavirus fallout, which ignited an initial panic over concerns of critical medical shortages and Beijing's threats to withhold the needed goods. These include white papers, government data, original reporting, and interviews with industry experts. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. Owe China? WH Groups shareholders include many large U.S.-based financial institutions.". This dollar collapse could disrupt international markets even more than the 2008 financial crisis. The renewed focus on curbing foreign farm purchases comes as Biden and Agriculture Secretary Tom Vilsack roll out a series of actions to bolster the food supply chain, following major disruptions caused by the pandemic. As its exports decline, China is less able to invest in U.S. Treasurys. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. 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. 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. World Gold Council. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. Please create an employee account to be able to mark statistics as favorites. I'm a reporter for Forbes' explainers and trends team. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM Even so, large land purchases present various localized concerns in the places where they occur. 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. China "Owns" Us: How the Chinese Are Buying Up America "GDP Growth (Annual %) - Japan, China.". WH Group is a publicly-traded company with shareholders around the world. "How Much Money Does the World Owe China? 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. 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. And its findings may be surprising to some. So, Lowes operates independently of Walmart. This material may not be published, broadcast, rewritten, They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. 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. Dalian Wanda purchased a majority stake in AMC for $2.6 billion, making AMC the largest theater operator at the time, according to a report from Reuters. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. 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. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. Of the 109 countries that own U.S. agricultural land, China ranks No. While a large portion of Smithfield pork was already being exported to China prior to the acquisition, the Covid-19 crisis raised concerns about Chinese control of U.S. food supply chains. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. The economy of China is driven by manufacturing and exporting. Debt to the Penny., U.S. Department of the Treasury. "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. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. The United States owes China approximately $980.8 billion as of May 2022. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. US media outlets received millions of dollars from China to sell its Currently, you are using a shared account. National Association of Realtors. 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. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. How Much Is the Per Capita Money Supply in the U.S.? 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. Please do not hesitate to contact me. 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.. 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. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. 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. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. It receives these dollars from Chinese companies that receive them as payments for their exports. Securities. This material may not be published, broadcast, rewritten, or redistributed. 'American Soil' Is Increasingly Foreign Owned : NPR 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. You can learn more about the standards we follow in producing accurate, unbiased content in our. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. China held 1.1 trillion U.S. dollars in U.S. securities. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. Given the state of the AFIDA data, it seems it is doing neither. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. 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. Forbes. "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. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. ", The World Bank. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. Are chinese companies state owned? 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. On Friday, Starwood Hotels agreed to be acquired by Anbang, a Chinese insurance company that is rapidly buying up U.S. hotels, for over $13 billion . "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. These are accounts dedicated to Social Security, Medicare, and other entitlements. 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? House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. 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. "Major Foreign Holders of Treasury Securities [2000-2020]. 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. How much of the United States does China really own? Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. The United States owes China approximately $980.8 billion as of May 2022. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. 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. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. China is buying up American farms. Washington wants to crack - POLITICO Chart. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. 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. Despite holding little U.S. land, China remains focus of foreign Alibaba handles more business than any other e-commerce company. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. 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. 1616 Rhode Island Avenue, NW 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 . All rights reserved. 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. 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. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. Washington, DC 20036. Definition and Impact. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Are you interested in testing our business solutions? However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. "China's Gold Market: Progress and Prospects," Page 2. China's economy would suffer along with everyone else's. With an aging U.S. farmer population and not enough new farmers able to enter the industry, more land will inevitably be converted to other uses or sold to foreign and domestic investors unless policies are put in place to support the next generation of farmers. 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). "How Much U.S. Debt Does China Really Own?" Smithfield is vertically integrated and owns all aspects of its supply chain, meaning that WH Group now controls a significant portion of U.S. pork production and revenue in addition to farmland. 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. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? 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. 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. 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. How much do banks charge to manage a trust? 1 Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Can you rollover Roth 401k to Roth IRA while still employed? Amanda Jackson has expertise in personal finance, investing, and social services. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. 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. This compensation may impact how and where listings appear. ), after gaining momentum seeded in farm states. China holdings of U.S. debt fall below $1 trillion for the first time
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