how much of america is owned by china?

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. "Major Foreign Holders of Treasury Securities. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. Read our. The reality is very different than the rhetoric. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. 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. The economy of China is driven by manufacturing and exporting. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. National Association of Realtors. That data also shows that the. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. It's more of a novelty day like Valentine's Day, rather than a religious celebration. China needs this growth to raise its low standard of living. China's position as the largest foreign holder of U.S. debt gives it some political leverage. Congress can then increase the federal spending that spurs U.S. economic growth. "GDP Growth (Annual %) - China. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. They use different business structures to further conceal it.. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. "How Much Money Does the World Owe China? companies.". United States Treasury Fiscal Data. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. That figure was$30.5trillion as of June 30, 2022. 5. Chinas demand for Treasurys helps keep U.S. interest rates low. I would suggest that we sit down and we work through it so we can accomplish our objective, but do it in a way that is sensitive to all those who might be somewhat offended by the approach.. 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 U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. The government now provides affordable housing by subsidizing commercial housing purchases or by offering low-rent public (social) housing to middle- and low-income families. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. 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. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). 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. 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. 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. From 2016, the estimates include only residential transactions. "In 2017, the United States produced zero rare earth minerals. The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. Of the 109 countries that own U.S. agricultural land, China ranks No. Even so, large land purchases present various localized concerns in the places where they occur. ", United States Department of Treasury. (Smithfield said in a later statement pertaining to their ownership structure that they are "a U.S. company that provides more than 40,000 American jobs and partners with thousands of American farmers. Definition and Impact. And Human Rights Watch has written that China is an'existential threat' to human rights." On the state level, regulations vary. What Would Happen if China Were to Call In Its Debt? 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. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. ", International Monetary Fund. Legal Statement. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. As a Premium user you get access to the detailed source references and background information about this statistic. 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 total has grown by an average 2.3 million acres per year since 2015, according to USDA data. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. division (technology), Legendary Entertainment Group (entertainment), Motorola Mobility (technology), Nexteer Automotive (automotive), Riot Games (entertainment), Smithfield Foods (food), Teledyne Continental Motors and Mattituck Services (aerospace), Terex Corp. (machinery), Triple H Coal (mining), Zonare Medical Systems (health care). This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. This helps inflate the value of the dollar. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. Please create an employee account to be able to mark statistics as favorites. Representative Grace Meng expressed concern that the amendment could fuel already rising anti-Asian hate, and the USDA and advocacy groups have pointed out that the USDA does not have the authority to intervene in private land deals. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. "Major Foreign Holders of Treasury Securities [2000-2020]. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. 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). But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. What's the Difference? 18, far behind No. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. Its economy grew more than 10% for the three decades before the 2008 recession. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. 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. 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. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. Longley, Robert. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. 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. (Other Hollywood companies are partly or wholly owned by Chinese interests We know that education is one of the most common reasons that Chinese families purchase real estate in the US, he said. 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. "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. 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. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Disney is in no way owned by Chinese interests in terms of shareholders. 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. Use Ask Statista Research Service. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. "Debt to the Penny. The value will change whenever China trades Treasury securities or when the prices of those bonds change. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. 2023 FOX News Network, LLC. Learn more about how Statista can support your business. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? China also is liberalizing its control of the yuan, also called the "renminbi." However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. ", 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. Chinese billionaire and businessman Wang. Longley, Robert. The PBOC can print renminbi as needed. A repurchase agreement is a form of short-term borrowing for dealers in government securities. 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. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. That made the yuan more attractive to forex traders in global markets. Subsequently, China and other international players would be obligated to accede to an audit that can be reviewed by the nonprofit Public Company Accounting Oversight Board, which oversees audits of all U.S. companies that endeavor to raise money in public markets. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. Please do not hesitate to contact me. What is the highest credit limit for Chase Sapphire? Research Associate, Global Food Security Program. U.S.-based companies also own over nine million acres in other countries. That changed with the USMCA. In addition, many economists contend that the reported U.S. debt should include at least another $120 trillion in unfunded future liabilitiesmoney the government does not currently have but is legally obligated to pay people in the future. The hardware brand is a publicly-traded company that does not have a majority shareholder. Owe China? This includes the Federal Reserve, which already owns six times as much debt as 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 . 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. "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. Most states, like Texas and Maine, have no restrictions on foreign ownership of land, contributing to the large amount of farmland that is under foreign control in these states. ", Harvard Business Review. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. China's low-cost competitive strategy seems to be working. 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. So, Lowes operates independently of Walmart. "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. 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. 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. Breaking Down the US Debt and Who Owns It. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. See Media Page for more interview, contact, and citation details. A2: On a large scale, these acquisitions do not represent a substantial enough portion of food production in the United States to threaten national food security. or redistributed. The Chinese government's theft of intellectual property has been an open secret for decades. 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. In return, American consumers get cheap Chinese products and incoming investment capital. 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.. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. Can you rollover Roth 401k to Roth IRA while still employed? 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. All rights reserved. No, China does not own Walmart. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. Advocacy groups like the National Family Farm Coalition argue that the larger threat to national security is corporate capture of U.S. land resources, whether those corporations are U.S.- or foreign-owned. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. The . 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. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). 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. Walmart does not own Dollar Tree as of 2022. For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. 04 Mar 2023 03:14:21 But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. statistic alerts) please log in with your personal account. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. ", The World Bank. 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. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. These are accounts dedicated to Social Security, Medicare, and other entitlements. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. China is also responding to accusations of manipulation. These include white papers, government data, original reporting, and interviews with industry experts. Times Square billboard endeavors to warn of creeping Chinese influence. 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. Quotes displayed in real-time or delayed by at least 15 minutes. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." Even at a slow pace, dollar demand would drop. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. The United States owes China approximately $980.8 billion as of May 2022. 3 1. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. 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. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. 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. 2 Which Country Owes the Most Money to China? Is Americas Debt to China Really So Bad? 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. China holds more than $1 trillion of the U.S. national debt. "General Government Gross Debt.". RT @lillybug000: How much more does any American have to see to realize our government is owned by China. China holds more than $1 trillion of the U.S. national debt. 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.. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. You need a Statista Account for unlimited access. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. and Caitlin Welsh. (2021, September 2). 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. 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. Quotes displayed in real-time or delayed by at least 15 minutes. China has the second-greatest amount of U.S. debt held by a foreign country. The first and most important is that China wants its currency, the yuan, pegged to the dollar. Countries with lower currency values export more, since their products cost less when sold in foreign countries. Debt to the Penny., U.S. Department of the Treasury. Access to this and all other statistics on 80,000 topics from, Show sources information Investopedia requires writers to use primary sources to support their work. 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. National Debt or Federal Deficit? It could be bigger," he surmised. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. 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. This has been common practice for many countries ever since the Bretton Woods Conference in 1944.

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