"Bretton Woods-GATT, 19411947.". 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. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. ", U.S. Department of the Treasury. China does not publish the figures on its international lending. Use Ask Statista Research Service. The . 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. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. 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. Smithfield was also in line to receive money from the program, which was created to help U.S. farmers strung by trade retaliation from China and other competitors. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. You only have access to basic statistics. Given the state of the AFIDA data, it seems it is doing neither. According to the Federal Reserve and U.S. Department of the Treasury, foreign countries held a total of 7.03 trillion U.S. dollars in U.S. Treasury securities as of March 2021. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. "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. And Human Rights Watch has written that China is an'existential threat' to human rights." 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 . 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. Walmart is founded and owned by the Walton family. Why China Buys U.S. Debt With Treasury Bonds - Investopedia Q4: What federal solutions are being discussed? "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. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. Treasury securities are freely traded around the world. These include white papers, government data, original reporting, and interviews with industry experts. This material may not be published, broadcast, rewritten, 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. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. While some states have strict laws in place, others are more open to foreign investments. 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. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. (2022). Appliances (technology), IBMP.C. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. How many times does Coca Cola pay dividends? Longley, Robert. 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 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. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. "Major Foreign Holders of Treasury Securities.". US National Debt Clock: How Its Warning Affects You. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. 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. Chart. Its a massive undertaking to verify who really owns [the land], Maxwell said. A paid subscription is required for full access. The Netherlands is the second largest foreign owner with 4.6 million acres. United States Treasury Fiscal Data. 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. As of the end of November, China owned US$1.063 trillion of the total outstanding US government debt issued by the US Department of the Treasury. While around 3.2% of the national debt isn't exactly insignificant, the Treasury Department has had no problems finding buyers for its products even after a rating downgrade. 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? 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. How Much U.S. Debt Does China Really Own? - ThoughtCo On the state level, regulations vary. Owning U.S. Treasury notes helps China's economy grow. 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. China held 1.1 trillion U.S. dollars in U.S. securities. ", 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. Many Americans find the brand appealing because it has a "Made in America" stamp on its products, however, the company has been owned by Chinese company Haier since 2016. 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. "Debt Position and Activity Report, June 2022," Page 1. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. This material may not be published, broadcast, rewritten, or redistributed. You need a Statista Account for unlimited access. National Debt or Federal Deficit? The value will change whenever China trades Treasury securities or when the prices of those bonds change. How Much U.S. Farmland Does China Really Own? More Than Bill GatesAnd 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. Who owns America? Hint: It's not China - CNN 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. Data cover both foreign-owned (29.1 million acres) and U.S. Market data provided by Factset. 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. 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. Federal Reserve Bank of St. Louis. All rights reserved. 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. In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. It has held up to $1.3 trillion of U.S. debt. Nonagricultural land (such as homesteads and roads) accounted for 2%. 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. 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). CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. 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. The Biggest American Companies Now Owned by the Chinese - Yahoo! In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. 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. This amount is subject to market fluctuations. "Debt Position and Activity Report, June 2017," Page 1. Business Solutions including all features. (ChinaOwnsUs campaign). "How Much U.S. Debt Does China Really Own?" China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. How do I know if my stimulus was deposited? All rights reserved. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. 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. China needs this growth to raise its low standard of living. "GDP Growth (Annual %) - China. National Association of Realtors. March 18, 2016, 2:10 PM. 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. Does paying off all debt increase credit score? Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. ), after gaining momentum seeded in farm states. What is the highest credit limit for Chase Sapphire? Q5: What is the real threat to U.S. food security? China is taking steps to make its currency, the yuan, transition to a global currency. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. 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. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. China has the second-greatest amount of U.S. debt held by a foreign country. Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. 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. 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. 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. Longley, Robert. China also became the world's biggest exporter in 2009. And its findings may be surprising to some. Scrutiny of foreign-owned agricultural operations receiving taxpayer subsidies has also been rising in recent years after meatpacking conglomerates like the U.S. subsidiary of Brazilian-owned JBS received millions of dollars under the Trump administrations trade bailout starting in 2018. In 2019, 49 percent of reported foreign-held acreage in the United States was forest land, while 25 percent was crop land, 24 percent was for pasture and other agricultural uses, and 2 percent was for non-agricultural uses (such as homesteads and roads). The last significant increase in acres occurred between 2012 and 2013 . 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. . The debate over farm ownership comes amid broader efforts by Congress and the Biden administration to curb the nations economic reliance on China, especially in key industries like food, semiconductors and minerals deemed crucial to the supply chain. Its economy grew more than 10% for the three decades before the 2008 recession. "GDP Growth (Annual %) - Japan, China.". Chinas demand for Treasurys helps keep U.S. interest rates low. China's Large Position in U.S. Treasuries. Anyone can buy U.S. debt. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. 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. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. 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. Times Square billboard endeavors to warn of creeping Chinese influence. ", 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. 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 . Investopedia does not include all offers available in the marketplace. China's economic growth has slowed over the years. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. All rights reserved. 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. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. World Gold Council. 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 . The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Countries Who Own The Most Acres U.S. The first and most important is that China wants its currency, the yuan, pegged to the dollar. 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. China has become one of the largest economies in the world. Securities. Chinese firms have expanded their presence in American agriculture over the last decade by snapping up farmland and purchasing major agribusinesses, like pork processing giant Smithfield Foods. 41 on The Land Reports 2022 list of Americans who own the most land. "China's Currency Policy," Page 1. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. U.S. Debt to China: How Much Is It, and Why? - The Balance China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. That made the yuan more attractive to forex traders in global markets. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). The ideal entry-level account for individual users. A government bond is issued by a government at the federal, state, or local level to raise debt capital. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. Breaking Down the US Debt and Who Owns It. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. This statistic is not included in your account. 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. The United States currently produces more than enough food per capita, even after adjusting for food waste. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Center for Strategic and 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. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. U.S. Department of the Treasury. Other foreign holders included oil-exporting countries and Caribbean banking centers. 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. ", Harvard Business Review. The buying gorge went from April 2021 to March 2022 and . How America got outmaneuvered in a critical mining race We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Of that, 195,000 acres, worth almost $2 billion when purchased, are. 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. Powered and implemented by FactSet Digital Solutions. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. 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. The top two foreign holders of U.S. debt are Japan and China. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. This helps inflate the value of the dollar. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. | Please do not hesitate to contact me. 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. or redistributed. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. China owns roughly $1.08 trillion worth of U.S. debt. Chinese billionaire and businessman Wang. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. Greed Is Good or Is It? statistic alerts) please log in with your personal account. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Why Is China Buying U.S. Farmland? Security Concerns, Explained This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. How can I increase my credit score by 25 points? 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. 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 House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. 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. Quote and Meaning, What Was the Eisenhower Doctrine? 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. 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. Additionally, Walmart has never owned Dollar Tree and has no plans to acquire the business.
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