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. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. 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. 2 Which Country Owes the Most Money to China? On the state level, regulations vary. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. This is just a small part of the 30 . Nonagricultural land (such as homesteads and roads) accounted for 2%. March 18, 2016, 2:10 PM. "GDP Growth (Annual %) - Japan, China.". 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. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. That's when the U.S. Department of the Treasury changed how it measures the debt. Secondly, China needs American markets to buy their exported goods. 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. As a Premium user you get access to the detailed source references and background information about this statistic. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Powered and implemented by FactSet Digital Solutions. 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. ", U.S. Department of the Treasury. That would hurt China's competitiveness by raising the yuans value relative to the dollar. Profit from the additional features of your individual account. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. 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. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. 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. White House National Security Advisor Jake Sullivan said in a statement that the United States welcomes the commitments of Israel and the Palestinian Authority to reduce tensions and prevent further violence. "How Much U.S. Debt Does China Really Own?" Includes buyers from the People's Republic of China, Hong Kong and Taiwan. U.S. Department of the Treasury. United States Treasury Fiscal Data. 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). In, National Association of Realtors. U.S. Debt to China: How Much Is It, and Why? China is also responding to accusations of manipulation. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. Chinas demand for Treasurys helps keep U.S. interest rates low. It receives these dollars from Chinese companies that receive them as payments for their exports. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. China's economy would suffer along with everyone else's. In 2019, it grew at 6.1%, an even more sustainable rate. 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. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Its a massive undertaking to verify who really owns [the land], Maxwell said. 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. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. ", Congress.gov. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. The first and most important is that China wants its currency, the yuan, pegged to the dollar. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. That changed with the USMCA. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . 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. Show publisher information 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. 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. China owns roughly $1.08 trillion worth of U.S. debt. (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. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. To use individual functions (e.g., mark statistics as favourites, set While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. For example, foreign investors can set up limited liability companies in the U.S. and designate an American owner to circumvent the reporting requirements while still controlling the operation behind the scenes, said Joe Maxwell, president of the progressive advocacy group Family Farm Action. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. U.S.-based companies also own over nine million acres in other countries. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. 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. China's position as the largest foreign holder of U.S. debt gives it some political leverage. U.S . 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. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. 1616 Rhode Island Avenue, NW Walmart does not own Dollar Tree as of 2022. What is the highest credit limit for Chase Sapphire? TreasuryDirect. "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. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. China also is liberalizing its control of the yuan, also called the "renminbi." 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? Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. | Photo by Nathan Howard/Getty Images. Since 2016, a company owned by Xinjiang-based real estate tycoon Sun Guangxin had spent an estimated $110 million buying up land in Texas' Val Verde County. Ever since the establishment of theBretton Woods Systemin 1944, the value of Chinas currency, the yuan, has been connected or pegged to the value of the U.S. dollar. Discover the current debt ceiling and its economic impact. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? The data is based on a 1978 law directing foreign nationals to report their U.S. agricultural holdings to USDA a requirement that can be difficult for the department to enforce. 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. 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. Federal Reserve Bank of St. Louis. "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. 3 1. Investopedia does not include all offers available in the marketplace. You can learn more about the standards we follow in producing accurate, unbiased content in our. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. 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. Its research is nonpartisan and nonproprietary. Stoves, refrigerators, washers and dryers from General Electric have been around for more than 100 years, but starting last year, the appliance division of the iconic company has been Chinese. Manuel Balce Ceneta/AP Photo. You've successfully subscribed to this newsletter! We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Agricultural Land. Statista. 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 greatest share is in Texas, with over 4.4 million acres, followed by Maine (3.3 million acres) and Alabama (1.8 million acres). 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. Individuals can buy and sell U.S. debt, as can central banks for countries like China. ", The World Bank. 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. Other foreign holders included oil-exporting countries and Caribbean banking centers. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. Investopedia requires writers to use primary sources to support their work. 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. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. Office of the Historian. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. "How Much Money Does the World Owe China? And while the U.S. grants China permission to buy its companies, China does not allow U.S. companies to operate the same way on their soil. (2021, September 2). This has been common practice for many countries ever since the Bretton Woods Conference in 1944. The PBOC can print renminbi as needed. According to the U.S. Census Bureau, the U.S. has been suffering from a significant trade deficit with China since 1985, meaning that the U.S. buys more goods and services from China than China buys from the U.S. Chinese exporters receive U.S. dollars for their goods sold to the U.S. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. 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. As soon as this statistic is updated, you will immediately be notified via e-mail. 2023 Center for Strategic & International Studies. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. 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. China holds more than $1 trillion of the U.S. national debt. Every year since 2010, China has held more than $1 trillion in U.S. debt. Then you can access your favorite statistics via the star in the header. World Gold Council. Longley, Robert. While some states have strict laws in place, others are more open to foreign investments. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. 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). 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. China is taking steps to make its currency, the yuan, transition to a global currency. Its also a small percentage of the nearly 900 million acres of total American farmland. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. 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. Does paying off all debt increase credit score? The buying gorge went from April 2021 to March 2022 and . While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. 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 products are still made in the USA, but the decisions are made in China. The ideal entry-level account for individual users. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. 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. 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 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. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. 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. China needs this growth to raise its low standard of living. 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 . 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. Of that, 195,000 acres, worth almost $2 billion when purchased, are. "Federal Debt Held by Federal Reserve Banks. At some price point, U.S. consumers would buy American products instead. ", 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. As it is not known exactly how much US land is owned by China. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. See Media Page for more interview, contact, and citation details. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. statistic alerts) please log in with your personal account. Japanese-owned debt doesn't receive nearly as much negative attention as Chinese-owned debt, ostensibly because Japan is seen as a friendlier nation and the Japanese economy hasn't grown as fast as China's year after year. Alibaba handles more business than any other e-commerce company. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa).
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how much of america is owned by china?