As a Premium user you get access to the detailed source references and background information about this statistic. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. "GDP growth (Annual %) - China. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. For example, the huge amount of debt that the U.S. government owes Chinese lenders has been the subject of countless debates, headline news stories, and political platforms for decades. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. How do I know if my stimulus was deposited? 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. Why A Secretive Chinese Billionaire Bought 140,000 Acres Of Land In Texas Citing the nonpartisan economic think-tank Paulson Institute, the American Security Institutereport underscores that "Chinese firms and investors own a controlling majority in nearly 2,400 U.S. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. Congressional Research Service. These are accounts dedicated to Social Security, Medicare, and other entitlements. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Haier bought GE for $5.4 billion, a recording breaking sum at that time. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. "GDP Growth (Annual %) - Japan, China.". 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. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Japan consistently tops the list, owning about $1.3 trillion as of October 2021. 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. Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases (WSJ), North Dakota Turns Against Chinese Corn Mill Project (WSJ). Federal Reserve Bank of St. Louis. The Chinese government's theft of intellectual property has been an open secret for decades. Washington, DC 20036. "Debt Position and Activity Report, June 2022," Page 1. 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. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. This Treasury-led change makes it difficult to make long-term comparisons. 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. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. 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. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. While some states have strict laws in place, others are more open to foreign investments. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. 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. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. Outward FDI stock share of state-owned and private enterprises in China 2011-2021 FDI outflows from Chinese central enterprises in non-financial sectors 2011-2021 Value of Chinese FDI flows to the . Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. How much US debt does China own and why is it important? 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. What is the best way to liquidate stocks? Q4: What federal solutions are being discussed? While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. 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. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. In late May, the Senate unanimously passed the bipartisan Holding Foreign Companies Accountable Act in a bid to force foreign companies with China at the likely forefront to adhere to U.S. securities law, and compel some to be removed from American stock exchanges. China is taking steps to make its currency, the yuan, transition to a global currency. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. So, Lowes operates independently of Walmart. China's low-cost competitive strategy seems to be working. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. 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. The AFIDA requires foreign entities to report transactions of farmland to the USDA and imposes steep penalties for failing to report (up to 25 percent of the fair market value of the land), although they are rarely enforcedthe last fine imposed under the act was in 2014. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. Sean Rayford/Getty Images, America cannot allow China to control our food supply, Pence said Wednesday during a speech at the conservative Heritage Foundation, urging President Joe Biden and Congress to end all farm subsidies for land owned by foreign nationals.. China needs this growth to raise its low standard of living. 3 1. 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. National Association of Realtors. 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. The Chinese Investor owns about 14% of Snapchat's shares. National Association of Realtors. "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. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. American Companies You Didn't Know Were Owned By Chinese Investors 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. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. "Bretton Woods-GATT, 19411947.". As a Premium user you get access to background information and details about the release of this statistic. It amounted to about 192,000 of the. Conspiracy theorists suggested Gates was buying up millions of acres of U.S. farmland for nefarious reasons, according to the fact-checking service Snopes, with some claiming that Gates owned 80% of all U.S. farmland. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. AMC. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. China held 1.1 trillion U.S. dollars in U.S. securities. Of that, 195,000 acres, worth almost $2 billion when purchased, are. 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. China's Large Position in U.S. Treasuries. New Data Shows U.S. Companies Are Definitely Leaving China - Forbes How Much Is the Per Capita Money Supply in the U.S.? The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. Legal Statement. This acquisition put two Chinese directors on Hilton's Board of 10. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. Longley, Robert. The last significant increase in acres occurred between 2012 and 2013 . ", The World Bank. Before June 2010, Treasury reports showed that China held about $843 billion in debt. 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. Of that, 195,000 acres, worth almost $2 billion when purchased, are owned by 85 Chinese investors, which could be individuals, companies or the government. 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. Forbes. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. "How Much Money Does the World Owe China? ", U.S. Department of the Treasury. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. U.S.-based companies also own over nine million acres in other countries. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. 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. World Gold Council. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. How Much U.S. Debt Does China Own? - The Balance 2021 by the Center for Strategic and International Studies. 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. 1616 Rhode Island Avenue, NW Mutual Fund and ETF data provided by Refinitiv Lipper. Mutual Fund and ETF data provided by Refinitiv Lipper. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. U.S. consumers benefit from low consumer prices. More than 200 foreign firms mostly Chinese with a combined market capitalization of almost $2 trillion are said to not be meeting this standard; so their stocks are traded, but U.S. investors have limited insight into what is going on internally with the companies. It allows the U.S. Treasury to borrow more at low rates. March 18, 2016, 2:10 PM. "Major Foreign Holders of Treasury Securities. WH Groups shareholders include many large U.S.-based financial institutions.". China has the second-greatest amount of U.S. debt held by a foreign country. 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). This compensation may impact how and where listings appear. When the pandemic hit, Smithfield increased pork exports to China even as the United States experienced widespread meat shortages due to supply chain disruptions and Smithfield closed some of its plants due to poor working conditions. China's economy would suffer along with everyone else's. 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. Learn more about how Statista can support your business. [Online]. Times Square billboard endeavors to warn of creeping Chinese influence. Second, the Chinese rely on American markets to buy Chinese-produced goods. China owns roughly $1.08 trillion worth of U.S. debt. Gates is No. A1: USDA records provide the best source of information on foreign-held agricultural land, although they are still incomplete and contain many errors (as explained in A3 below). The value will change whenever China trades Treasury securities or when the prices of those bonds change. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. "We At some price point, U.S. consumers would buy American products instead. They use different business structures to further conceal it.. 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. The buying gorge went from April 2021 to March 2022 and . 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? 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. What country owns the most US soil? - coalitionbrewing.com The PBOC can print renminbi as needed. China holdings of U.S. debt fall below $1 trillion for the first time That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. On the state level, regulations vary. 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 . How Hollywood Sold Out to China - The Atlantic 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. ", U.S. Department of the Treasury. It receives these dollars from Chinese companies that receive them as payments for their exports. Business Solutions including all features. Walmart owns no shares. These foreign interests are pretty smart. The remaining 38 percent is held by entities from almost a hundred other countries. David Schlessinger and I founded Five Below 16 years ago with a promise to build an amazing store for teens and pre-teens that offers trend-right, high-quality merchandise all at $5 or less, said Tom Vellios . China is also responding to accusations of manipulation. I'm a reporter for Forbes' explainers and trends team. 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. Read our. 41 on The Land Reports 2022 list of Americans who own the most land. Its also a small percentage of the nearly 900 million acres of total American farmland. Howard Evans on Twitter: "RT @lillybug000: How much more does any Is Americas Debt to China Really So Bad? Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. 5. How Much Land Does China Own? | askBAMLand 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. Are chinese companies state owned? Q5: What is the real threat to U.S. food security? 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. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions.
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