In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. What Is the Public Debt, and When Is It Too High? The US National Debt and How It Affects You. Forbes. Japan held 1.24 trillion U.S. dollars. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. As soon as this statistic is updated, you will immediately be notified via e-mail. Breaking Down the US Debt and Who Owns It. 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). China has the second-greatest amount of U.S. debt held by a foreign country. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. 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. ), after gaining momentum seeded in farm states. That made the yuan more attractive to forex traders in global markets. Office of the Historian. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. The hardware brand is a publicly-traded company that does not have a majority shareholder. 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. 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. That data also shows that the. 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. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. 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. These are accounts dedicated to Social Security, Medicare, and other entitlements. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." [Online]. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. Learn more about how Statista can support your business. Nonagricultural land (such as homesteads and roads) accounted for 2%. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. 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 control of. 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. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. This helps China hold down the cost of its exported goods, which tends to make China, like any nation, a stronger performer in international trade. Research Associate, Global Food Security Program. 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. 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. U.S . It has held up to $1.3 trillion of U.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. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. You only have access to basic statistics. As of 2019, a total of 191,000 acres of American land were owned by China. World Gold Council. ", The World Bank. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. Longley, Robert. You've successfully subscribed to this newsletter! 2023 Center for Strategic & International Studies. 2 This amounts to more than 13% of the U.S. debt held overseas and about 3.2% of the United States' total debt load. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. 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. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. 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. Greed Is Good or Is It? 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. to incorporate the statistic into your presentation at any time. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. Quotes displayed in real-time or delayed by at least 15 minutes. How Did the U.S. National Debt Get So Big? Its economy grew more than 10% for the three decades before the 2008 recession. These foreign interests are pretty smart. We also reference original research from other reputable publishers where appropriate. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . According to the data, the value of foreign-owned American assets climbed to $32.5 trillion in the second quarter, while total foreign assets held by. Appliances (technology), IBMP.C. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. Please create an employee account to be able to mark statistics as favorites. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. That would hurt China's competitiveness by raising the yuans value relative to the dollar. This Treasury-led change makes it difficult to make long-term comparisons. Owning U.S. Treasury notes helps China's economy grow. Investopedia does not include all offers available in the marketplace. The manufacturing of smartphones and other household items is heavily reliant on China, which controls most of the rare earth minerals that make those items work. 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. U.S. Debt to China: How Much Is It, and Why? (July 18, 2022). As a Premium user you get access to the detailed source references and background information about this statistic. Even at a slow pace, dollar demand would drop. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. and Caitlin Welsh. 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. 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. The reality is very different than the rhetoric. The other countries that hold the most U.S. debt include the U.K., with $634 billion owed; Switzerland, holding $294.1 billion in debt securities; and the Cayman Islands, slightly behind Switzerland with $293.2 billion of the United States' debt. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. 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. This compensation may impact how and where listings appear. 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. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. China holds more than $1 trillion of the U.S. national debt. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. Other foreign holders included oil-exporting countries and Caribbean banking centers. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. 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 . This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. ", International Monetary Fund. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. 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. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. How much of Chinese industry is state-owned? Additionally, Walmart has never owned Dollar Tree and has no plans to acquire the business. Treasury securities are freely traded around the world. China holds more than $1 trillion of the U.S. national debt. But the contrition paid off: F9 grossed $136 million in China its first weekend, nearly double its . The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. China has steadily accumulated U.S. Treasury securities over the last few decades. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. Given the state of the AFIDA data, it seems it is doing neither. The first and most important is that China wants its currency, the yuan, pegged to the dollar. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. The government itself actually holds just under one-third, about $5 trillion, of the $19.8 trillion government debt in the form of trust funds dedicated to legislatively-mandated programs like Social Security, Medicare, and Medicaid and veterans benefits. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. To use individual functions (e.g., mark statistics as favourites, set In, National Association of Realtors. 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. 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. 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.. Definition and Impact. The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. 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. Manuel Balce Ceneta/AP Photo. 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. . Here's a quick and fascinating breakdown by total. "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. "Frequently Asked Questions About the Public Debt. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. Is it better to pay off credit card or pay down? "Major Foreign Holders of Treasury Securities. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. To do that, China had to loosen its peg to the dollar. 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 largest holder of U.S. debt is the United States government. 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. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. ", Harvard Business Review. ", 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. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. Market data provided by Factset. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. Of that, 195,000 acres, worth almost $2 billion when purchased, are. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. 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. 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. At some price point, U.S. consumers would buy American products instead. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. 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. 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. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. 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. The buying gorge went from April 2021 to March 2022 and . What is the best way to liquidate stocks? The offers that appear in this table are from partnerships from which Investopedia receives compensation. 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. It allows the U.S. Treasury to borrow more at low rates. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Congressional Research Service. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. 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. Individuals can buy and sell U.S. debt, as can central banks for countries like China. That's a decline of. The Chinese Investor owns about 14% of Snapchat's shares. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. Though the magazine named him the largest private farmland owner in January 2021, the Microsoft founder came under fire in early 2022 when he was briefly barred from purchasing 2,100 acres of North Dakota farmland. 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. "General Government Gross Debt.". Her modest, two-story white farmhouse has . China also became the world's biggest exporter in 2009. What is the highest credit limit for Chase Sapphire? Please do not hesitate to contact me. 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). Its a massive undertaking to verify who really owns [the land], Maxwell said. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. How Much U.S. Debt Does China Really Own? 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. 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. If you are an admin, please authenticate by logging in again. 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. TreasuryDirect. 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. "GDP Growth (Annual %) - China. The ideal entry-level account for individual users. 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 could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. China does not publish the figures on its international lending. So, Lowes operates independently of Walmart. 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. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. "Bretton Woods-GATT, 19411947.". companies.". Most countries want their currency values to fall so they can win global currency wars. TreasuryDirect. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. Does paying off all debt increase credit score? Register in seconds and access exclusive features. 41 on The Land Reports 2022 list of Americans who own the most land. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. The USDA reports that the changes in pasture and crop land holdings since 2009 were mostly due to foreign-owned wind companies signing or terminating long-term leases. You need a Statista Account for unlimited access. 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. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. China is also responding to accusations of manipulation. A government bond is issued by a government at the federal, state, or local level to raise debt capital. Gates is No. Show publisher information Times Square billboard endeavors to warn of creeping Chinese influence. Amanda Jackson has expertise in personal finance, investing, and social services. Walmart owns no shares. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. With an aging U.S. farmer population and not enough new farmers able to enter the industry, more land will inevitably be converted to other uses or sold to foreign and domestic investors unless policies are put in place to support the next generation of farmers. It could be bigger," he surmised. ", Congress.gov. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. "How Much U.S. Debt Does China Really Own?" 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. 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 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. The United States owes China approximately $980.8 billion as of May 2022. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. This is just a small part of the 30 . Billions of dollars flow into the U.S. from China every year. Washington, DC 20036. Legal Statement. ", The World Bank. Chinas demand for Treasurys helps keep U.S. interest rates low. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. ThoughtCo. 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. All rights reserved. You can only download this statistic as a Premium user. Milos Maricic, an international affairs expert and World Economic Forum contributor, concurred that while China owns close to $150 billion in U.S. companies not particularly huge in comparison to the U.S. economy there is a lot about the available figure that we simply do not know. Before June 2010, Treasury reports showed that China held about $843 billion in debt. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. March 18, 2016, 2:10 PM. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. CSIS does not take specific policy positions. 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. This helps inflate the value of the dollar. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. Haier bought GE for $5.4 billion, a recording breaking sum at that time. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. Why China Buys U.S. Debt With Treasury Bonds, A Look at National Debt and Government Bonds, National Debt: Definition, Impact, Key Drivers, Current U.S. Debt, 2020 Election: The Key Economic Issues Explained.