Control of 8,000-plus of American theater screens and other media platforms allows China to project "soft power" and block unflattering depictions of the Chinese government from being presented, both in terms of creative production and mass distribution. 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. "We 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. What Would Happen if China Were to Call In Its Debt? Her modest, two-story white farmhouse has . 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. Powered and implemented by FactSet Digital Solutions. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. A paid subscription is required for full access. Nonagricultural land (such as homesteads and roads) accounted for 2%. ", The World Bank. 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. 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 . The US National Debt and How It Affects You. 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. Federal Reserve Bank of St. Louis. 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. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. ), after gaining momentum seeded in farm states. 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. Individuals can buy and sell U.S. debt, as can central banks for countries like China. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. A government bond is issued by a government at the federal, state, or local level to raise debt capital. statistic alerts) please log in with your personal account. Billions of dollars flow into the U.S. from China every year. How much of the USA is owned by China? Historically, between 20,000 and 40,000 residential properties were bought by. A repurchase agreement is a form of short-term borrowing for dealers in government securities. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. 2023 FOX News Network, LLC. 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. Data cover both foreign-owned (29.1 million acres) and U.S. 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. 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. 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. On the state level, regulations vary. 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. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. by Jamie Lutz China does not publish the. 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. 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 the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. China's Large Position in U.S. Treasuries. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. How Much Is the Per Capita Money Supply in the U.S.? Owning U.S. Treasury notes helps China's economy grow. Investopedia does not include all offers available in the marketplace. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. (Smithfield said in a later statement pertaining to their ownership structure that they are "a U.S. company that provides more than 40,000 American jobs and partners with thousands of American farmers. It allows the U.S. Treasury to borrow more at low rates. 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. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. What US companies are now owned by China? 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. She is a library professional, transcriptionist, editor, and fact-checker. Alibaba handles more business than any other e-commerce company. "Major Foreign Holders of Treasury Securities [2000-2020]. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. National Association of Realtors. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. 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. ", U.S. Department of the Treasury. The government now provides affordable housing by subsidizing commercial housing purchases or by offering low-rent public (social) housing to middle- and low-income families. All rights reserved. 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. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. In addition, many economists contend that the reported U.S. debt should include at least another $120 trillion in unfunded future liabilitiesmoney the government does not currently have but is legally obligated to pay people in the future. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. "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. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . China has steadily accumulated U.S. Treasury securities over the last few decades. 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. It has held up to $1.3 trillion of U.S. debt. "How Much U.S. Debt Does China Really Own?" Secondly, China needs American markets to buy their exported goods. The deal meant that WH Group now owns the largest pork producer in the United States as well as over 146,000 acres of Missouri farmland. China does not publish the figures on its international lending. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. 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). Every year since 2010, China has held more than $1 trillion in U.S. debt. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. 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. Register in seconds and access exclusive features. 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 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. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. Even at a slow pace, dollar demand would drop. It's more of a novelty day like Valentine's Day, rather than a religious celebration. 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 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. The Chinese Investor owns about 14% of Snapchat's shares. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. 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. It receives these dollars from Chinese companies that receive them as payments for their exports. You only have access to basic statistics. And Human Rights Watch has written that China is an'existential threat' to human rights." USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. 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. Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions This statistic is not included in your account. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. CSIS does not take specific policy positions. 2021 by the Center for Strategic and International Studies. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. As of 2019, a total of 191,000 acres of American land were owned by China. 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. 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. "Major Foreign Holders of Treasury Securities.". That's when the U.S. Department of the Treasury changed how it measures the debt. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. 3 1. 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. National Association of Realtors. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. How Much Money Does the U.S. 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. 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. In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. Its also a small percentage of the nearly 900 million acres of total American farmland. (July 18, 2022). Countries with lower currency values export more, since their products cost less when sold in foreign countries. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. 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. Furthermore, policymakers have signaled no efforts to improve state- or national-level information on foreign purchases of U.S. farmland, leaving the true picture obscured. 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. All rights reserved. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". Access to this and all other statistics on 80,000 topics from, Show sources information Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. Nations borrowing from each other may be as old as the concept of money. This material may not be published, broadcast, rewritten, "GDP growth (Annual %) - China. Owe China? Even so, large land purchases present various localized concerns in the places where they occur. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. 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 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. 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). U.S.-based companies also own over nine million acres in other countries. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. ", U.S. Department of the Treasury. and Caitlin Welsh. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. 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. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. With the U.S. dollar considered one of the safest and most stable currencies in the world, dollar-pegging helps the Chinese government maintain the stability and value of the yuan. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. 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. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. What's the Difference? In return, American consumers get cheap Chinese products and incoming investment capital. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. 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. Q1: Where and why are foreign entities purchasing farmland in the United States? "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. 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. How Did the U.S. National Debt Get So Big? China has the second-greatest amount of U.S. debt held by a foreign country. The post, which has been shared over 256,000 times as of April 14, is headlined with "read this before buying meat." "The hogs will still be raised here, but slaughtered and packaged for . That would hurt China's competitiveness by raising the yuans value relative to the dollar. ", 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. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. In 2011, the total U.S. debt stood at $14.3 trillion. companies.". Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. How much of the U.S. land does China own? In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. "Debt Position and Activity Report, June 2022," Page 1. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. Please create an employee account to be able to mark statistics as favorites. "China's Currency Policy," Page 1. 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. In Texas, a Chinese based energy company purchased more than 130,000 acres of land near Laughlin Air Force Base and is now attempting to build a wind farm to access the U.S. power grid. 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. 5. This includes the Federal Reserve, which already owns six times as much debt as China. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. In addition to federal action, some states, like Arizona, could do more to protect their local resources and communities from exploitation by domestic and foreign entities. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. This is partly because Japan is seen as a much friendlier nation and because Japans economy has been growing more slowly than Chinas over the last several years. These include white papers, government data, original reporting, and interviews with industry experts. volleyball toss rules,

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