China has the second-greatest amount of U.S. debt held by a foreign country. 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. 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. 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 . This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Quote and Meaning, What Was the Eisenhower Doctrine? China is taking steps to make its currency, the yuan, transition to a global currency. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. China's Large Position in U.S. Treasuries. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. 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. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. Treasury securities are freely traded around the world. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. China's economy would suffer along with everyone else's. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. 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. Market data provided by Factset. The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. 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. 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. "Debt Position and Activity Report, June 2022," Page 1. 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. Walmart does not own Dollar Tree as of 2022. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. 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. As of 2019, a total of 191,000 acres of American land were owned by China. 5. 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. "GDP growth (Annual %) - China. 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. 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. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. ", The World Bank. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. Q5: What is the real threat to U.S. food security? The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. This material may not be published, broadcast, rewritten, or redistributed. 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. "Major Foreign Holders of Treasury Securities. A paid subscription is required for full access. 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. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. This compensation may impact how and where listings appear. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. National Association of Realtors. This helps inflate the value of the dollar. The measure is expected to reach the House floor before the end of July, as part of a broader appropriations package, although the Senate has not yet drafted its own version of the spending bill. 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. (July 18, 2022). What US companies are now owned by China? Countries with lower currency values export more, since their products cost less when sold in foreign countries. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? Are you interested in testing our business solutions? This material may not be published, broadcast, rewritten, On the state level, regulations vary. National Association of Realtors. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. 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 first and most important is that China wants its currency, the yuan, pegged to the dollar. 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. China also became the world's biggest exporter in 2009. ", U.S. Department of the Treasury. As a Premium user you get access to background information and details about the release of this statistic. Longley, Robert. The United States owes China approximately $980.8 billion as of May 2022. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. 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. The products are still made in the USA, but the decisions are made in China. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Learn more about how Statista can support your business. 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. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. And Human Rights Watch has written that China is an'existential threat' to human rights." Is Americas Debt to China Really So Bad? These include white papers, government data, original reporting, and interviews with industry experts. 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. China has steadily accumulated U.S. Treasury securities over the last few decades. The Netherlands is the second largest foreign owner with 4.6 million acres. In a vicious cycle, they sell the U.S. dollars they receive through exports to get renminbi, which increases the supply of U.S. dollars and raises the demand for renminbi, to the point that the renminbi ranked as the eighth most traded currency in the world as of 2019. Access to this and all other statistics on 80,000 topics from, Show sources information China is also responding to accusations of manipulation. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. I would suggest that we sit down and we work through it so we can accomplish our objective, but do it in a way that is sensitive to all those who might be somewhat offended by the approach.. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. Greed Is Good or Is It? However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. 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. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. All Rights Reserved. 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. China held 1.1 trillion U.S. dollars in U.S. securities. Owe China? 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. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. Every year since 2010, China has held more than $1 trillion in U.S. debt. In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. (ChinaOwnsUs campaign). The economy of China is driven by manufacturing and exporting. "Debt Position and Activity Report, June 2017," Page 1. That figure was$30.5trillion as of June 30, 2022. Available: https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022, Available to download in PNG, PDF, XLS format, Cross-border commercial real estate investment in the United States, Origin of foreign residential buyers in the U.S. 2016-2018, Cross-border commercial real estate investments in the U.S. 2018, by country, Number of commercial properties in the U.S. 2018, by investor country, Property purchased by foreign buyers in U.S. 2009-2022, by type of area, Share of commercial space leased by foreign clients U.S. 2018, by size, Share of commercial space leased by foreign clients U.S. 2018, by lease term, Perception of real estate market among foreign investors in U.S. 2016-2018, Perception of U.S. real estate prices among foreign buyers 2018, Reasons why foreign buyers don't buy real estate in the U.S. 2019, Share of Chinese buyers of residential property in the U.S. 2011-2022, Total residential property sales to Chinese buyers in the U.S. 2010-2022, Total number of residential properties bought by Chinese buyers in the U.S. 2010-22, Average purchase price of residential property by Chinese buyers in the U.S. 2010-22, Median purchase price of residential property by Chinese buyers in the U.S. 2010-2022, Share of CRE investments from China/Hong Kong in the U.S. 2011-2017, by investor type, Value of China/Hong Kong CRE investments made in the U.S. 2011-2017, Share of Canadian buyers of residential property in the U.S. 2011-2022, Total residential property sales to Canadian buyers in the U.S. 2010-2022, Average purchase price of residential property by Canadian buyers in the U.S. 2010-22, Median purchase price of residential property by Canadian buyers in the U.S. 2010-22, Share of UK buyers of residential property in the U.S. 2011-2022, Total residential property sales to buyers from the UK in the U.S. 2010-2021, Total number of residential properties purchased by UK buyers in the U.S. 2010-2021, Average purchase price of residential property by UK buyers in the U.S. 2010-2021, Median purchase price of residential property by UK buyers in the U.S. 2010-2021, Total residential property sales to Indian buyers in the U.S. 2010-2022, Average purchase price of residential property by Indian buyers in the U.S. 2010-2022, Median purchase price of residential property by Indian buyers in the U.S. 2010-2022, Share of Mexican buyers of residential property in the U.S. 2011-2022, Total residential property sales to Mexican buyers in the U.S. 2010-2022, Total number of residential properties bought by Mexican buyers in the U.S. 2010-2022, Average purchase price of residential property by Mexican buyers in the U.S. 2010-22, Median purchase price of residential property by Mexican buyers in the U.S. 2010-2022, Average price of residential property in France 2022, by property type, Breakdown of housings in France 2020, by square meter price, Average price of rental flats per square meter in France 2020, Average rent price for apartments in the largest French cities 2022, Value of commercial real estate investment in France 2021-Q1 2022, by type, Origin of major foreign buyers of U.S. residential property in 2022, Share of Brazilian buyers of residential property in the U.S. 2011-2020, Share of German buyers of residential property in the U.S. 2011-2020, Housing purchase transactions volume Jeju, South Korea 2009-2021, Housing transactions volume Busan, South Korea 2009-2021, Housing transactions volume Gyeonggi, South Korea 2009-2021, Housing purchase transactions volume Gyeonggi, South Korea 2009-2021, Housing transactions volume Jeju, South Korea 2009-2021, Realtors' sources of referrals for foreign residential property buyers U.S. 2022, Apartment purchase transactions volume Incheon, South Korea 2009-2021, Find your information in our database containing over 20,000 reports, Chinese buyers were responsible for only six percent of all sales to foreigners, bought the most U.S. residential property, property sales to foreign buyers peaked at 153 U.S. dollars in 2017. 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. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. ThoughtCo. How much of the USA is owned by China? 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. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. ", United States Department of Treasury. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. How many times does Coca Cola pay dividends? Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (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. ", U.S. Department of the Treasury. The extent of Chinese investment in recent years has also raised red flags around U.S. national security, particularly in the realm of rare earth minerals. The remaining 38 percent is held by entities from almost a hundred other countries. Profit from the additional features of your individual account. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. "Federal Debt Held by Federal Reserve Banks. 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. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. Policymakers should, instead, consider the many threats facing the future of the U.S. food system and ensure that current and aspiring farmers have the resources they need to secure long-term U.S. food production, starting with access to affordable farmland. Individuals can buy and sell U.S. debt, as can central banks for countries like China. TreasuryDirect. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Congressional Research Service. 2021 by the Center for Strategic and International Studies. How can I increase my credit score by 25 points? China holds more than $1 trillion of the U.S. national debt. Gates continues to deny any plot, telling Reddit users in January that he owns less than one four-thousandths of U.S. farmland and invests in farms to improve their production and create jobs. Please do not hesitate to contact me. Agricultural Land. (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. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. 2023 FOX News Network, LLC. It amounted to about 192,000 of the. Mexico has gone from 38% to 42%. Nonagricultural land (such as homesteads and roads) accounted for 2%. That's a decline of. Use Ask Statista Research Service. 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. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. How do I know if my stimulus was deposited? TreasuryDirect. United States Treasury Fiscal Data. It is responsible for lower interest rates and cheap consumer goods. The FARMForeign Adversary Risk Managementact, introduced in the House of Representatives and the Senate on January 25, would trigger a Department of Agriculture and Government Accountability Office investigation into foreign influence on Americas agriculture industry. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. Consequences of Owing Debt to the Chinese, Government Bond: What It Is, Types, Pros and Cons, Repurchase Agreement (Repo): Definition, Examples, and Risks, U.S. Debt Ceiling: Definition, History, Pros, Cons, Clashes, Debt-to-GDP Ratio: Formula and What It Can Tell You, Major Foreign Holders of Treasury Securities, Debt Position and Activity Report, June 2017, Debt Position and Activity Report, June 2022, Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill, Frequently Asked Questions About the Public Debt, China's Gold Market: Progress and Prospects, Federal Debt Held by Federal Reserve Banks. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". Two bills introduced in the House of Representatives and the Senate argue foreign influence on American agricultural land could affect Americas economy, food supply, and national security. Statista. It has opened yuan trading centers in London and Frankfurt. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. Amazon founder Jeff Bezos comes in at No. Along similar lines, climate-related efforts to increase biofuel production and expand afforestation and reforestation could reduce the amount of land available for food production in the future. 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. Q4: What federal solutions are being discussed? 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). Nations borrowing from each other may be as old as the concept of money. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. Chinese billionaire and businessman Wang. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. Office of the Historian. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. How Much Is the Per Capita Money Supply in the U.S.? Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. ", Congress.gov. Christmas in Mainland China is not a public holiday and is not related to religion at all. 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. 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. 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. These are accounts dedicated to Social Security, Medicare, and other entitlements. And its findings may be surprising to some. 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. 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. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. 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. . What is the best way to liquidate stocks? 18, far behind No. 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. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. The PBOC can print renminbi as needed. 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. 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. That made the yuan more attractive to forex traders in global markets. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. 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. Q2: What threats do foreign acquisitions of U.S. farmland pose? But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. But the contrition paid off: F9 grossed $136 million in China its first weekend, nearly double its . Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. While some states have strict laws in place, others are more open to foreign investments. 4356 (117)) that would block any new agricultural purchases by companies that are wholly or partly controlled by the Chinese government and bar Chinese-owned farms from tapping federal support programs. 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. Definition and Impact. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. 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. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. Data cover both foreign-owned (29.1 million acres) and U.S. Longley, Robert. How Much Money Does the U.S. U.S. consumers benefit from low consumer prices. The reality is very different than the rhetoric. Business Solutions including all features. That makes Chinese exports cheaper than American-made goods, increasing sales.