Treasury securities are freely traded around the world. It receives these dollars from Chinese companies that receive them as payments for their exports. This is just a small part of the 30 . Learn more about how Statista can support your business. The top two foreign holders of U.S. debt are Japan and China. 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. Debt to the Penny., U.S. Department of the Treasury. American Companies You Didn't Know Were Owned By Chinese Investors As of the start of 2020, Chinese investors owned about 192,000 acres of U.S. agricultural land valued at about $1.9 billion, according to Politico. Biden thanks King of Jordan for "historic meeting" in Aqaba and 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. Q4: What federal solutions are being discussed? This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. Other foreign holders included oil-exporting countries and Caribbean banking centers. 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.. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. Although Congress has become increasingly concerned about Chinese land purchases, investors from China currently own only a small fraction of this land, at 191,652 acres (0.05 percent of the total). This material may not be published, broadcast, rewritten, Nations borrowing from each other may be as old as the concept of money. You can only download this statistic as a Premium user. "He firmly believes that China, before the year [20]30, '35, is going to own America because autocracies can make quick decisions." The president did not elaborate on what was meant by "own. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. That makes Chinese exports cheaper than American-made goods, increasing sales. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. That figure was$30.5trillion as of June 30, 2022. 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. 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. What is the highest credit limit for Chase Sapphire? Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. 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. Legal Statement. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. 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. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. As its exports decline, China is less able to invest in U.S. Treasurys. China holds more than $1 trillion of the U.S. national debt. Congress can then increase the federal spending that spurs U.S. economic growth. 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. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Fact check: Smithfield, owned by Chinese firm, sells US-processed meat How much of the U.S. land does China own? - FinanceBand.com Is Americas Debt to China Really So Bad? 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. 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. 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. Countries Who Own The Most Acres U.S. 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. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. 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. Here's a quick and fascinating breakdown by total. How Much U.S. Farmland Does China Really Own? More Than Bill GatesAnd Greed Is Good or Is It? (2022). The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. 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. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Amanda Jackson has expertise in personal finance, investing, and social services. 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. AMC. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. Owning U.S. Treasury notes helps China's economy grow. 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. 2 Which Country Owes the Most Money to China? ", International Monetary Fund. They use different business structures to further conceal it.. 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. "Bretton Woods-GATT, 19411947.". How Much U.S. Debt Does China Own? - Investopedia Former Vice President Mike Pence speaks during an event. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. All Rights Reserved. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. This amount is subject to market fluctuations. China is buying up American farms. Washington wants to crack - POLITICO At some price point, U.S. consumers would buy American products instead. 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. This acquisition put two Chinese directors on Hilton's Board of 10. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. Nord Stream explosions hard to cover up - asiatimes.com And its findings may be surprising to some. In 2011, the total U.S. debt stood at $14.3 trillion. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. The renewed focus on curbing foreign farm purchases comes as Biden and Agriculture Secretary Tom Vilsack roll out a series of actions to bolster the food supply chain, following major disruptions caused by the pandemic. World Gold Council. This series of events prompted Congress to look at how to prevent Chinese ownership in U.S. agriculture, even though other foreign entities, like Brazilian-owned JBS, control similarly large portions of U.S. food supply chains. 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. China does not publish the. Definition and Impact. Chart. How Hollywood Sold Out to China - The Atlantic Anyone can buy U.S. debt. Manuel Balce Ceneta/AP Photo. 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. Land grabbingwhen a government, company, or other entity purchases large swathes of land in another countrycan affect local land rights and agricultural production, sometimes putting local food security at risk. Nonagricultural land (such as homesteads and roads) accounted for 2%. How Much U.S. Debt Does China Own? - The Balance Individuals can buy and sell U.S. debt, as can central banks for countries like China. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. U.S . 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. Agricultural Land. 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. 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 . 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. "Under President Trump, the U.S. was the first to recognize their nonstop deceits, and now the rest of the world has a clearer picture of China's ambition. Even so, large land purchases present various localized concerns in the places where they occur. Quote and Meaning, What Was the Eisenhower Doctrine? Much of the rest of the debt is owned by individual investors, corporations, and other public entities. 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. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Profit from the additional features of your individual account. "How Much Money Does the World Owe China? Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. ", United States Department of Treasury. 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. How Much Money Does the U.S. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. 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.. 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. 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. 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. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. or redistributed. 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. 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. "We Tucker Carlson: America's Leadership Class Spent Years Covering Up According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. Each bill, bond, and note represents ownership in U.S. debt. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. 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. U.S. Debt to China: How Much Is It, and Why? - The Balance 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. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. 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. Is it better to pay off credit card or pay down? 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. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. Are chinese companies state owned? statistic alerts) please log in with your personal account. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Longley, Robert. In 2019, it grew at 6.1%, an even more sustainable rate. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Please do not hesitate to contact me. 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. 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. It is not only foreign companies who take advantage of this regulatory loophole, howevercompanies from other states and cities around the United States are also buying up land in Arizona to take advantage of the states loose water regulations, putting Arizonas long-term water resources at risk. Mexico has gone from 38% to 42%. Office of the Historian. As a Premium user you get access to background information and details about the release of this statistic. How America got outmaneuvered in a critical mining race For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. TreasuryDirect. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. "China's Currency Policy," Page 1. Q1: Where and why are foreign entities purchasing farmland in the United States? The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. 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. Breaking Down the US Debt and Who Owns It. 2023 FOX News Network, LLC. "Federal Debt Held by Federal Reserve Banks. ", Harvard Business Review. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. "Chinese companies have been carrying out unchecked reverse mergers for years now, and the media (influence) has been going under the radar for years now," Murad added. The National Young Farmers Coalition (NYFC) anticipates that two-thirds of farmland will change hands over the next decade as farmers retire, meaning that more land could become available for foreign purchase. No, China does not own Walmart. How much of the USA is owned by China? The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. Biden says China believes it will 'own America' within 15 years Use Ask Statista Research Service. 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. Show publisher information In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. The money flowing into agricultural real estate from other countries also makes it difficult for new farmers in the U.S. to afford land as outside buyers bid up prices. (2021, September 2). "How Much U.S. Debt Does China Really Own?" Every year since 2010, China has held more than $1 trillion in U.S. debt. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. ", The World Bank. "Frequently Asked Questions About the Public Debt. Most countries want their currency values to fall so they can win global currency wars. ", TreasuryDirect. Chinese firms have expanded their presence in American agriculture over the last decade by snapping up farmland and purchasing major agribusinesses, like pork processing giant Smithfield Foods. All rights reserved. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. Her modest, two-story white farmhouse has . 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. 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. That data also shows that the. 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). Countries with lower currency values export more, since their products cost less when sold in foreign countries. 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. "In 2017, the United States produced zero rare earth minerals. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. National Association of Realtors. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). U.S. Department of the Treasury. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. 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. That's when the U.S. Department of the Treasury changed how it measures the debt. You need a Statista Account for unlimited access. This includes the Federal Reserve, which already owns six times as much debt as China. It has held up to $1.3 trillion of U.S. debt. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." It is responsible for lower interest rates and cheap consumer goods. Are you interested in testing our business solutions? Quotes displayed in real-time or delayed by at least 15 minutes. 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. Before June 2010, Treasury reports showed that China held about $843 billion in debt. 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. 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. Investopedia requires writers to use primary sources to support their work.