How can I increase my credit score by 25 points? The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. U.S. direct investments in China 2000-2021 | Statista 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. A paid subscription is required for full access. How much do banks charge to manage a trust? How much of the United States does China really own? Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. 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. Show publisher information | Amanda Jackson has expertise in personal finance, investing, and social services. 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. 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. Given the state of the AFIDA data, it seems it is doing neither. Walmart does not own Dollar Tree as of 2022. While a large portion of Smithfield pork was already being exported to China prior to the acquisition, the Covid-19 crisis raised concerns about Chinese control of U.S. food supply chains. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. Chinas demand for Treasurys helps keep U.S. interest rates low. Q3: What regulations are currently in place? The Biggest American Companies Now Owned by the Chinese - Yahoo! She is a library professional, transcriptionist, editor, and fact-checker. How much of America do foreigners really own? - MarketWatch The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Biden thanks King of Jordan for "historic meeting" in Aqaba and Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. WH Groups shareholders include many large U.S.-based financial institutions.". 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. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. | Photo by Nathan Howard/Getty Images. China also became the world's biggest exporter in 2009. What Is the Public Debt, and When Is It Too High? This has been common practice for many countries ever since the Bretton Woods Conference in 1944. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. Alibaba handles more business than any other e-commerce company. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. Forbes. How much of the USA is owned by China? IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. Office of the Historian. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. Each bill, bond, and note represents ownership in U.S. debt. Washington, DC 20036. What country owns the most US soil? - coalitionbrewing.com ", The World Bank. To use individual functions (e.g., mark statistics as favourites, set According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. ", U.S. Department of the Treasury. This compensation may impact how and where listings appear. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. 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. The hardware brand is a publicly-traded company that does not have a majority shareholder. Individuals can buy and sell U.S. debt, as can central banks for countries like China. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. The PBOC can print renminbi as needed. 10 iconic American companies owned by Chinese investors - CNBC The NYFC also points to both urban and rural development as a threat to the future of U.S. farms, since converting farmland to other uses drives up prices and makes the land unaffordable for beginning farmers. ", Harvard Business Review. 5. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. 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. "How Much U.S. Debt Does China Really Own?" The . Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. 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. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. So, in part, Chinese demand for American property is a sign of their desire to give their children the best opportunities to have a successful future.. The greatest share is in Texas, with over 4.4 million acres, followed by Maine (3.3 million acres) and Alabama (1.8 million acres). That would hurt China's competitiveness by raising the yuans value relative to the dollar. Get full access to all features within our Business Solutions. Are chinese companies state owned? Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. Powered and implemented by FactSet Digital Solutions. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. 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. Why Is China Buying U.S. Farmland? Security Concerns, Explained "In 2017, the United States produced zero rare earth minerals. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. As a Premium user you get access to the detailed source references and background information about this statistic. Of the 109 countries that own U.S. agricultural land, China ranks No. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. China's low-cost competitive strategy seems to be working. "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. How Much Land Does China Own? | askBAMLand Foreign Ownership and Holdings of U.S. Agricultural Land House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. The value will change whenever China trades Treasury securities or when the prices of those bonds change. 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. 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. 2 Which Country Owes the Most Money to China? 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. Market data provided by Factset. All rights reserved. All rights reserved. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. The call for tighter limits on who owns Americas farms has come from a wide range of political leaders, from former Vice President Mike Pence to Sen. Elizabeth Warren (D-Mass. Her modest, two-story white farmhouse has . "Federal Debt Held by Federal Reserve Banks. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. National Association of Realtors. Advocacy groups like the National Family Farm Coalition argue that the larger threat to national security is corporate capture of U.S. land resources, whether those corporations are U.S.- or foreign-owned. How Hollywood Sold Out to China - The Atlantic China has the second-greatest amount of U.S. debt held by a foreign country. But, exactly how much does the nation own? Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. The reality is very different than the rhetoric. Learn more about how Statista can support your business. and Caitlin Welsh. Smithfield was also in line to receive money from the program, which was created to help U.S. farmers strung by trade retaliation from China and other competitors. 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). While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. All Rights Reserved. Agricultural Land. As it is not known exactly how much US land is owned by China. Tucker Carlson: America's Leadership Class Spent Years Covering Up Pentagon releases list of companies linked to Chinese military Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. Congress can then increase the federal spending that spurs U.S. economic growth. Q5: What is the real threat to U.S. food security? "GDP growth (Annual %) - 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. Q4: What federal solutions are being discussed? The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. 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. Securities. National Debt or Federal Deficit? Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. How Much U.S. Debt Does China Really Own? The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. Please create an employee account to be able to mark statistics as favorites. statistic alerts) please log in with your personal account. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Chinese billionaire and businessman Wang. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . RT @lillybug000: How much more does any American have to see to realize our government is owned by China. The economy of China is driven by manufacturing and exporting. Howard Evans on Twitter: "RT @lillybug000: How much more does any How Much Is the Per Capita Money Supply in the U.S.? 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. 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. 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. Newt says China will 'dominate world' if tech theft isn't stopped, 'it's a matter of life and death', share data with Chinese communist spy agencies. China is buying billions in US farmland and lawmakers are scrambling to 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. 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. ", 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. CSIS does not take specific policy positions. Its a massive undertaking to verify who really owns [the land], Maxwell said. U.S. Department of the Treasury. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. United States Treasury Fiscal Data. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. 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 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. How much US debt does China own and why is it important? While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. It has opened yuan trading centers in London and Frankfurt. How Much U.S. Debt Does China Own? - The Balance 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. Statista. Countries Who Own The Most Acres U.S. China also is liberalizing its control of the yuan, also called the "renminbi." 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. "China's Gold Market: Progress and Prospects," Page 2. Some U.S. lawmakers are pushing back amid the coronavirus fallout, which ignited an initial panic over concerns of critical medical shortages and Beijing's threats to withhold the needed goods. Are you interested in testing our business solutions?