how much of america is owned by china?

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 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). 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. Does paying off all debt increase credit score? Much of the rest of the debt is owned by individual investors, corporations, and other public entities. U.S . 1616 Rhode Island Avenue, NW Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Other foreign holders included oil-exporting countries and Caribbean banking centers. 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. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. You need at least a Starter Account to use this feature. Currently, you are using a shared account. Japan held 1.24 trillion U.S. dollars. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Amanda Jackson has expertise in personal finance, investing, and social services. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. U.S. Department of the Treasury. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. While Japans 4.8% ownership of the U.S. debt is only slightly less than Chinas 5.3%, the Japanese-owned debt is rarely depicted in a negative light, as is Chinas. 2023 FOX News Network, LLC. 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. 2021 by the Center for Strategic and International Studies. July 20, 2021 Ryan Morgan U.S. lawmakers are acting with increased concern as Chinese purchasers are buying tens of thousands of acres of U.S. farmland. China drew some headlines in 2013 and 2014 for buying up a lot of gold to store in its bank vaults, but the real safety net for the yuan is the worldwide belief in the dollar. ), after gaining momentum seeded in farm states. For example, critics say that should the Chinese government suddenly call indemand immediate repaymentof all of the U.S. governments obligations, the American economy would be hopelessly crippled. World Gold Council. 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. China has the second-greatest amount of U.S. debt held by a foreign country. Investopedia does not include all offers available in the marketplace. Historically, between 20,000 and 40,000 residential properties were bought by. 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. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. These are accounts dedicated to Social Security, Medicare, and other entitlements. (2022). 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. What Would Happen if China Were to Call In Its Debt? Powered and implemented by FactSet Digital Solutions. Appliances (technology), IBMP.C. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. China holdings of U.S. debt fall below $1 trillion for the first time China acquired another 32,000 U.S. agricultural acres in 2021not as much as they scooped up in 2020, but 98% higher than their combined growth between 2015 and 2019. ", The World Bank. Data cover both foreign-owned (29.1 million acres) and U.S. The first and most important is that China wants its currency, the yuan, pegged to the dollar. 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. Chart. If you are an admin, please authenticate by logging in again. They use different business structures to further conceal it.. 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. Chinese billionaire and businessman Wang. 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. That figure was$30.5trillion as of June 30, 2022. Its research is nonpartisan and nonproprietary. To use individual functions (e.g., mark statistics as favourites, set 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. Statista. 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. Pentagon releases list of companies linked to Chinese military Even at a slow pace, dollar demand would drop. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions 2023 FOX News Network, LLC. The United States owes China approximately $980.8 billion as of May 2022. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. U.S. Debt to China: How Much Is It, and Why? March 18, 2016, 2:10 PM. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. 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. Discover the current debt ceiling and its economic impact. 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. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." Anyone can buy U.S. debt. 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. Alibaba handles more business than any other e-commerce company. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. 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. Fact check: Smithfield, owned by Chinese firm, sells US-processed meat Contractionary Monetary Policy. 1 There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. 2 Which Country Owes the Most Money to China? Most countries want their currency values to fall so they can win global currency wars. The top two foreign holders of U.S. debt are Japan and China. How Much Money Does the U.S. (July 18, 2022). She is a library professional, transcriptionist, editor, and fact-checker. Use Ask Statista Research Service. CSIS does not take specific policy positions. Federal Reserve Bank of St. Louis. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . Quote and Meaning, What Was the Eisenhower Doctrine? On the other hand, if China were to call in its debt, the demand for the dollar could plummet. Washington, DC 20036. Biden says China believes it will 'own America' within 15 years Foreign Ownership and Holdings of U.S. Agricultural Land It's more of a novelty day like Valentine's Day, rather than a religious celebration. U.S. Debt to China: How Much Is It, and Why? - The Balance 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. Of China's own top 500, 74 percent (370) were state-owned and state stock-holding enterprises, with assets of 27, 370 billion yuan and realizing profit of 266.3 billion yuan, representing 96.96 percent and 84.09 percent respectively of the top 500 corresponding values. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. 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. 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. Q1: Where and why are foreign entities purchasing farmland in the United States? How Much U.S. Debt Does China Own? - The Balance to incorporate the statistic into your presentation at any time. 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. 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. Access to this and all other statistics on 80,000 topics from, Show sources information Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. 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. "Major Foreign Holders of Treasury Securities [2000-2020]. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. We also reference original research from other reputable publishers where appropriate. Douglas R. Bush, Deterring a Cross-Strait Conflict: Beijing's Assessment of Evolving U.S. Strategy, Rethinking Humanitarian Aid: A Conversation with Michelle Nunn, President and CEO of CARE USA, Foreign Purchases of U.S. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. 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. Outward FDI stock share of state-owned and private enterprises in China 2011-2021 FDI outflows from Chinese central enterprises in non-financial sectors 2011-2021 Value of Chinese FDI flows to the . "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. 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. ", U.S. Department of the Treasury. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. Biden thanks King of Jordan for "historic meeting" in Aqaba and But, exactly how much does the nation own? All rights reserved. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. Citing the nonpartisan economic think-tank Paulson Institute, the American Security Institutereport underscores that "Chinese firms and investors own a controlling majority in nearly 2,400 U.S. 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). It would perpetuate already rising anti-Asian hate, Meng warned at the markup. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. How Much U.S. Debt Does China Really Own? - ThoughtCo Then you can access your favorite statistics via the star in the header. Q5: What is the real threat to U.S. food security? But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. This amount is subject to market fluctuations. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. Concern about Chinese purchases of U.S. agricultural land increased in late January when the China-based Fufeng Group Ltd. was prevented from building a cornmill on land close to a North Dakota Air Force base after officials called it a security risk. Please do not hesitate to contact me. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. or redistributed. Despite holding little U.S. land, China remains focus of foreign ", U.S. Department of the Treasury. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. 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. So, Lowes operates independently of Walmart. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. 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. Of the 109 countries that own U.S. agricultural land, China ranks No. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. Get full access to all features within our Business Solutions. Foreign Purchases of U.S. Agricultural Land: Facts, Figures, and an 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. 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. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. A paid subscription is required for full access. This material may not be published, broadcast, rewritten, It has held up to $1.3 trillion of U.S. debt. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. That effort includes greater scrutiny of large meat processing companies like JBS and Smithfield, as well as plans to tighten the requirements for meat to be labeled a Product of the USA.. U.S.-based companies also own over nine million acres in other countries. Agricultural Land. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. ", 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. The hardware brand is a publicly-traded company that does not have a majority shareholder. That makes Chinese exports cheaper than American-made goods, increasing sales. 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. Securities. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? "Debt to the Penny. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. "In 2017, the United States produced zero rare earth minerals. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". Quotes displayed in real-time or delayed by at least 15 minutes. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. 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. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. 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. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. Her modest, two-story white farmhouse has . Many Americans find the brand appealing because it has a "Made in America" stamp on its products, however, the company has been owned by Chinese company Haier since 2016. As it is not known exactly how much US land is owned by China. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. "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. Countries Who Own The Most Acres U.S. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. This Treasury-led change makes it difficult to make long-term comparisons. "The Chinese have a strong foothold here in the U.S., and Chinese firms have access to what seems like infinite government lending, and because the country's goal of world dominance is ingrained into the minds of their business leaders," explained Paul Murad, president of Nevada-based real estate firm Metroplex. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. Owning U.S. Treasury notes helps China's economy grow. The Chinese Investor owns about 14% of Snapchat's shares. How do I know if my stimulus was deposited? (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. Manuel Balce Ceneta/AP Photo. 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 House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. 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.