This includes the Federal Reserve, which already owns six times as much debt as China. Foreign ownership of U.S. agricultural land doubled from 2009 to 2019, according to U.S. Department of Agriculture (USDA) records, and policymakers have become increasingly concerned about foreign control of the U.S. food supply. "Federal Debt Held by Federal Reserve Banks. 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). As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. 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.. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. The largest holder of U.S. debt is the United States government. Gates is No. Can you rollover Roth 401k to Roth IRA while still employed? The products are still made in the USA, but the decisions are made in China. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. ", Harvard Business Review. Center for Strategic and International Studies Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases (WSJ), North Dakota Turns Against Chinese Corn Mill Project (WSJ). 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. 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. Congressional Research Service. The last significant increase in acres occurred between 2012 and 2013 . As of 2019, a total of 191,000 acres of American land were owned by China. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. ", United States Department of Treasury. How much of the USA is owned by China? Read our. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). CSIS does not take specific policy positions. Quote and Meaning, What Was the Eisenhower Doctrine? Business Solutions including all features. The economy of China is driven by manufacturing and exporting. "Major Foreign Holders of Treasury Securities [2000-2020]. Quotes displayed in real-time or delayed by at least 15 minutes. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. How Much Money Does the U.S. The ideal entry-level account for individual users. Canadian investors hold the largest share of this land, at 29 percent, with the Netherlands, Italy, Germany, and the United Kingdom collectively owning another 33 percent. 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. 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. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. How Much Is the Per Capita Money Supply in the U.S.? The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. This Treasury-led change makes it difficult to make long-term comparisons. ", The World Bank. 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. 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. National Association of Realtors. 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. U.S. Department of the Treasury. Each bill, bond, and note represents ownership in U.S. debt. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. The AFIDA requires foreign entities to report transactions of farmland to the USDA and imposes steep penalties for failing to report (up to 25 percent of the fair market value of the land), although they are rarely enforcedthe last fine imposed under the act was in 2014. 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. 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. All rights reserved. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. 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. Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. (Other Hollywood companies are partly or wholly owned by Chinese interests We know that education is one of the most common reasons that Chinese families purchase real estate in the US, he said. 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. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). 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. Its a massive undertaking to verify who really owns [the land], Maxwell said. Longley, Robert. On the state level, regulations vary. March 18, 2016, 2:10 PM. From 2016, the estimates include only residential transactions. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. How Did the U.S. National Debt Get So Big? From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. 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. It's more of a novelty day like Valentine's Day, rather than a religious celebration. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. China also is liberalizing its control of the yuan, also called the "renminbi." Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. 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. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. China owns roughly $1.08 trillion worth of U.S. debt. Owe China? Anyone can buy U.S. debt. 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 . In, National Association of Realtors. A repurchase agreement is a form of short-term borrowing for dealers in government securities. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. 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. Disney is in no way owned by Chinese interests in terms of shareholders. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. Are you interested in testing our business solutions? National Association of Realtors. The United States owes China approximately $980.8 billion as of May 2022. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? Even at a slow pace, dollar demand would drop. 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. Statista. statistic alerts) please log in with your personal account. 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. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. The . USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. 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. ThoughtCo. "The first priority is to reclaim our critical supply chains so that we can become self-secure instead of reliant on the Chinese government,"Will Coggin, managing director of the American Security Institute, told Fox News. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. By artificially keeping the value of the yuan down, the government reduces the buying power of the Chinese middle class, thus making the sale of exports vital keeping the countrys economy moving. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. 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. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. Mutual Fund and ETF data provided by Refinitiv Lipper. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. 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. You need a Statista Account for unlimited access. 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. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. (2021, September 2). US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. To use individual functions (e.g., mark statistics as favourites, set 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. | How Much U.S. Debt Does China Really Own? Owning U.S. Treasury notes helps China's economy grow. Chinese purchases of U.S agricultural land sparked concern in Congress among a bipartisan group of lawmakersbut 18 other countries own more American agricultural acres than China. These include white papers, government data, original reporting, and interviews with industry experts. Every year since 2010, China has held more than $1 trillion in U.S. debt. 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. She is a library professional, transcriptionist, editor, and fact-checker. Appliances (technology), IBMP.C. Get full access to all features within our Business Solutions. "GDP Growth (Annual %) - Japan, China.". A4: Since the 2013 purchase of Smithfield Foods, multiple bills have been proposed to provide more oversight of foreign investments in U.S. agricultural companies (including in 2017 and 2020), but until recently they each died in committee. Times Square billboard endeavors to warn of creeping Chinese influence. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. "General Government Gross Debt.". Japan consistently tops the list, owning about $1.3 trillion as of October 2021. With most forms of U.S. debt, like Treasury bills, redeemable in U.S. dollars, worldwide trust in the dollar and the U.S. economy, in general, remains Chinas main safeguard for the yuan. 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). It has opened yuan trading centers in London and Frankfurt. US National Debt Clock: How Its Warning Affects You. or redistributed. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. 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. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. Legal Statement. Breaking Down the US Debt and Who Owns It. China held 1.1 trillion U.S. dollars in U.S. securities. Citing national security concerns, the House Appropriations Committee included an amendment in the recent Department of Agriculture-Food and Drug Administration spending bill that prohibits the purchase of agricultural land located in the United States by Chinese-owned companies. Most countries want their currency values to fall so they can win global currency wars. This material may not be published, broadcast, rewritten, There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. 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. Chinese billionaire and businessman Wang. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. This compensation may impact how and where listings appear. 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. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. 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. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . Q4: What federal solutions are being discussed? China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. "How Much U.S. Debt Does China Really Own?" You can only download this statistic as a Premium user. Secondly, China needs American markets to buy their exported goods. Q3: What regulations are currently in place? And its findings may be surprising to some. 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. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. The remaining 38 percent is held by entities from almost a hundred other countries. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. US Navy laments China's shipbuilding supremacy February 27, 2023; US dangles F-35 to lure India away from Russia February 27, 2023; Ukraine marks the future of remote-control war February 23, 2023; China's 'phantom space strike' made to spoof US defenses February 23, 2023; US secretly amassing killer drone swarms to repel China February . Of that, 195,000 acres, worth almost $2 billion when purchased, are. 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. This helps China hold down the cost of its exported goods, which tends to make China, like any nation, a stronger performer in international trade. Walmart owns no shares. Debt to the Penny., U.S. Department of the Treasury. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. "GDP Growth (Annual %) - China. This material may not be published, broadcast, rewritten, or redistributed. How many times does Coca Cola pay dividends? Investopedia does not include all offers available in the marketplace. by Jamie Lutz 1616 Rhode Island Avenue, NW Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. 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. Countries Who Own The Most Acres U.S. ", 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. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. The Netherlands is the second largest foreign owner with 4.6 million acres. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. "China's Gold Market: Progress and Prospects," Page 2. 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.