Forbes. Learn more about how Statista can support your business. Congressional Research Service. (July 18, 2022). "We "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. Additionally, Walmart has never owned Dollar Tree and has no plans to acquire the business. (2022). In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. Market data provided by Factset. 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. How Much U.S. Debt Does China Really Own? Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. What Is the Public Debt, and When Is It Too High? However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. 2 Which Country Owes the Most Money to China? to incorporate the statistic into your presentation at any time. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. "Bretton Woods-GATT, 19411947.". That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. "How Much U.S. Debt Does China Really Own?" "How Much U.S. Debt Does China Really Own?" Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. 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. Is it better to pay off credit card or pay down? It has held up to $1.3 trillion of U.S. debt. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. 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. 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. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. The products are still made in the USA, but the decisions are made in China. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. That figure was$30.5trillion as of June 30, 2022. On Friday, Starwood Hotels agreed to be acquired by Anbang, a Chinese insurance company that is rapidly buying up U.S. hotels, for over $13 billion . It is responsible for lower interest rates and cheap consumer goods. The last significant increase in acres occurred between 2012 and 2013 . Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. It has opened yuan trading centers in London and Frankfurt. "GDP Growth (Annual %) - China. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. The Chinese government's theft of intellectual property has been an open secret for decades. 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. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. Even so, large land purchases present various localized concerns in the places where they occur. The Pentagon released a list of 20 companies that it says are owned or controlled by Communist China's military and operate in the US - including tech giant Huawei, according to a report. Data cover both foreign-owned (29.1 million acres) and U.S. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. 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. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. A government bond is issued by a government at the federal, state, or local level to raise debt capital. 04 Mar 2023 03:14:21 WH Group is a publicly-traded company with shareholders around the world. 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. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. To use individual functions (e.g., mark statistics as favourites, set March 18, 2016, 2:10 PM. Stephen Gandel. Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions Is Americas Debt to China Really So Bad? China has the second-greatest amount of U.S. debt held by a foreign country. 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. (ChinaOwnsUs campaign). 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. Mutual Fund and ETF data provided by Refinitiv Lipper. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. 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). The United States currently produces more than enough food per capita, even after adjusting for food waste. 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. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. 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. That's when the U.S. Department of the Treasury changed how it measures the debt. Use Ask Statista Research Service. 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. Are you interested in testing our business solutions? Historically, between 20,000 and 40,000 residential properties were bought by. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. At some price point, U.S. consumers would buy American products instead. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. Securities. 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. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Amanda Jackson has expertise in personal finance, investing, and social services. This material may not be published, broadcast, rewritten, or redistributed. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Countries Who Own The Most Acres U.S. China's Large Position in U.S. Treasuries. Christmas in Mainland China is not a public holiday and is not related to religion at all. ", TreasuryDirect. China owns roughly $1.08 trillion worth of U.S. debt. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. 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. 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. As soon as this statistic is updated, you will immediately be notified via e-mail. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. China's economic growth has slowed over the years. 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. Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. 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. The . 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.. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. With the U.S. dollar considered one of the safest and most stable currencies in the world, dollar-pegging helps the Chinese government maintain the stability and value of the yuan. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. China does not publish the. Access to this and all other statistics on 80,000 topics from, Show sources information It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. ", National Association of Realtors, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 Statista, https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/ (last visited March 04, 2023), Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph], National Association of Realtors, July 18, 2022. In 2019, it grew at 6.1%, an even more sustainable rate. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. As a Premium user you get access to background information and details about the release of this statistic. Office of the Historian. 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. From 2016, the estimates include only residential transactions. David Schlessinger and I founded Five Below 16 years ago with a promise to build an amazing store for teens and pre-teens that offers trend-right, high-quality merchandise all at $5 or less, said Tom Vellios . 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 . 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. Q3: What regulations are currently in place? 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. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. 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. It allows the U.S. Treasury to borrow more at low rates. ", U.S. Department of the Treasury. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . 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. 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). U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. Read our. But, exactly how much does the nation own? I'm a reporter for Forbes' explainers and trends team. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. 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. 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. As a result, the public does not have a complete picture of which foreign entities own how much U.S. farmland or what the land is being used for. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. ", Harvard Business Review. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. These foreign interests are pretty smart. 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. Federal Reserve Bank of St. Louis. U.S. Debt to China: How Much Is It, and Why? If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. Longley, Robert. 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. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. 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. Market data provided by Factset. 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. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. 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. 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. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. 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. According to sources, Time Magazine received $700,000, the Financial Times $371,577, Foreign Policy Magazine $291,000, the Los Angeles Times $272,000, and other notable media outlets received more than $1 million. 2023 Center for Strategic & International Studies. Of the 109 countries that own U.S. agricultural land, China ranks No. This Treasury-led change makes it difficult to make long-term comparisons. These are especially vital not only for high-technology products such as smartphones and electric vehicles but for U.S. frontline weapons including the F-35 fighter, which requires 920 pounds of rare earth minerals. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. Currently, you are using a shared account. The resulting loss of export business would lead to a major unemployment crisis in China. 2023 FOX News Network, LLC. China's low-cost competitive strategy seems to be working. Business Solutions including all features. 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. 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. World Gold Council. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. 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. ThoughtCo. For example, foreign investors can set up limited liability companies in the U.S. and designate an American owner to circumvent the reporting requirements while still controlling the operation behind the scenes, said Joe Maxwell, president of the progressive advocacy group Family Farm Action. All rights reserved. China needs this growth to raise its low standard of living. ", International Monetary Fund. Individuals can buy and sell U.S. debt, as can central banks for countries like China. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Milos Maricic, an international affairs expert and World Economic Forum contributor, concurred that while China owns close to $150 billion in U.S. companies not particularly huge in comparison to the U.S. economy there is a lot about the available figure that we simply do not know. How many times does Coca Cola pay dividends? 1 When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. And its findings may be surprising to some. National Association of Realtors. ", Congress.gov. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. This statistic is not included in your account. Legal Statement. But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. "Major Foreign Holders of Treasury Securities.". 2023 FOX News Network, LLC. Two bills introduced in the House of Representatives and the Senate argue foreign influence on American agricultural land could affect Americas economy, food supply, and national security. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. In 2011, the total U.S. debt stood at $14.3 trillion. Does paying off all debt increase credit score? U.S . This acquisition put two Chinese directors on Hilton's Board of 10. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. Its economy grew more than 10% for the three decades before the 2008 recession. 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. This compensation may impact how and where listings appear. As it is not known exactly how much US land is owned by China. WH Groups shareholders include many large U.S.-based financial institutions.". 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. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. To do that, China had to loosen its peg to the dollar. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. 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. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. U.S.-based companies also own over nine million acres in other countries. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. 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. "Federal Debt Held by Federal Reserve Banks. Its a massive undertaking to verify who really owns [the land], Maxwell said. Here's a quick and fascinating breakdown by total. You can only download this statistic as a Premium user. More than 200 foreign firms mostly Chinese with a combined market capitalization of almost $2 trillion are said to not be meeting this standard; so their stocks are traded, but U.S. investors have limited insight into what is going on internally with the companies. 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. 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. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. Quotes displayed in real-time or delayed by at least 15 minutes. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. 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. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Nonagricultural land (such as homesteads and roads) accounted for 2%. Furthermore, policymakers have signaled no efforts to improve state- or national-level information on foreign purchases of U.S. farmland, leaving the true picture obscured. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. 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. 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. How Much Is the Per Capita Money Supply in the U.S.? "How Much Money Does the World Owe China? It buys available excess U.S. dollars from the exporters and gives them the required renminbi. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. The United States owes China approximately $980.8 billion as of May 2022. I would suggest that we sit down and we work through it so we can accomplish our objective, but do it in a way that is sensitive to all those who might be somewhat offended by the approach..