Since 2016, a company owned by Xinjiang-based real estate tycoon Sun Guangxin had spent an estimated $110 million buying up land in Texas' Val Verde County. 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. ", International Monetary Fund. 5. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Who owns America? Hint: It's not China - CNN The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. How much of the USA is owned by China? (July 18, 2022). See Media Page for more interview, contact, and citation details. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. Powered and implemented by FactSet Digital Solutions. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . "GDP Growth (Annual %) - China. I'm a reporter for Forbes' explainers and trends team. Nonagricultural land (such as homesteads and roads) accounted for 2%. (2022). What is the highest credit limit for Chase Sapphire? 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. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. Nations borrowing from each other may be as old as the concept of money. (2021, September 2). Federal Reserve Bank of St. Louis. Historically, between 20,000 and 40,000 residential properties were bought by. However, the US government estimates that Chinese-owned entities own approximately 7,000 acres of land in the US, which is a small fraction of the 2. . This also reduces the purchasing power of Chinese earners. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. 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. 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 . That figure was$30.5trillion as of June 30, 2022. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. 1 The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM Even at a slow pace, dollar demand would drop. As of 2019, a total of 191,000 acres of American land were owned by China. The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. For example, the huge amount of debt that the U.S. government owes Chinese lenders has been the subject of countless debates, headline news stories, and political platforms for decades. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Japan held 1.24 trillion U.S. dollars. The Biggest American Companies Now Owned by the Chinese - Yahoo! "Federal Debt Held by Federal Reserve Banks. What does China own in the U.S.? | CNBC Explains - YouTube 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. No, China does not own Walmart. 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. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. Market data provided by Factset. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. China also is liberalizing its control of the yuan, also called the "renminbi." Q1: Where and why are foreign entities purchasing farmland in the United States? It receives these dollars from Chinese companies that receive them as payments for their exports. Statista. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. Gates is No. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. 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.. "In 2017, the United States produced zero rare earth minerals. 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. Mutual Fund and ETF data provided by Refinitiv Lipper. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. Second, the Chinese rely on American markets to buy Chinese-produced goods. Legal Statement. How do I know if my stimulus was deposited? When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? Are you interested in testing our business solutions? 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. Pentagon releases list of companies linked to Chinese military "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. "China's Currency Policy," Page 1. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. What US companies are now owned by China? Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. If you are an admin, please authenticate by logging in again. How Much U.S. Debt Does China Own? - The Balance 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. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. A repurchase agreement is a form of short-term borrowing for dealers in government securities. "GDP growth (Annual %) - China. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. As a Premium user you get access to the detailed source references and background information about this statistic. Get full access to all features within our Business Solutions. Longley, Robert. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. ", Harvard Business Review. (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. How Much U.S. Debt Does China Really Own? Even so, large land purchases present various localized concerns in the places where they occur. China's economic growth has slowed over the years. 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. Of the 109 countries that own U.S. agricultural land, China ranks No. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. 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. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. 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. Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. 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. China has the second-greatest amount of U.S. debt held by a foreign country. You've successfully subscribed to this newsletter! 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. And its findings may be surprising to some. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . 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. Amanda Jackson has expertise in personal finance, investing, and social services. 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. Haier bought GE for $5.4 billion, a recording breaking sum at that time. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. First, because U.S. securities like Treasury bills come with varying maturity dates, it would be impossible for the Chinese to call them all in at the same time. 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. Congressional Research Service. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. Definition and Analysis, What Is National Debt and Where It Fits Within the Economy, Alexander Hamilton and the National Economy, The History of US Government Financial Bailouts, What Was the Open Door Policy in China? 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. How much of the U.S. land does China own? - FinanceBand.com 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. "Chinese companies have been carrying out unchecked reverse mergers for years now, and the media (influence) has been going under the radar for years now," Murad added. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. Investopedia does not include all offers available in the marketplace. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). "Major Foreign Holders of Treasury Securities.". "Debt to the Penny. 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 Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. How America got outmaneuvered in a critical mining race Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. Its a massive undertaking to verify who really owns [the land], Maxwell said. Q2: What threats do foreign acquisitions of U.S. farmland pose? 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. WH Group is a publicly-traded company with shareholders around the world. The US National Debt and How It Affects You. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. While some states have strict laws in place, others are more open to foreign investments. 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 . U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. China owns roughly $1.08 trillion worth of U.S. debt. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. 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. 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.