The Netherlands is the second largest foreign owner with 4.6 million acres. statistic alerts) please log in with your personal account. Foreign Ownership and Holdings of U.S. Agricultural Land Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. "Major Foreign Holders of Treasury Securities [2000-2020]. The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. [Online]. division (technology), Legendary Entertainment Group (entertainment), Motorola Mobility (technology), Nexteer Automotive (automotive), Riot Games (entertainment), Smithfield Foods (food), Teledyne Continental Motors and Mattituck Services (aerospace), Terex Corp. (machinery), Triple H Coal (mining), Zonare Medical Systems (health care). It could be bigger," he surmised. Profit from the additional features of your individual account. Powered and implemented by FactSet Digital Solutions. 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. Times Square billboard endeavors to warn of creeping Chinese influence. In 2019, it grew at 6.1%, an even more sustainable rate. How Much U.S. Debt Does China Really Own? Mutual Fund and ETF data provided by Refinitiv Lipper. World Gold Council. As a presidential candidate in 2019, Warren said she would support a national version of Iowas law along with safeguards against foreign investors using fake American buyers to circumvent the rules. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. 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. 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. For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. 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. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). 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. Stephen Gandel. 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. 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. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. This Treasury-led change makes it difficult to make long-term comparisons. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. I'm a reporter for Forbes' explainers and trends team. 2 Which Country Owes the Most Money to China? In 2017, the United States imported $4.6 billion in agricultural goods from China, which is also responsible for much of the global supply of soy and pea proteins that are found in nutritional supplements and synthetic meats. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. Access to this and all other statistics on 80,000 topics from, Show sources information For example, the huge amount of debt that the U.S. government owes Chinese lenders has been the subject of countless debates, headline news stories, and political platforms for decades. These include white papers, government data, original reporting, and interviews with industry experts. As it is not known exactly how much US land is owned by China. This is just a small part of the 30 . According to USDA data, foreign investors owned at least 35.2 million acres of U.S. agricultural land in 20192.7 percent of U.S. farmland, an area almost the size of Iowa. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. China does not publish the figures on its international lending. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. 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. Investopedia does not include all offers available in the marketplace. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. 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. 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. . "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. 4356 (117)) that would block any new agricultural purchases by companies that are wholly or partly controlled by the Chinese government and bar Chinese-owned farms from tapping federal support programs. 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 control of. What country owns the most US soil? - coalitionbrewing.com Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. And its findings may be surprising to some. American Companies You Didn't Know Were Owned By Chinese Investors China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. This compensation may impact how and where listings appear. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. "GDP Growth (Annual %) - 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. 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. How much of the USA is owned by China? Quote and Meaning, What Was the Eisenhower Doctrine? Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek In, National Association of Realtors. 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. U.S. consumers benefit from low consumer prices. 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. The United States currently produces more than enough food per capita, even after adjusting for food waste. Agricultural Land. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. How Much U.S. Debt Does China Own? - The Balance China also is liberalizing its control of the yuan, also called the "renminbi." 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. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. Chinas demand for Treasurys helps keep U.S. interest rates low. Q5: What is the real threat to U.S. food security? Japan held 1.24 trillion U.S. dollars. 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 . Japan consistently tops the list, owning about $1.3 trillion as of October 2021. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. 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. Disney is in no way owned by Chinese interests in terms of shareholders. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. 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. Newt says China will 'dominate world' if tech theft isn't stopped, 'it's a matter of life and death', share data with Chinese communist spy agencies. Q4: What federal solutions are being discussed? All rights reserved. Washington, DC 20036. Tucker Carlson: America's Leadership Class Spent Years Covering Up 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. 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. U.S. direct investments in China 2000-2021 | Statista What does China own in the U.S.? | CNBC Explains - YouTube Please create an employee account to be able to mark statistics as favorites. Amanda Jackson has expertise in personal finance, investing, and social services. 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. Of the 109 countries that own U.S. agricultural land, China ranks No. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. China's Large Position in U.S. Treasuries. How much of America do foreigners really own? - MarketWatch Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. Why A Secretive Chinese Billionaire Bought 140,000 Acres Of Land In Texas Second, the Chinese rely on American markets to buy Chinese-produced goods. According to the data, the value of foreign-owned American assets climbed to $32.5 trillion in the second quarter, while total foreign assets held by. China holds more than $1 trillion of the U.S. national debt. Are you interested in testing our business solutions? China's position as the largest foreign holder of U.S. debt gives it some political leverage. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. All rights reserved. WH Groups shareholders include many large U.S.-based financial institutions.". How much of the U.S. land does China own? At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. China owns roughly $1.08 trillion worth of U.S. debt. 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. 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. So, Lowes operates independently of Walmart. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. How America got outmaneuvered in a critical mining race Before June 2010, Treasury reports showed that China held about $843 billion in debt. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. 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). Jamie Lutzisaresearchassociatewiththe Global Food Security Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Caitlin Welsh is the director of the CSIS Global Food Security Program. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. 2021 by the Center for Strategic and International Studies. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. "In 2017, the United States produced zero rare earth minerals. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. As its exports decline, China is less able to invest in U.S. Treasurys. Its research is nonpartisan and nonproprietary. China is also responding to accusations of manipulation. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. 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. China needs this growth to raise its low standard of living. The last significant increase in acres occurred between 2012 and 2013 . 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. See Media Page for more interview, contact, and citation details. companies.". Why China Buys U.S. Debt With Treasury Bonds, A Look at National Debt and Government Bonds, National Debt: Definition, Impact, Key Drivers, Current U.S. Debt, 2020 Election: The Key Economic Issues Explained. How can I increase my credit score by 25 points? The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. "Report on Foreign Portfolio Holdings of U.S. The resulting loss of export business would lead to a major unemployment crisis in China. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. "GDP growth (Annual %) - China. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. 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. The top two foreign holders of U.S. debt are Japan and China. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. ", The World Bank. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. How Much Money Does the U.S. National Debt or Federal Deficit? Is it better to pay off credit card or pay down? Use Ask Statista Research Service. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". 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. How do I know if my stimulus was deposited? "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. to incorporate the statistic into your presentation at any time. And Human Rights Watch has written that China is an'existential threat' to human rights." For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. 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. Manuel Balce Ceneta/AP Photo. To use individual functions (e.g., mark statistics as favourites, set That's when the U.S. Department of the Treasury changed how it measures the debt. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. Fact Check: Does the Chinese Communist Party Own AMC - Newsweek The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Though the magazine named him the largest private farmland owner in January 2021, the Microsoft founder came under fire in early 2022 when he was briefly barred from purchasing 2,100 acres of North Dakota farmland. You only have access to basic statistics. China held 1.1 trillion U.S. dollars in U.S. securities. 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. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. How Did the U.S. National Debt Get So Big? Center for Strategic and International Studies What is the best way to liquidate stocks? The United States owes China approximately $980.8 billion as of May 2022. The products are still made in the USA, but the decisions are made in China. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. 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. While their market shares may be different percentages (Amazon owns 39% of all US ecommerce sales, while Alibaba owns 58.2% of all retail ecommerce shares in China), they each dominate their respective countries in which they began. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. ", International Monetary Fund. 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. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. They use different business structures to further conceal it.. Learn more about how Statista can support your business. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. China "Owns" Us: How the Chinese Are Buying Up America 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.