Powered and implemented by FactSet Digital Solutions. Here's a quick and fascinating breakdown by total. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. This includes the Federal Reserve, which already owns six times as much debt as China. The buying gorge went from April 2021 to March 2022 and . "Report on Foreign Portfolio Holdings of U.S. In Texas, a Chinese based energy company purchased more than 130,000 acres of land near Laughlin Air Force Base and is now attempting to build a wind farm to access the U.S. power grid. Even so, large land purchases present various localized concerns in the places where they occur. Countries with lower currency values export more, since their products cost less when sold in foreign countries. This amount is subject to market fluctuations. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. Quotes displayed in real-time or delayed by at least 15 minutes. It has held up to $1.3 trillion of U.S. debt. WH Group is a publicly-traded company with shareholders around the world. 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. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. 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. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. United States Treasury Fiscal Data. Each bill, bond, and note represents ownership in U.S. debt. Chart. Walmart owns no shares. and Caitlin Welsh. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. Office of the Historian. Japan held 1.24 trillion U.S. dollars. That's when the U.S. Department of the Treasury changed how it measures the debt. ", The World Bank. (ChinaOwnsUs campaign). 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. 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. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Q5: What is the real threat to U.S. food security? Gates is No. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. How do I know if my stimulus was deposited? The economy of China is driven by manufacturing and exporting. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. Disney is in no way owned by Chinese interests in terms of shareholders. 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. 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). Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. or redistributed. 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. The data is based on a 1978 law directing foreign nationals to report their U.S. agricultural holdings to USDA a requirement that can be difficult for the department to enforce. If you are an admin, please authenticate by logging in again. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. Mutual Fund and ETF data provided by Refinitiv Lipper. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. by Jamie Lutz Agricultural Land. How much of Chinese industry is state-owned? It allows the U.S. Treasury to borrow more at low rates. In return, American consumers get cheap Chinese products and incoming investment capital. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . And Human Rights Watch has written that China is an'existential threat' to human rights." Federal Reserve Bank of St. Louis. 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. Anyone can buy U.S. debt. Longley, Robert. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. ", U.S. Department of the Treasury. 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. That effort includes greater scrutiny of large meat processing companies like JBS and Smithfield, as well as plans to tighten the requirements for meat to be labeled a Product of the USA.. China does not publish the. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. Interest on the National Debt and How It Affects You, US Debt by President: By Dollar and Percentage, US Budget Deficit by Year Compared to GDP, the National Debt, and Events, Chinas Economic Slowdown and How It Affects You, China's Economy and Its Effect on the U.S. Economy, China's Currency, the Yuan, and How It Affects You, How the Yuan Could Become a Global Currency, Debt Ceiling Dictionary: Your Guide to the Jargon, Major Foreign Holders of Treasury Securities, Report on Foreign Portfolio Holdings of U.S. Securities, Major Foreign Holders of Treasury Securities [2000-2020], Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States. Among all of those foreign creditors to which America owes money, China led the way at $1.17 trillion, followed by Japan, at $1.07 trillion as of January 2018. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. As soon as this statistic is updated, you will immediately be notified via e-mail. What's the Difference? That figure was$30.5trillion as of June 30, 2022. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". ThoughtCo. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. 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. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. TreasuryDirect. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. 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. 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. China's low-cost competitive strategy seems to be working. National Debt or Federal Deficit? 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. 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. (Smithfield said in a later statement pertaining to their ownership structure that they are "a U.S. company that provides more than 40,000 American jobs and partners with thousands of American farmers. The top two foreign holders of U.S. debt are Japan and China. 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.. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. 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. No, China does not own Walmart. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. How much do banks charge to manage a trust? ", TreasuryDirect. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). The renewed focus on curbing foreign farm purchases comes as Biden and Agriculture Secretary Tom Vilsack roll out a series of actions to bolster the food supply chain, following major disruptions caused by the pandemic. Contractionary Monetary Policy. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. ", United States Department of Treasury. "Bretton Woods-GATT, 19411947.". We also reference original research from other reputable publishers where appropriate. "Major Foreign Holders of Treasury Securities. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. Chinese billionaire and businessman Wang. Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions The US National Debt and How It Affects You. Owe China? Second, the Chinese rely on American markets to buy Chinese-produced goods. 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 . 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. 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. 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. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. You need at least a Starter Account to use this feature. Learn more about how Statista can support your business. This helps inflate the value of the dollar. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. 1616 Rhode Island Avenue, NW 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. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? "Debt Position and Activity Report, June 2017," Page 1. China holds more than $1 trillion of the U.S. national debt. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. 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. Use Ask Statista Research Service. Appliances (technology), IBMP.C. Please create an employee account to be able to mark statistics as favorites. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. 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. The ideal entry-level account for individual users. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. 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. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. ", The World Bank. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. CSIS does not take specific policy positions. The hardware brand is a publicly-traded company that does not have a majority shareholder. Investopedia requires writers to use primary sources to support their work. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. 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. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. The United States currently produces more than enough food per capita, even after adjusting for food waste. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. See Media Page for more interview, contact, and citation details. WH Groups shareholders include many large U.S.-based financial institutions.". 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. According to the U.S. Census Bureau, the U.S. has been suffering from a significant trade deficit with China since 1985, meaning that the U.S. buys more goods and services from China than China buys from the U.S. Chinese exporters receive U.S. dollars for their goods sold to the U.S. National Association of Realtors. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. You've successfully subscribed to this newsletter! 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). This statistic is not included in your account. This also reduces the purchasing power of Chinese earners. How much of the U.S. land does China own? When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Nations borrowing from each other may be as old as the concept of money. Securities. 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. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. 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. 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. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. statistic alerts) please log in with your personal account. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. 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. It is not only foreign companies who take advantage of this regulatory loophole, howevercompanies from other states and cities around the United States are also buying up land in Arizona to take advantage of the states loose water regulations, putting Arizonas long-term water resources at risk.
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