How Much U.S. Debt Does China Own? - Investopedia 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. 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. 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. A paid subscription is required for full access. ", TreasuryDirect. Longley, Robert. World Gold Council. U.S.-based companies also own over nine million acres in other countries. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. Market data provided by Factset. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. Arizona, for instance, has no rules on groundwater pumping as long as it is for a beneficial use, which includes agriculture even if the products are shipped elsewhere. 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 bill, which is yet to move through the House, would necessitate that "an issuer must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the issuer has retained a foreign public accounting firm not subject to inspection by the board. Research Associate, Global Food Security Program. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. This Treasury-led change makes it difficult to make long-term comparisons. 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.. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. That figure was$30.5trillion as of June 30, 2022. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. 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. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. Mexico has gone from 38% to 42%. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. Missouri had formerly banned all foreign ownership of agricultural land in the state, but one week before Shuanghui took over Smithfield, that rule changed to allow foreign entities to own up to 1 percent of the states farmland. The USDA reports that the changes in pasture and crop land holdings since 2009 were mostly due to foreign-owned wind companies signing or terminating long-term leases. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. 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. 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. 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. China has steadily accumulated U.S. Treasury securities over the last few decades. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. Office of the Historian. 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. The remaining 38 percent is held by entities from almost a hundred other countries. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. 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.. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. How America got outmaneuvered in a critical mining race 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. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. 2 Which Country Owes the Most Money to China? It's more of a novelty day like Valentine's Day, rather than a religious celebration. 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. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. 18, far behind No. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. Despite holding little U.S. land, China remains focus of foreign 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. 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. This material may not be published, broadcast, rewritten, While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. Pentagon releases list of companies linked to Chinese military You've successfully subscribed to this newsletter! 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). 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 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. How much of Chinese industry is state-owned? To do that, China had to loosen its peg to the dollar. That would hurt China's competitiveness by raising the yuans value relative to the dollar. How Much U.S. Farmland Does China Really Own? More Than Bill GatesAnd | China's Large Position in U.S. Treasuries. 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. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. Angela Huffman is a sixth-generation farmer in Wyandot County, which, along with Paulding County, has more than 41,000 acres of foreign-owned farmland. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. Longley, Robert. Tucker Carlson: America's Leadership Class Spent Years Covering Up America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Contractionary Monetary Policy. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. ", U.S. Department of the Treasury. "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. "We That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. 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. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Its economy grew more than 10% for the three decades before the 2008 recession. "Major Foreign Holders of Treasury Securities [2000-2020]. Critics claim that the rule change was instrumental in allowing the deal to go through as written, and some members of Congress warned of Chinese government involvement in the purchase. Forbes. It has opened yuan trading centers in London and Frankfurt. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. The Chinese government's theft of intellectual property has been an open secret for decades. That's a decline of. As a Premium user you get access to the detailed source references and background information about this statistic. 5. 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. Ever since the establishment of theBretton Woods Systemin 1944, the value of Chinas currency, the yuan, has been connected or pegged to the value of the U.S. dollar. 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 . The Netherlands is the second largest foreign owner with 4.6 million acres. 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 . In return, American consumers get cheap Chinese products and incoming investment capital. Billions of dollars flow into the U.S. from China every year. China's low-cost competitive strategy seems to be working. It allows the U.S. Treasury to borrow more at low rates. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. These are accounts dedicated to Social Security, Medicare, and other entitlements. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek Anyone can buy U.S. debt. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. You can learn more about the standards we follow in producing accurate, unbiased content in our. Congress can then increase the federal spending that spurs U.S. economic growth. That's when the U.S. Department of the Treasury changed how it measures the debt. Most countries want their currency values to fall so they can win global currency wars. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. 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.. How much of the U.S. land does China own? In, National Association of Realtors. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". Foreign Ownership and Holdings of U.S. Agricultural Land "GDP Growth (Annual %) - China. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. 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. Chart. The products are still made in the USA, but the decisions are made in China. 1 The hardware brand is a publicly-traded company that does not have a majority shareholder. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. Are you interested in testing our business solutions? "The Chinese have a strong foothold here in the U.S., and Chinese firms have access to what seems like infinite government lending, and because the country's goal of world dominance is ingrained into the minds of their business leaders," explained Paul Murad, president of Nevada-based real estate firm Metroplex. Why A Secretive Chinese Billionaire Bought 140,000 Acres Of Land In Texas For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. 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. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). How Much U.S. Debt Does China Own? - The Balance TreasuryDirect. Powered and implemented by FactSet Digital Solutions. 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. ", Congress.gov. 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. Even so, large land purchases present various localized concerns in the places where they occur. ", 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. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. [Online]. Read our. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . 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. It has held up to $1.3 trillion of U.S. debt. How much of the U.S. land does China own? - FinanceBand.com 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. 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. Japan held 1.24 trillion U.S. dollars. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. China is also responding to accusations of manipulation. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. 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.. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. Please create an employee account to be able to mark statistics as favorites. The resulting loss of export business would lead to a major unemployment crisis in China. 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. What is the best way to liquidate stocks? U.S. direct investments in China 2000-2021 | Statista 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. (2021, September 2). March 18, 2016, 2:10 PM. (2022). 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. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. U.S. Debt to China: How Much Is It, and Why? 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. 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. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). 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. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. A repurchase agreement is a form of short-term borrowing for dealers in government securities. Every year since 2010, China has held more than $1 trillion in U.S. debt. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. July 18, 2022. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. 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. In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. Greed Is Good or Is It? Access to this and all other statistics on 80,000 topics from, Show sources information Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. 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. How much of America do foreigners really own? - MarketWatch This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. This acquisition put two Chinese directors on Hilton's Board of 10. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. Disney is in no way owned by Chinese interests in terms of shareholders. 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. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. 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. 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. How much of the United States does China really own? 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. The American Security Institute recently released a report and launched a campaign, featuring a billboard in Times Square, to draw further attention to the extensive array of sectors the Chinese government and its partners have invested into. How Much Land Does China Own? | askBAMLand Legal Statement. 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.
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