House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. Q4: What federal solutions are being discussed? Washington, DC 20036. ", U.S. Department of the Treasury. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. So, Lowes operates independently of Walmart. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. | ", TreasuryDirect. "Major Foreign Holders of Treasury Securities.". Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. The ideal entry-level account for individual users. 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. Research Associate, Global Food Security Program. 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. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. Q2: What threats do foreign acquisitions of U.S. farmland pose? Its a massive undertaking to verify who really owns [the land], Maxwell said. 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. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. 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. Currently, you are using a shared account. "Report on Foreign Portfolio Holdings of U.S. China's position as the largest foreign holder of U.S. debt gives it some political leverage. The reality is very different than the rhetoric. You can only download this statistic as a Premium user. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. 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. 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. 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. Individuals can buy and sell U.S. debt, as can central banks for countries like China. 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. I'm a reporter for Forbes' explainers and trends team. 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 Large Position in U.S. Treasuries. What's the Difference? China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. 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. 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. The largest holder of U.S. debt is the United States government. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. She is a library professional, transcriptionist, editor, and fact-checker. 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. 2023 Center for Strategic & International Studies. 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. This Treasury-led change makes it difficult to make long-term comparisons. 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. Legal Statement. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. 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. 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. 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. Crops beings harvested on an Iowa farm in 2018, Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases, North Dakota Turns Against Chinese Corn Mill Project. Although Congress has become increasingly concerned about Chinese land purchases, investors from China currently own only a small fraction of this land, at 191,652 acres (0.05 percent of the total). Profit from the additional features of your individual account. 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. 1616 Rhode Island Avenue, NW Times Square billboard endeavors to warn of creeping Chinese influence. Owning U.S. Treasury notes helps China's economy grow. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. Other foreign holders included oil-exporting countries and Caribbean banking centers. Get full access to all features within our Business Solutions. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". China is also responding to accusations of manipulation. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Access to this and all other statistics on 80,000 topics from, Show sources information 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. 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. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. Stephen Gandel. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. "Under President Trump, the U.S. was the first to recognize their nonstop deceits, and now the rest of the world has a clearer picture of China's ambition. Of that, 195,000 acres, worth almost $2 billion when purchased, are owned by 85 Chinese investors, which could be individuals, companies or the government. This statistic is not included in your account. No, China does not own Walmart. 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. "How Much Money Does the World Owe China? Market data provided by Factset. Dalian Wanda purchased a majority stake in AMC for $2.6 billion, making AMC the largest theater operator at the time, according to a report from Reuters. Office of the Historian. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. China does not publish the. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". This includes the Federal Reserve, which already owns six times as much debt as China. In addition to federal action, some states, like Arizona, could do more to protect their local resources and communities from exploitation by domestic and foreign entities. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. That's a decline of. The top two foreign holders of U.S. debt are Japan and China. What Is the Public Debt, and When Is It Too High? While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. How Much Money Does the U.S. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. U.S. consumers benefit from low consumer prices. 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.. Smithfield is vertically integrated and owns all aspects of its supply chain, meaning that WH Group now controls a significant portion of U.S. pork production and revenue in addition to farmland. 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. 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. China has become one of the largest economies in the world. Mexico has gone from 38% to 42%. ", 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. 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 simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. In 2019, it grew at 6.1%, an even more sustainable rate. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. (2022). ", U.S. Department of the Treasury. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. 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. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. A repurchase agreement is a form of short-term borrowing for dealers in government securities. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . National Association of Realtors. 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. 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. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. How do I know if my stimulus was deposited? Chinas demand for Treasurys helps keep U.S. interest rates low. Manuel Balce Ceneta/AP Photo. Please create an employee account to be able to mark statistics as favorites. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? 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. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. Powered and implemented by FactSet Digital Solutions. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. These are accounts dedicated to Social Security, Medicare, and other entitlements. You can learn more about the standards we follow in producing accurate, unbiased content in our. Here's a quick and fascinating breakdown by total. Amanda Jackson has expertise in personal finance, investing, and social services. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. But, exactly how much does the nation own? 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 . Mutual Fund and ETF data provided by Refinitiv Lipper. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. 1 Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. 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. 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 . World Gold Council. 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. Congress can then increase the federal spending that spurs U.S. economic growth. "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. 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. 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.. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. Then you can access your favorite statistics via the star in the header. 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. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. Does paying off all debt increase credit score? China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. The data is entirely reliant on self-reporting, and the USDA does not check it for completeness and accuracy, so there are frequent typos, omissions, and outdated information. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. 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. It has opened yuan trading centers in London and Frankfurt. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. Definition and Impact. "The first priority is to reclaim our critical supply chains so that we can become self-secure instead of reliant on the Chinese government,"Will Coggin, managing director of the American Security Institute, told Fox News. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. This compensation may impact how and where listings appear. While many politicians like to angrily proclaim that China owns the United States because it owns so much of the U.S. debt, economists say that claim is far more rhetoric than fact. For example, critics say that should the Chinese government suddenly call indemand immediate repaymentof all of the U.S. governments obligations, the American economy would be hopelessly crippled. 2 This amounts to more than 13% of the U.S. debt held overseas and about 3.2% of the United States' total debt load. CSIS does not take specific policy positions. Market data provided by Factset. ", The World Bank. 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. The push to drain Chinas influence from the U.S. economy has reached Americas farm country, as congressional lawmakers from both parties are looking at measures to crack down on foreign purchases of prime agricultural real estate. Christmas in Mainland China is not a public holiday and is not related to religion at all. As a Premium user you get access to the detailed source references and background information about this statistic. 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. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. You need a Statista Account for unlimited access. 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 . The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. 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. And its findings may be surprising to some. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. 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. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. China needs this growth to raise its low standard of living. Securities. 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). SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. National Association of Realtors. Statista. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. What Would Happen if China Were to Call In Its Debt? 04 Mar 2023 03:14:21 China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. 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.. US National Debt Clock: How Its Warning Affects You. WH Groups shareholders include many large U.S.-based financial institutions.". Nations borrowing from each other may be as old as the concept of money. 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. Most of the rest of the U.S. debt is owned by individual investors, corporations and other public entitiesincluding foreign creditors like the Chinese government. Congressional Research Service. 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. It is responsible for lower interest rates and cheap consumer goods. 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. 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. "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. A5: Land grabbing is more of an immediate threat to food security in other parts of the world than it is in the United States, but it could become a greater threat in the future if more farmland is sold and if foreign investors continue to buy available farmland. Data cover both foreign-owned (29.1 million acres) and U.S. That changed with the USMCA. Walmart owns no shares. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. "Federal Debt Held by Federal Reserve Banks. As of 2019, a total of 191,000 acres of American land were owned by China. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. Before June 2010, Treasury reports showed that China held about $843 billion in debt.