2023 FOX News Network, LLC. 1 National Debt or Federal Deficit? Then you can access your favorite statistics via the star in the header. The National Young Farmers Coalition (NYFC) anticipates that two-thirds of farmland will change hands over the next decade as farmers retire, meaning that more land could become available for foreign purchase. 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. That's when the U.S. Department of the Treasury changed how it measures the debt. (July 18, 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. The resulting loss of export business would lead to a major unemployment crisis in China. At some price point, U.S. consumers would buy American products instead. 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. 5. Data cover both foreign-owned (29.1 million acres) and U.S. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. In addition, many economists contend that the reported U.S. debt should include at least another $120 trillion in unfunded future liabilitiesmoney the government does not currently have but is legally obligated to pay people in the future. Its a massive undertaking to verify who really owns [the land], Maxwell said. "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. Profit from the additional features of your individual account. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. ", The World Bank. The Chinese government's theft of intellectual property has been an open secret for decades. Here's a quick and fascinating breakdown by total. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. 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. To use individual functions (e.g., mark statistics as favourites, set 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. 18, far behind No. That figure was$30.5trillion as of June 30, 2022. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. (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. Congress can then increase the federal spending that spurs U.S. economic growth. You can learn more about the standards we follow in producing accurate, unbiased content in our. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. to incorporate the statistic into your presentation at any time. AMC. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. Scrutiny of foreign-owned agricultural operations receiving taxpayer subsidies has also been rising in recent years after meatpacking conglomerates like the U.S. subsidiary of Brazilian-owned JBS received millions of dollars under the Trump administrations trade bailout starting in 2018. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. That changed with the USMCA. 1 Canada (12.8 million acres) and even and the Cayman Islands (672,000). The United States owes China approximately $980.8 billion as of May 2022. 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. Debt to the Penny., U.S. Department of the Treasury. U.S. Debt to China: How Much Is It, and Why? That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. What is the best way to liquidate stocks? By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. ", The World Bank. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. Longley, Robert. Chinese purchases of U.S agricultural land sparked concern in Congress among a bipartisan group of lawmakersbut 18 other countries own more American agricultural acres than China. 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. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. (2021, September 2). ", United States Department of Treasury. Citing staff shortages, the Department of Agriculture didnt penalize foreign parties for violating reporting rules from 2015 to 2018, prompting 28 lawmakers to criticize the departments complete lack of accountability and oversight Monday in a letter obtained by the Wall Street Journal. Mexico has gone from 38% to 42%. 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. 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. China also is liberalizing its control of the yuan, also called the "renminbi." Read our. 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. 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. All Rights Reserved. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. 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. In 2019, it grew at 6.1%, an even more sustainable rate. 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. (ChinaOwnsUs campaign). https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). Is Americas Debt to China Really So Bad? It has held up to $1.3 trillion 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. Quotes displayed in real-time or delayed by at least 15 minutes. Available: https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022, Available to download in PNG, PDF, XLS format, Cross-border commercial real estate investment in the United States, Origin of foreign residential buyers in the U.S. 2016-2018, Cross-border commercial real estate investments in the U.S. 2018, by country, Number of commercial properties in the U.S. 2018, by investor country, Property purchased by foreign buyers in U.S. 2009-2022, by type of area, Share of commercial space leased by foreign clients U.S. 2018, by size, Share of commercial space leased by foreign clients U.S. 2018, by lease term, Perception of real estate market among foreign investors in U.S. 2016-2018, Perception of U.S. real estate prices among foreign buyers 2018, Reasons why foreign buyers don't buy real estate in the U.S. 2019, Share of Chinese buyers of residential property in the U.S. 2011-2022, Total residential property sales to Chinese buyers in the U.S. 2010-2022, Total number of residential properties bought by Chinese buyers in the U.S. 2010-22, Average purchase price of residential property by Chinese buyers in the U.S. 2010-22, Median purchase price of residential property by Chinese buyers in the U.S. 2010-2022, Share of CRE investments from China/Hong Kong in the U.S. 2011-2017, by investor type, Value of China/Hong Kong CRE investments made in the U.S. 2011-2017, Share of Canadian buyers of residential property in the U.S. 2011-2022, Total residential property sales to Canadian buyers in the U.S. 2010-2022, Average purchase price of residential property by Canadian buyers in the U.S. 2010-22, Median purchase price of residential property by Canadian buyers in the U.S. 2010-22, Share of UK buyers of residential property in the U.S. 2011-2022, Total residential property sales to buyers from the UK in the U.S. 2010-2021, Total number of residential properties purchased by UK buyers in the U.S. 2010-2021, Average purchase price of residential property by UK buyers in the U.S. 2010-2021, Median purchase price of residential property by UK buyers in the U.S. 2010-2021, Total residential property sales to Indian buyers in the U.S. 2010-2022, Average purchase price of residential property by Indian buyers in the U.S. 2010-2022, Median purchase price of residential property by Indian buyers in the U.S. 2010-2022, Share of Mexican buyers of residential property in the U.S. 2011-2022, Total residential property sales to Mexican buyers in the U.S. 2010-2022, Total number of residential properties bought by Mexican buyers in the U.S. 2010-2022, Average purchase price of residential property by Mexican buyers in the U.S. 2010-22, Median purchase price of residential property by Mexican buyers in the U.S. 2010-2022, Average price of residential property in France 2022, by property type, Breakdown of housings in France 2020, by square meter price, Average price of rental flats per square meter in France 2020, Average rent price for apartments in the largest French cities 2022, Value of commercial real estate investment in France 2021-Q1 2022, by type, Origin of major foreign buyers of U.S. residential property in 2022, Share of Brazilian buyers of residential property in the U.S. 2011-2020, Share of German buyers of residential property in the U.S. 2011-2020, Housing purchase transactions volume Jeju, South Korea 2009-2021, Housing transactions volume Busan, South Korea 2009-2021, Housing transactions volume Gyeonggi, South Korea 2009-2021, Housing purchase transactions volume Gyeonggi, South Korea 2009-2021, Housing transactions volume Jeju, South Korea 2009-2021, Realtors' sources of referrals for foreign residential property buyers U.S. 2022, Apartment purchase transactions volume Incheon, South Korea 2009-2021, Find your information in our database containing over 20,000 reports, Chinese buyers were responsible for only six percent of all sales to foreigners, bought the most U.S. residential property, property sales to foreign buyers peaked at 153 U.S. dollars in 2017. 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. "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. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). You need a Statista Account for unlimited access. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. by Jamie Lutz 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. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. Stephen Gandel. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. A repurchase agreement is a form of short-term borrowing for dealers in government securities. Q3: What regulations are currently in place? 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. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. Its research is nonpartisan and nonproprietary. If you are an admin, please authenticate by logging in again. It is responsible for lower interest rates and cheap consumer goods. ", U.S. Department of the Treasury. 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 . "Major Foreign Holders of Treasury Securities.". 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. And while the U.S. grants China permission to buy its companies, China does not allow U.S. companies to operate the same way on their soil. For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. Across the country, the 2013 purchase of Smithfield Foods by the Chinese firm Shuanghui, now called WH Group, received national attention and escalated concerns about Chinese intervention in U.S. food systems. "GDP growth (Annual %) - China. The other countries that hold the most U.S. debt include the U.K., with $634 billion owed; Switzerland, holding $294.1 billion in debt securities; and the Cayman Islands, slightly behind Switzerland with $293.2 billion of the United States' debt. How much of the U.S. land does China own? Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. Mutual Fund and ETF data provided by Refinitiv Lipper. While some states have strict laws in place, others are more open to foreign investments. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. Other foreign holders included oil-exporting countries and Caribbean banking centers. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Policymakers should, instead, consider the many threats facing the future of the U.S. food system and ensure that current and aspiring farmers have the resources they need to secure long-term U.S. food production, starting with access to affordable farmland. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? 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. 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. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. 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. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. This Treasury-led change makes it difficult to make long-term comparisons. 41 on The Land Reports 2022 list of Americans who own the most land. 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 . Are you interested in testing our business solutions? ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. It could be bigger," he surmised. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. 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. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. Contractionary Monetary Policy. Nations borrowing from each other may be as old as the concept of money. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. | Does paying off all debt increase credit score? March 18, 2016, 2:10 PM. "China's Currency Policy," Page 1. 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. . A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. Longley, Robert. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. 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. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. 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. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. How Did the U.S. National Debt Get So Big? 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. But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). Please do not hesitate to contact me. 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. July 18, 2022. "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. 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. Show publisher information Treasury securities are freely traded around the world. How much of Chinese industry is state-owned? Individuals can buy and sell U.S. debt, as can central banks for countries like China. Market data provided by Factset. The ideal entry-level account for individual users. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. That makes Chinese exports cheaper than American-made goods, increasing sales. "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. Along similar lines, climate-related efforts to increase biofuel production and expand afforestation and reforestation could reduce the amount of land available for food production in the future. National Association of Realtors. Its also a small percentage of the nearly 900 million acres of total American farmland. Of the 109 countries that own U.S. agricultural land, China ranks No. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. Powered and implemented by FactSet Digital Solutions. That data also shows that the. China is taking steps to make its currency, the yuan, transition to a global currency. 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. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. But, exactly how much does the nation own? What Is the Public Debt, and When Is It Too High? Q2: What threats do foreign acquisitions of U.S. farmland pose? Legal Statement. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. CSIS does not take specific policy positions. China has steadily accumulated U.S. Treasury securities over the last few decades. The post, which has been shared over 256,000 times as of April 14, is headlined with "read this before buying meat." "The hogs will still be raised here, but slaughtered and packaged for . They use different business structures to further conceal it.. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. 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 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. WH Groups shareholders include many large U.S.-based financial institutions.". Japanese-owned debt doesn't receive nearly as much negative attention as Chinese-owned debt, ostensibly because Japan is seen as a friendlier nation and the Japanese economy hasn't grown as fast as China's year after year. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. A1: USDA records provide the best source of information on foreign-held agricultural land, although they are still incomplete and contain many errors (as explained in A3 below). What Would Happen if China Were to Call In Its Debt? Chart. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. Billions of dollars flow into the U.S. from China every year. It receives these dollars from Chinese companies that receive them as payments for their exports. The 2011 U.S. Debt Ceiling Crisis was a contentious debate on the borrowing limit of the United States government in July 2011. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. She is a library professional, transcriptionist, editor, and fact-checker. 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.. 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. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. That would hurt China's competitiveness by raising the yuans value relative to the dollar. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. China's economic growth has slowed over the years.

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