how much of america is owned by china?
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. Owning U.S. Treasury notes helps China's economy grow. 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. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. 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 offers that appear in this table are from partnerships from which Investopedia receives compensation. Is it better to pay off credit card or pay down? It has held up to $1.3 trillion of U.S. debt. Here's a quick and fascinating breakdown by total. 1 All rights reserved. What's the Difference? The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. 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. [Online]. 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. 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. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. 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. 5. As a Premium user you get access to background information and details about the release of this statistic. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. Individuals can buy and sell U.S. debt, as can central banks for countries like China. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. ", United States Department of Treasury. 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. "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 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. Quotes displayed in real-time or delayed by at least 15 minutes. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. How many times does Coca Cola pay dividends? 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. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. Second, the Chinese rely on American markets to buy Chinese-produced goods. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. You can only download this statistic as a Premium user. In the wake of Covid-19 supply chain disruptions and escalating tensions with China, U.S. lawmakers have specifically increased scrutiny of purchases by Chinese investors. China does not publish the figures on its international lending. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. Register in seconds and access exclusive features. 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. Control of 8,000-plus of American theater screens and other media platforms allows China to project "soft power" and block unflattering depictions of the Chinese government from being presented, both in terms of creative production and mass distribution. Data cover both foreign-owned (29.1 million acres) and U.S. 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. Its economy grew more than 10% for the three decades before the 2008 recession. Of the 109 countries that own U.S. agricultural land, China ranks No. 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 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. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. How much do banks charge to manage a trust? Federal Reserve Bank of St. Louis. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. "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. To do that, China had to loosen its peg to the dollar. Since this strategy is dependent on exportsover $ 452.58 billion of which went to the U.S. in 2020China needs ever-more renminbi to continue to have a lower currency exchange rate than the U.S. dollar, and thus offer cheaper prices for the products it exports. It could be bigger," he surmised. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. No, China does not own Walmart. The hardware brand is a publicly-traded company that does not have a majority shareholder. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. 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. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. 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. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. That's a decline of. The Netherlands is the second largest foreign owner with 4.6 million acres. 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. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. ", Congress.gov. China has the second-greatest amount of U.S. debt held by a foreign country. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular 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. Can you rollover Roth 401k to Roth IRA while still employed? ), after gaining momentum seeded in farm states. These foreign interests are pretty smart. The United States owes China approximately $980.8 billion as of May 2022. China holds more than $1 trillion of the U.S. national debt. 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. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. You can learn more about the standards we follow in producing accurate, unbiased content in our. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. 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. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. ", 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. Chart. 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. China's Large Position in U.S. Treasuries. (2021, September 2). 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 and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. 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. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. Q5: What is the real threat to U.S. food security? "Frequently Asked Questions About the Public Debt. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. 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. It receives these dollars from Chinese companies that receive them as payments for their exports. Washington, DC 20036. Debt to the Penny., U.S. Department of the Treasury. Learn more about how Statista can support your business. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. 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. Quote and Meaning, What Was the Eisenhower Doctrine? Its a massive undertaking to verify who really owns [the land], Maxwell said. Nonagricultural land (such as homesteads and roads) accounted for 2%. 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. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. China, which owns an estimated $972 billion in U.S. Treasuries, is the number-two investor among foreign governments, according to the August 2022 figures released by the U.S. Treasury. 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. World Gold Council. Each bill, bond, and note represents ownership in U.S. debt. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. Nations borrowing from each other may be as old as the concept of money. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. 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. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. 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. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. As its exports decline, China is less able to invest in U.S. Treasurys. "China's Gold Market: Progress and Prospects," Page 2. Securities. China has steadily accumulated U.S. Treasury securities over the last few decades. AMC. China held 1.1 trillion U.S. dollars in U.S. securities. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. If you are an admin, please authenticate by logging in again. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. "Bretton Woods-GATT, 19411947.". Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. Agricultural Land. 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. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. 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. A paid subscription is required for full access. "China's Currency Policy," Page 1. As a major function of its monetary policy, China's central bank, the Peoples Bank of China (PBOC), actively works to prevent this imbalance between the U.S. dollar and renminbi in local markets. All rights reserved. Its also a small percentage of the nearly 900 million acres of total American farmland. Use Ask Statista Research Service. Breaking Down the US Debt and Who Owns It. 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 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. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. While such purchases in low- and middle-income countries have been coveredextensively, they also happen here in the United States. 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). 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. The economy of China is driven by manufacturing and exporting. China is taking steps to make its currency, the yuan, transition to a global currency. Walmart Inc. is the largest retailer in the world and one of the five largest corporations in the world by sales. These are accounts dedicated to Social Security, Medicare, and other entitlements. All rights reserved. China owns roughly $1.08 trillion worth of U.S. debt. 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. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. 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). Even if these bills had passed, they would have strengthened oversight on purchases of U.S. companies, not agricultural land specifically, leaving most land acquisitions unregulated. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. ", The World Bank. As of 2019, a total of 191,000 acres of American land were owned by China. As it is not known exactly how much US land is owned by China. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. 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.. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . 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. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. China's economy would suffer along with everyone else's. So, Lowes operates independently of Walmart. ", The World Bank. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. 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. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. 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. 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. 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. United States Treasury Fiscal Data. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. National Debt or Federal Deficit? 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. How Much Money Does the U.S. Business Solutions including all features. Japan held 1.24 trillion U.S. dollars. Chinas demand for Treasurys helps keep U.S. interest rates low.