how much of america is owned by china?

This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. Why China Buys U.S. Debt With Treasury Bonds, A Look at National Debt and Government Bonds, National Debt: Definition, Impact, Key Drivers, Current U.S. Debt, 2020 Election: The Key Economic Issues Explained. 2023 FOX News Network, LLC. You need at least a Starter Account to use this feature. Use Ask Statista Research Service. 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. US National Debt Clock: How Its Warning Affects You. 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and the USDA does not check it for completeness and accuracy, so there are frequent typos, omissions, and outdated information. Former Vice President Mike Pence speaks during an event. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Christmas in Mainland China is not a public holiday and is not related to religion at all. Citing national security concerns, the House Appropriations Committee included an amendment in the recent Department of Agriculture-Food and Drug Administration spending bill that prohibits the purchase of agricultural land located in the United States by Chinese-owned companies. 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. Breaking Down the US Debt and Who Owns It. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." Her modest, two-story white farmhouse has . Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. Quotes displayed in real-time or delayed by at least 15 minutes. ", U.S. Department of the Treasury. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. The FARMForeign Adversary Risk Managementact, introduced in the House of Representatives and the Senate on January 25, would trigger a Department of Agriculture and Government Accountability Office investigation into foreign influence on Americas agriculture industry. Nonagricultural land (such as homesteads and roads) accounted for 2%. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. U.S. Debt to China: How Much Is It, and Why? 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. 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. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. In 2019, it grew at 6.1%, an even more sustainable rate. If the Chinese suddenly decided to call in all of the federal government's obligations (which isn't possible, given the maturities of debt securities), others would likely step in to service the market. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. Please do not hesitate to contact me. U.S. Department of the Treasury. Definition and Impact. CSIS does not take specific policy positions. What Would Happen if China Were to Call In Its Debt? Appliances (technology), IBMP.C. "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. That made the yuan more attractive to forex traders in global markets. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Every year since 2010, China has held more than $1 trillion in U.S. debt. 4356 (117)) that would block any new agricultural purchases by companies that are wholly or partly controlled by the Chinese government and bar Chinese-owned farms from tapping federal support programs. To use individual functions (e.g., mark statistics as favourites, set China has steadily accumulated U.S. Treasury securities over the last few decades. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. The Chinese Investor owns about 14% of Snapchat's shares. 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. Secondly, China needs American markets to buy their exported goods. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. See Media Page for more interview, contact, and citation details. The debate over farm ownership comes amid broader efforts by Congress and the Biden administration to curb the nations economic reliance on China, especially in key industries like food, semiconductors and minerals deemed crucial to the supply chain. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. [Online]. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. This includes the Federal Reserve, which already owns six times as much debt as China. 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. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. 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. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. China does not publish the figures on its international lending. "GDP Growth (Annual %) - China. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. So, Lowes operates independently of Walmart. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. 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. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. 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. . The remaining 38 percent is held by entities from almost a hundred other countries. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. In 2011, the total U.S. debt stood at $14.3 trillion. 41 on The Land Reports 2022 list of Americans who own the most land. China does not publish the. You've successfully subscribed to this newsletter! Representative Grace Meng expressed concern that the amendment could fuel already rising anti-Asian hate, and the USDA and advocacy groups have pointed out that the USDA does not have the authority to intervene in private land deals. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. U.S.-based companies also own over nine million acres in other countries. Times Square billboard endeavors to warn of creeping Chinese influence. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. That makes Chinese exports cheaper than American-made goods, increasing sales. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. This material may not be published, broadcast, rewritten, 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. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. 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. This material may not be published, broadcast, rewritten, or redistributed. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. "Bretton Woods-GATT, 19411947.". 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 World Bank. companies.". These are especially vital not only for high-technology products such as smartphones and electric vehicles but for U.S. frontline weapons including the F-35 fighter, which requires 920 pounds of rare earth minerals. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. 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). This also reduces the purchasing power of Chinese earners. Contractionary Monetary Policy. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. 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 coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. ", 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 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. As economists point out, other creditors are likely to get in line to buy up Chinas share of the debt, including the Federal Reserve, already the owner of twice as much of the U.S. debt than China has ever owned. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. With an aging U.S. farmer population and not enough new farmers able to enter the industry, more land will inevitably be converted to other uses or sold to foreign and domestic investors unless policies are put in place to support the next generation of farmers. These foreign interests are pretty smart. 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. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. "How Much U.S. Debt Does China Really Own?" Even so, large land purchases present various localized concerns in the places where they occur. U.S. consumers benefit from low consumer prices. World Gold Council. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. 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's economy would suffer along with everyone else's. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Center for Strategic and International Studies 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. As a Premium user you get access to the detailed source references and background information about this statistic. No, China does not own Walmart. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. 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. 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. Other foreign holders included oil-exporting countries and Caribbean banking centers. 2 Which Country Owes the Most Money to China? USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. Interest on the National Debt and How It Affects You, US Debt by President: By Dollar and Percentage, US Budget Deficit by Year Compared to GDP, the National Debt, and Events, Chinas Economic Slowdown and How It Affects You, China's Economy and Its Effect on the U.S. Economy, China's Currency, the Yuan, and How It Affects You, How the Yuan Could Become a Global Currency, Debt Ceiling Dictionary: Your Guide to the Jargon, Major Foreign Holders of Treasury Securities, Report on Foreign Portfolio Holdings of U.S. Securities, Major Foreign Holders of Treasury Securities [2000-2020], Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States. China is taking steps to make its currency, the yuan, transition to a global currency. 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. All Rights Reserved. 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. Each bill, bond, and note represents ownership in U.S. debt. Is it better to pay off credit card or pay down? To do that, China had to loosen its peg to the dollar. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. 5. This acquisition put two Chinese directors on Hilton's Board of 10. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. The first and most important is that China wants its currency, the yuan, pegged to the dollar. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. The Communist Party has actively supported investments in foreign agriculture as part of its One Belt One Road economic development plans, aiming to control a greater piece of Chinas food supply chain. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. For long-term U.S. food security, perhaps the larger concern is why up-and-coming U.S. farmers are unable to buy the land they need. It amounted to about 192,000 of 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 control of. What is the best way to liquidate stocks? Here's a quick and fascinating breakdown by total. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. United States Treasury Fiscal Data. At some price point, U.S. consumers would buy American products instead. But the company backed out of its contract with USDA after an outcry from lawmakers led by Sen. Chuck Grassley (R-Iowa). statistic alerts) please log in with your personal account. 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. Gates is No. That would hurt China's competitiveness by raising the yuans value relative to the dollar. Statista. "China's Currency Policy," Page 1. 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. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. China's low-cost competitive strategy seems to be working. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. "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. ThoughtCo. With the U.S. dollar considered one of the safest and most stable currencies in the world, dollar-pegging helps the Chinese government maintain the stability and value of the yuan. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Its also a small percentage of the nearly 900 million acres of total American farmland. 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. "Federal Debt Held by Federal Reserve Banks. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. 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. 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. 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. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. (2021, September 2). by Jamie Lutz The United States owes China approximately $980.8 billion as of May 2022. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. 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. 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. The offers that appear in this table are from partnerships from which Investopedia receives compensation. 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. 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. In 2019, 49 percent of reported foreign-held acreage in the United States was forest land, while 25 percent was crop land, 24 percent was for pasture and other agricultural uses, and 2 percent was for non-agricultural uses (such as homesteads and roads). Second, the Chinese rely on American markets to buy Chinese-produced goods. Amazon founder Jeff Bezos comes in at No. Alibaba handles more business than any other e-commerce company. That changed with the USMCA. On the other hand, if China were to call in its debt, the demand for the dollar could plummet.

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