It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. Number of U.S. properties bought by Chinese 2022 | Statista TreasuryDirect. To do that, China had to loosen its peg to the dollar. 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. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. This includes the Federal Reserve, which already owns six times as much debt as China. 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. China's economic growth has slowed over the years. How much US debt does China own and why is it important? Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of 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. Investopedia requires writers to use primary sources to support their work. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. What US companies are now owned by China? 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. . Former Vice President Mike Pence speaks during an event. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. The value will change whenever China trades Treasury securities or when the prices of those bonds change. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. Learn more about how Statista can support your business. 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. You've successfully subscribed to this newsletter! For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Amazon founder Jeff Bezos comes in at No. How Much U.S. Debt Does China Really Own? "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 data is based on a 1978 law directing foreign nationals to report their U.S. agricultural holdings to USDA a requirement that can be difficult for the department to enforce. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. 2023 Center for Strategic & International Studies. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. 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. Currently, you are using a shared account. Two bills introduced in the House of Representatives and the Senate argue foreign influence on American agricultural land could affect Americas economy, food supply, and national security. The Chinese Investor owns about 14% of Snapchat's shares. 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$. As of the start of 2020, Chinese investors owned about 192,000 acres of U.S. agricultural land valued at about $1.9 billion, according to Politico. Treasury securities are freely traded around the world. Market data provided by Factset. 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. Chart. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. Alibaba handles more business than any other e-commerce company. 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. CSIS does not take specific policy positions. 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. 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. ", Congress.gov. However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Walmart does not own Dollar Tree as of 2022. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. 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. Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. Subsequently, China and other international players would be obligated to accede to an audit that can be reviewed by the nonprofit Public Company Accounting Oversight Board, which oversees audits of all U.S. companies that endeavor to raise money in public markets. How much do banks charge to manage a trust? March 18, 2016, 2:10 PM. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. 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. 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. 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. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. 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. 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.. As a presidential candidate in 2019, Warren said she would support a national version of Iowas law along with safeguards against foreign investors using fake American buyers to circumvent the rules. "Major Foreign Holders of Treasury Securities [2000-2020]. This helps China hold down the cost of its exported goods, which tends to make China, like any nation, a stronger performer in international trade. Amanda Jackson has expertise in personal finance, investing, and social services. US media outlets received millions of dollars from China to sell its (Smithfield said in a later statement pertaining to their ownership structure that they are "a U.S. company that provides more than 40,000 American jobs and partners with thousands of American farmers. If you are an admin, please authenticate by logging in again. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. Gates is No. The United States owes China approximately $980.8 billion as of May 2022. Why China Buys U.S. Debt With Treasury Bonds - Investopedia The AFIDA requires foreign entities to report transactions of farmland to the USDA and imposes steep penalties for failing to report (up to 25 percent of the fair market value of the land), although they are rarely enforcedthe last fine imposed under the act was in 2014. Register in seconds and access exclusive features. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. To use individual functions (e.g., mark statistics as favourites, set 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 . According to the Federal Reserve and U.S. Department of the Treasury, foreign countries held a total of 7.03 trillion U.S. dollars in U.S. Treasury securities as of March 2021. 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. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. China holds more than $1 trillion of the U.S. national debt. Investopedia does not include all offers available in the marketplace. This compensation may impact how and where listings appear. 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. "How Much Money Does the World Owe China? Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. How Much U.S. Debt Does China Own? - The Balance Who owns America? Hint: It's not China - CNN In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. The deal meant that WH Group now owns the largest pork producer in the United States as well as over 146,000 acres of Missouri farmland. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. 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's Large Position in U.S. Treasuries. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. 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. WH Group is a publicly-traded company with shareholders around the world. by Jamie Lutz Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. (ChinaOwnsUs campaign). China holds more than $1 trillion of the U.S. national debt. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. "China's Gold Market: Progress and Prospects," Page 2. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. China is taking steps to make its currency, the yuan, transition to a global currency. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. 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. 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. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. Research Associate, Global Food Security Program. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. Can you rollover Roth 401k to Roth IRA while still employed? 2 Which Country Owes the Most Money to China? China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. [Online]. "Debt to the Penny. 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. As it is not known exactly how much US land is owned by China. I'm a reporter for Forbes' explainers and trends team. "We (2021, September 2). SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. Breaking Down the US Debt and Who Owns It. 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. Japan held 1.24 trillion U.S. dollars. 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. China's low-cost competitive strategy seems to be working. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." This statistic is not included in your account. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. China "Owns" Us: How the Chinese Are Buying Up America Please create an employee account to be able to mark statistics as favorites. Its a massive undertaking to verify who really owns [the land], Maxwell said. China does not publish the figures on its international lending. 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. That makes Chinese exports cheaper than American-made goods, increasing sales. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. Get full access to all features within our Business Solutions. 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. The products are still made in the USA, but the decisions are made in China. 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. It could be bigger," he surmised. She is a library professional, transcriptionist, editor, and fact-checker. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. "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. ), after gaining momentum seeded in farm states. World Gold Council. Is it better to pay off credit card or pay down? Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. Q5: What is the real threat to U.S. food security? Nonagricultural land (such as homesteads and roads) accounted for 2%. In, National Association of Realtors. Contractionary Monetary Policy. "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. The resulting loss of export business would lead to a major unemployment crisis in China. 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. | Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. National Debt or Federal Deficit? Includes buyers from the People's Republic of China, Hong Kong and Taiwan. 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. That's a decline of. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. That would hurt China's competitiveness by raising the yuans value relative to the dollar. Powered and implemented by FactSet Digital Solutions. TreasuryDirect. So, in part, Chinese demand for American property is a sign of their desire to give their children the best opportunities to have a successful future.. 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. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. Read our. It's more of a novelty day like Valentine's Day, rather than a religious celebration. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek 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. 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. This series of events prompted Congress to look at how to prevent Chinese ownership in U.S. agriculture, even though other foreign entities, like Brazilian-owned JBS, control similarly large portions of U.S. food supply chains. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. 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. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. White House National Security Advisor Jake Sullivan said in a statement that the United States welcomes the commitments of Israel and the Palestinian Authority to reduce tensions and prevent further violence. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. American Companies You Didn't Know Were Owned By Chinese Investors Mexico has gone from 38% to 42%. 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. You need a Statista Account for unlimited access. Greed Is Good or Is It? 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. Many Americans find the brand appealing because it has a "Made in America" stamp on its products, however, the company has been owned by Chinese company Haier since 2016. 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. China has become one of the largest economies in the world. Q3: What regulations are currently in place? A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. Federal Reserve Bank of St. Louis. How America got outmaneuvered in a critical mining race