In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. Disney is in no way owned by Chinese interests in terms of shareholders. Gates is No. Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. Mutual Fund and ETF data provided by Refinitiv Lipper. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. US National Debt Clock: How Its Warning Affects You. Newt says China will 'dominate world' if tech theft isn't stopped, 'it's a matter of life and death', share data with Chinese communist spy agencies. 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. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. Federal Reserve Bank of St. Louis. 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. Are you interested in testing our business solutions? We also reference original research from other reputable publishers where appropriate. WH Group is a publicly-traded company with shareholders around the world. That would hurt China's competitiveness by raising the yuans value relative to the dollar. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. Its research is nonpartisan and nonproprietary. Congressional Research Service. The value will change whenever China trades Treasury securities or when the prices of those bonds change. Breaking Down the US Debt and Who Owns It. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. 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. Number of U.S. properties bought by Chinese 2022 | Statista See Media Page for more interview, contact, and citation details. Christmas in Mainland China is not a public holiday and is not related to religion at all. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. Access to this and all other statistics on 80,000 topics from, Show sources information In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. 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. 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. The US National Debt and How It Affects You. Center for Strategic and International Studies The call for tighter limits on who owns Americas farms has come from a wide range of political leaders, from former Vice President Mike Pence to Sen. Elizabeth Warren (D-Mass. It's more of a novelty day like Valentine's Day, rather than a religious celebration. Second, the Chinese rely on American markets to buy Chinese-produced goods. How many times does Coca Cola pay dividends? Despite holding little U.S. land, China remains focus of foreign While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. 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. How Hollywood Sold Out to China - The Atlantic Q4: What federal solutions are being discussed? companies.". The reality is very different than the rhetoric. ", 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. 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. Walmart owns no shares. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. "We The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. "In 2017, the United States produced zero rare earth minerals. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. 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. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. Treasury securities are freely traded around the world. 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. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. 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. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. 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. The Chinese Investor owns about 14% of Snapchat's shares. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . "GDP Growth (Annual %) - China. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. 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. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. | Photo by Nathan Howard/Getty Images. All Rights Reserved. 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. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. and Caitlin Welsh. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. The Biggest American Companies Now Owned by the Chinese - Yahoo! 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. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Market data provided by Factset. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. How Much Money Does the U.S. 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. Manuel Balce Ceneta/AP Photo. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. Is it better to pay off credit card or pay down? U.S. Debt to China: How Much Is It, and Why? 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. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. Here's a quick and fascinating breakdown by total. "Bretton Woods-GATT, 19411947.". Research Associate, Global Food Security Program. Furthermore, policymakers have signaled no efforts to improve state- or national-level information on foreign purchases of U.S. farmland, leaving the true picture obscured. 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. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. 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. Office of the Historian. [Online]. Agricultural Land: Facts, Figures, and an Assessment of Real Threats, Brzezinski Chair in Global Security and Geostrategy, Diversity and Leadership in International Affairs Project, Energy Security and Climate Change Program, Media Relations Manager, External Relations. 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. All rights reserved. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. These foreign interests are pretty smart. Land grabbingwhen a government, company, or other entity purchases large swathes of land in another countrycan affect local land rights and agricultural production, sometimes putting local food security at risk. Q2: What threats do foreign acquisitions of U.S. farmland pose? 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. 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. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . Quotes displayed in real-time or delayed by at least 15 minutes. | Much of the rest of the debt is owned by individual investors, corporations, and other public entities. This material may not be published, broadcast, rewritten, Are chinese companies state owned? 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. Additionally, China is seeking to build 5G networks in the United States and other Western countries, which could potentially feed personal information and sensitive data to the Chinese Communist Party. 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. 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. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. US media outlets received millions of dollars from China to sell its Washington, DC 20036. And Human Rights Watch has written that China is an'existential threat' to human rights." Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. How Much U.S. Debt Does China Own? - The Balance On the other hand, if China were to call in its debt, the demand for the dollar could plummet. Nonagricultural land (such as homesteads and roads) accounted for 2%. AMC. 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. How Much U.S. Farmland Does China Really Own? More Than Bill GatesAnd Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. US Navy laments China's shipbuilding supremacy February 27, 2023; US dangles F-35 to lure India away from Russia February 27, 2023; Ukraine marks the future of remote-control war February 23, 2023; China's 'phantom space strike' made to spoof US defenses February 23, 2023; US secretly amassing killer drone swarms to repel China February . Walmart is founded and owned by the Walton family. 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 . Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. As its exports decline, China is less able to invest in U.S. Treasurys. Countries with lower currency values export more, since their products cost less when sold in foreign countries. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. As a Premium user you get access to the detailed source references and background information about this statistic. U.S. Department of the Treasury. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. How can I increase my credit score by 25 points? Crops beings harvested on an Iowa farm in 2018, Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases, North Dakota Turns Against Chinese Corn Mill Project. 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. This dollar collapse could disrupt international markets even more than the 2008 financial crisis. At some price point, U.S. consumers would buy American products instead. 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. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. 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.. A repurchase agreement is a form of short-term borrowing for dealers in government securities. This material may not be published, broadcast, rewritten, or redistributed. 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. 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. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. I'm a reporter for Forbes' explainers and trends team. What does China own in the U.S.? | CNBC Explains - YouTube A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. Q3: What regulations are currently in place? In return, American consumers get cheap Chinese products and incoming investment capital. Secondly, China needs American markets to buy their exported goods. 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. China does not publish the. 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. Discover the current debt ceiling and its economic impact. Its economy grew more than 10% for the three decades before the 2008 recession. "China's Gold Market: Progress and Prospects," Page 2. Given the state of the AFIDA data, it seems it is doing neither. What is the best way to liquidate stocks? How much of the U.S. land does China own? 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.. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. 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. Owe China? The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. The economy of China is driven by manufacturing and exporting. Jamie Lutzisaresearchassociatewiththe Global Food Security Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Caitlin Welsh is the director of the CSIS Global Food Security Program. Chinas demand for Treasurys helps keep U.S. interest rates low. Investopedia does not include all offers available in the marketplace. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. China's economy would suffer along with everyone else's. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. ", Harvard Business Review. Even so, large land purchases present various localized concerns in the places where they occur. 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. Biden thanks King of Jordan for "historic meeting" in Aqaba and Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. CSIS does not take specific policy positions. So, Lowes operates independently of Walmart. If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. You can learn more about the standards we follow in producing accurate, unbiased content in our. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. ), after gaining momentum seeded in farm states. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. 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. What Would Happen if China Were to Call In Its Debt? The offers that appear in this table are from partnerships from which Investopedia receives compensation. United States Treasury Fiscal Data. Quotes displayed in real-time or delayed by at least 15 minutes. Billions of dollars flow into the U.S. from China every year. 1616 Rhode Island Avenue, NW The Netherlands is the second largest foreign owner with 4.6 million acres. 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. 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. The top two foreign holders of U.S. debt are Japan and China. 18, far behind No. It could be bigger," he surmised. Can you rollover Roth 401k to Roth IRA while still employed? 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. ", National Association of Realtors, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 Statista, https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/ (last visited March 04, 2023), Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph], National Association of Realtors, July 18, 2022. 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. But the contrition paid off: F9 grossed $136 million in China its first weekend, nearly double its . Learn more about how Statista can support your business. 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 . China's low-cost competitive strategy seems to be working. How Did the U.S. National Debt Get So Big? Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). National Association of Realtors. 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's state-directed industrial policy has outmaneuvered America's laissez-faire approach to securing access around the world to a metal that's taking on growing economic and strategic . Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. The other 189,000 acres were worth $235 million when purchased and are owned by 62 U.S. corporations with Chinese shareholders. The Pentagon released a list of 20 companies that it says are owned or controlled by Communist China's military and operate in the US - including tech giant Huawei, according to a report. 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. Every year since 2010, China has held more than $1 trillion in U.S. debt. Read our. Countries Who Own The Most Acres U.S. 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. (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. 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. Q1: Where and why are foreign entities purchasing farmland in the United States? WH Groups shareholders include many large U.S.-based financial institutions.". 41 on The Land Reports 2022 list of Americans who own the most land. How Much U.S. Debt Does China Own? - Investopedia