At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. Q1: Where and why are foreign entities purchasing farmland in the United States? According to the U.S. Census Bureau, the U.S. has been suffering from a significant trade deficit with China since 1985, meaning that the U.S. buys more goods and services from China than China buys from the U.S. Chinese exporters receive U.S. dollars for their goods sold to the U.S. "Debt Position and Activity Report, June 2017," Page 1. "Debt Position and Activity Report, June 2022," Page 1. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. 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. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. 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. Discover the current debt ceiling and its economic impact. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. 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.. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. 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. companies.". Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. The money flowing into agricultural real estate from other countries also makes it difficult for new farmers in the U.S. to afford land as outside buyers bid up prices. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. China also became the world's biggest exporter in 2009. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). What is the highest credit limit for Chase Sapphire? Her modest, two-story white farmhouse has . Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. Former Vice President Mike Pence speaks during an event. First, because U.S. securities like Treasury bills come with varying maturity dates, it would be impossible for the Chinese to call them all in at the same time. Q4: What federal solutions are being discussed? As a Premium user you get access to the detailed source references and background information about this statistic. Walmart does not own Dollar Tree as of 2022. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. How Did the U.S. National Debt Get So Big? Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. The products are still made in the USA, but the decisions are made in China. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. 5. Legal Statement. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. Given the state of the AFIDA data, it seems it is doing neither. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The last significant increase in acres occurred between 2012 and 2013 . As a Premium user you get access to background information and details about the release of this statistic. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. 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. Market data provided by Factset. 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. Profit from the additional features of your individual account. Get full access to all features within our Business Solutions. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. As of the end of November, China owned US$1.063 trillion of the total outstanding US government debt issued by the US Department of the Treasury. The Chinese government's theft of intellectual property has been an open secret for decades. "How Much U.S. Debt Does China Really Own?" ", The World Bank. This Treasury-led change makes it difficult to make long-term comparisons. Longley, Robert. TreasuryDirect. Powered and implemented by FactSet Digital Solutions. Currently, you are using a shared account. "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 reality is very different than the rhetoric. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. "How Much U.S. Debt Does China Really Own?" US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. Q5: What is the real threat to U.S. food security? 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. These are accounts dedicated to Social Security, Medicare, and other entitlements. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. 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. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. 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. ThoughtCo. 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 . The National Young Farmers Coalition (NYFC) anticipates that two-thirds of farmland will change hands over the next decade as farmers retire, meaning that more land could become available for foreign purchase. These include white papers, government data, original reporting, and interviews with industry experts. 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. Research Associate, Global Food Security Program. Amanda Jackson has expertise in personal finance, investing, and social services. Longley, Robert. 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. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. 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. Walmart owns no shares. Though the magazine named him the largest private farmland owner in January 2021, the Microsoft founder came under fire in early 2022 when he was briefly barred from purchasing 2,100 acres of North Dakota farmland. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. The manufacturing of smartphones and other household items is heavily reliant on China, which controls most of the rare earth minerals that make those items work. We also reference original research from other reputable publishers where appropriate. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. 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. 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. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. U.S . This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. 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. As of 2019, a total of 191,000 acres of American land were owned by China. You can learn more about the standards we follow in producing accurate, unbiased content in our. Walmart is founded and owned by the Walton family. 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. As a result, the public does not have a complete picture of which foreign entities own how much U.S. farmland or what the land is being used for. You need at least a Starter Account to use this feature. How Much Money Does the U.S. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. It could be bigger," he surmised. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. 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. 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. When the pandemic hit, Smithfield increased pork exports to China even as the United States experienced widespread meat shortages due to supply chain disruptions and Smithfield closed some of its plants due to poor working conditions. 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. ", 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. 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. Washington, DC 20036. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. Mutual Fund and ETF data provided by Refinitiv Lipper. Second, the Chinese rely on American markets to buy Chinese-produced goods. 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. 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. Forbes. 04 Mar 2023 03:14:21 According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. If you are an admin, please authenticate by logging in again. 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. The top two foreign holders of U.S. debt are Japan and China. "We House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. 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. 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). or redistributed. China has steadily accumulated U.S. Treasury securities over the last few decades. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. 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. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. statistic alerts) please log in with your personal account. The remaining 38 percent is held by entities from almost a hundred other 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. Even so, large land purchases present various localized concerns in the places where they occur. "China's Currency Policy," Page 1. And Human Rights Watch has written that China is an'existential threat' to human rights." US National Debt Clock: How Its Warning Affects You. WH Groups shareholders include many large U.S.-based financial institutions.". These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. That figure was$30.5trillion as of June 30, 2022. Smithfield was also in line to receive money from the program, which was created to help U.S. farmers strung by trade retaliation from China and other competitors. The first and most important is that China wants its currency, the yuan, pegged to the dollar. China holds more than $1 trillion of the U.S. national debt. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . Advocacy groups like the National Family Farm Coalition argue that the larger threat to national security is corporate capture of U.S. land resources, whether those corporations are U.S.- or foreign-owned. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. 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. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. But, exactly how much does the nation own? 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). And its findings may be surprising to some. 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. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. division (technology), Legendary Entertainment Group (entertainment), Motorola Mobility (technology), Nexteer Automotive (automotive), Riot Games (entertainment), Smithfield Foods (food), Teledyne Continental Motors and Mattituck Services (aerospace), Terex Corp. (machinery), Triple H Coal (mining), Zonare Medical Systems (health care). The buying gorge went from April 2021 to March 2022 and . The resulting loss of export business would lead to a major unemployment crisis in China. That makes Chinese exports cheaper than American-made goods, increasing sales. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. 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. Quotes displayed in real-time or delayed by at least 15 minutes. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. The United States owes China approximately $980.8 billion as of May 2022. 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. 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. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. | Citing staff shortages, the Department of Agriculture didnt penalize foreign parties for violating reporting rules from 2015 to 2018, prompting 28 lawmakers to criticize the departments complete lack of accountability and oversight Monday in a letter obtained by the Wall Street Journal. That would hurt China's competitiveness by raising the yuans value relative to the dollar. 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). 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. 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. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. | (Other Hollywood companies are partly or wholly owned by Chinese interests We know that education is one of the most common reasons that Chinese families purchase real estate in the US, he said. 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. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. What's the Difference? Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. Japan consistently tops the list, owning about $1.3 trillion as of October 2021. 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.
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