It is responsible for lower interest rates and cheap consumer goods. 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. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. Market data provided by Factset. ", The World Bank. 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. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). You can learn more about the standards we follow in producing accurate, unbiased content in our. As its exports decline, China is less able to invest in U.S. Treasurys. 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. Definition and Impact. 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. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. 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. "GDP Growth (Annual %) - China. Market data provided by Factset. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. ", The World Bank. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . 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. "Report on Foreign Portfolio Holdings of U.S. Agricultural Land. We also reference original research from other reputable publishers where appropriate. 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The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. (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. That makes Chinese exports cheaper than American-made goods, increasing sales. The Chinese government's theft of intellectual property has been an open secret for decades. Mexico has gone from 38% to 42%. 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. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. US National Debt Clock: How Its Warning Affects You. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. 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. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. These foreign interests are pretty smart. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. 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. Walmart is founded and owned by the Walton family. China has steadily accumulated U.S. Treasury securities over the last few decades. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. Congressional Research Service. What US companies are now owned by China? 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. China needs this growth to raise its low standard of living. 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 Premium user you get access to background information and details about the release of this statistic. What Would Happen if China Were to Call In Its Debt? 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. How Did the U.S. National Debt Get So Big? 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. You need at least a Starter Account to use this feature. Hilton Hotels Since 1919, Hilton has become a household name throughout the U.S. and other countries. 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. Japan held 1.24 trillion U.S. dollars. 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. "We 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. A paid subscription is required for full access. China's position as the largest foreign holder of U.S. debt gives it some political leverage. These are accounts dedicated to Social Security, Medicare, and other entitlements. Conspiracy theorists suggested Gates was buying up millions of acres of U.S. farmland for nefarious reasons, according to the fact-checking service Snopes, with some claiming that Gates owned 80% of all U.S. farmland. Legal Statement. 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. 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. U.S . Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. 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. statistic alerts) please log in with your personal account. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. 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. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. How Much Money Does the U.S. Historically, between 20,000 and 40,000 residential properties were bought by. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. Anyone can buy U.S. debt. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. Gates is No. United States Treasury Fiscal Data. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. Contractionary Monetary Policy. Stephen Gandel. ", 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. 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. That would hurt China's competitiveness by raising the yuans value relative to the dollar. ", U.S. Department of the Treasury. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The largest holder of U.S. debt is the United States government. As soon as this statistic is updated, you will immediately be notified via e-mail. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. In 2019, it grew at 6.1%, an even more sustainable rate. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. 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. According to sources, Time Magazine received $700,000, the Financial Times $371,577, Foreign Policy Magazine $291,000, the Los Angeles Times $272,000, and other notable media outlets received more than $1 million. Gates continues to deny any plot, telling Reddit users in January that he owns less than one four-thousandths of U.S. farmland and invests in farms to improve their production and create jobs. 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. No, China does not own Walmart. A2: On a large scale, these acquisitions do not represent a substantial enough portion of food production in the United States to threaten national food security. 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. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. (July 18, 2022). 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. And while the U.S. grants China permission to buy its companies, China does not allow U.S. companies to operate the same way on their soil. I'm a reporter for Forbes' explainers and trends team. 2023 FOX News Network, LLC. Is it better to pay off credit card or pay down? David Schlessinger and I founded Five Below 16 years ago with a promise to build an amazing store for teens and pre-teens that offers trend-right, high-quality merchandise all at $5 or less, said Tom Vellios . The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. The remaining 38 percent is held by entities from almost a hundred other countries. The products are still made in the USA, but the decisions are made in China. How Much U.S. Debt Does China Really Own? Chart. 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. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. 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. "Major Foreign Holders of Treasury Securities. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. The Chinese Investor owns about 14% of Snapchat's shares. Greed Is Good or Is It? Currently, you are using a shared account. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . 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. Smithfield is vertically integrated and owns all aspects of its supply chain, meaning that WH Group now controls a significant portion of U.S. pork production and revenue in addition to farmland. U.S. Debt to China: How Much Is It, and Why? For its part, China owned 191,000 acres worth $1.9 billion as of 2019. 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. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. How much of the U.S. land does China own? ", 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. This acquisition put two Chinese directors on Hilton's Board of 10. "Bretton Woods-GATT, 19411947.". 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. More than 200 foreign firms mostly Chinese with a combined market capitalization of almost $2 trillion are said to not be meeting this standard; so their stocks are traded, but U.S. investors have limited insight into what is going on internally with the companies. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. 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. What's the Difference? We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. (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. In addition, many economists contend that the reported U.S. debt should include at least another $120 trillion in unfunded future liabilitiesmoney the government does not currently have but is legally obligated to pay people in the future. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. That made the yuan more attractive to forex traders in global markets. Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases (WSJ), North Dakota Turns Against Chinese Corn Mill Project (WSJ). Even at a slow pace, dollar demand would drop. Use Ask Statista Research Service. These include white papers, government data, original reporting, and interviews with industry experts.