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. China's low-cost competitive strategy seems to be working. That's a decline of. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? It has opened yuan trading centers in London and Frankfurt. Anyone can buy U.S. debt. 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. As it is not known exactly how much US land is owned by China. 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. "Major Foreign Holders of Treasury Securities.". The other countries that hold the most U.S. debt include the U.K., with $634 billion owed; Switzerland, holding $294.1 billion in debt securities; and the Cayman Islands, slightly behind Switzerland with $293.2 billion of the United States' debt. What Would Happen if China Were to Call In Its Debt? 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. . CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. 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. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. 3 1. Research Associate, Global Food Security Program. The post, which has been shared over 256,000 times as of April 14, is headlined with "read this before buying meat." "The hogs will still be raised here, but slaughtered and packaged for . 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. This also reduces the purchasing power of Chinese earners. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Its economy grew more than 10% for the three decades before the 2008 recession. And its findings may be surprising to some. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. 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. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Longley, Robert. Scrutiny of foreign-owned agricultural operations receiving taxpayer subsidies has also been rising in recent years after meatpacking conglomerates like the U.S. subsidiary of Brazilian-owned JBS received millions of dollars under the Trump administrations trade bailout starting in 2018. 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. Former Vice President Mike Pence speaks during an event. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. 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. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. 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. 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. | Photo by Nathan Howard/Getty Images. The economy of China is driven by manufacturing and exporting. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Securities. 1616 Rhode Island Avenue, NW Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. 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. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. Manuel Balce Ceneta/AP Photo. This has been common practice for many countries ever since the Bretton Woods Conference in 1944. 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. Legal Statement. Center for Strategic and International Studies 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. Q1: Where and why are foreign entities purchasing farmland in the United States? She is a library professional, transcriptionist, editor, and fact-checker. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. Powered and implemented by FactSet Digital Solutions. 2023 Center for Strategic & International Studies. How Much U.S. Debt Does China Really Own? 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. Can you rollover Roth 401k to Roth IRA while still employed? In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. Use Ask Statista Research Service. 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. The top two foreign holders of U.S. debt are Japan and China. In Texas, a Chinese based energy company purchased more than 130,000 acres of land near Laughlin Air Force Base and is now attempting to build a wind farm to access the U.S. power grid. 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. Register in seconds and access exclusive features. 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 . See Media Page for more interview, contact, and citation details. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. While some states have strict laws in place, others are more open to foreign investments. The Chinese spy balloon shot down February 4 increased worries that foreign governments could use U.S. land for espionage efforts, reports the Journal. The resulting loss of export business would lead to a major unemployment crisis in China. July 18, 2022. Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. 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.. "In 2017, the United States produced zero rare earth minerals. Haier bought GE for $5.4 billion, a recording breaking sum at that time. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. 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). Discover the current debt ceiling and its economic impact. What's the Difference? Historically, between 20,000 and 40,000 residential properties were bought by. Q4: What federal solutions are being discussed? A1: USDA records provide the best source of information on foreign-held agricultural land, although they are still incomplete and contain many errors (as explained in A3 below). Currently, you are using a shared account. 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. Congressional Research Service. Texas has the largest amount of foreign-held agricultural land, at 4.4 million acres, followed by Maine and Alabama, according to USDA. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. "Bretton Woods-GATT, 19411947.". Japan consistently tops the list, owning about $1.3 trillion as of October 2021. (ChinaOwnsUs campaign). Owning U.S. Treasury notes helps China's economy grow. "Federal Debt Held by Federal Reserve Banks. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. Q3: What regulations are currently in place? Chinas demand for Treasurys helps keep U.S. interest rates low. ", Congress.gov. 2 Which Country Owes the Most Money to China? 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 . Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Owe China? ", Harvard Business Review. It allows the U.S. Treasury to borrow more at low rates. As soon as this statistic is updated, you will immediately be notified via e-mail. China also became the world's biggest exporter in 2009. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. 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. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. All rights reserved. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Other foreign holders included oil-exporting countries and Caribbean banking centers. No, China does not own Walmart. U.S . As a Premium user you get access to the detailed source references and background information about this statistic. China Daily, which is controlled by the Chinese Communist Party, has paid more than $4.6 million to The Washington Post and . Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. 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. 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. How many times does Coca Cola pay dividends? 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. China has become one of the largest economies in the world. China drew some headlines in 2013 and 2014 for buying up a lot of gold to store in its bank vaults, but the real safety net for the yuan is the worldwide belief in the dollar. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. Federal Reserve Bank of St. Louis. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. So, Lowes operates independently of Walmart. The ideal entry-level account for individual users. You can only download this statistic as a Premium user. Access to this and all other statistics on 80,000 topics from, Show sources information by Jamie Lutz Forbes. 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. China does not publish the. 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. 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. Of that, 195,000 acres, worth almost $2 billion when purchased, are. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. Longley, Robert. Mexico has gone from 38% to 42%. This material may not be published, broadcast, rewritten, or redistributed. Greed Is Good or Is It? Times Square billboard endeavors to warn of creeping Chinese influence. China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. and Caitlin Welsh. In 2017, the United States imported $4.6 billion in agricultural goods from China, which is also responsible for much of the global supply of soy and pea proteins that are found in nutritional supplements and synthetic meats. Its three main sites Taobao, Tmall and Alibaba.com have hundreds of millions of users, and host millions of merchants and businesses. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. How much of Chinese industry is state-owned? The Chinese government's theft of intellectual property has been an open secret for decades. A4: Since the 2013 purchase of Smithfield Foods, multiple bills have been proposed to provide more oversight of foreign investments in U.S. agricultural companies (including in 2017 and 2020), but until recently they each died in committee.
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