Market data provided by Factset. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. US National Debt Clock: How Its Warning Affects You. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. It receives these dollars from Chinese companies that receive them as payments for their exports. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. More recently, U.S. authorities have discovered China is funding American university researchers, who don't always disclose those contributions. This is partly because Japan is seen as a much friendlier nation and because Japans economy has been growing more slowly than Chinas over the last several years. This drives China to accumulate U.S. dollars as foreign exchange (forex) reserves. Profit from the additional features of your individual account. 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 products are still made in the USA, but the decisions are made in China. 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. 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. 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. Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Manuel Balce Ceneta/AP Photo. Amanda Jackson has expertise in personal finance, investing, and social services. 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. 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. ", U.S. Department of the Treasury. Forbes. The buying gorge went from April 2021 to March 2022 and . Powered and implemented by FactSet Digital Solutions. Q2: What threats do foreign acquisitions of U.S. farmland pose? 04 Mar 2023 03:14:21 Contractionary Monetary Policy. TreasuryDirect. Missouri had formerly banned all foreign ownership of agricultural land in the state, but one week before Shuanghui took over Smithfield, that rule changed to allow foreign entities to own up to 1 percent of the states farmland. Quotes displayed in real-time or delayed by at least 15 minutes. I'm a reporter for Forbes' explainers and trends team. So, Lowes operates independently of Walmart. Other foreign holders included oil-exporting countries and Caribbean banking centers. Agricultural Land. [Online]. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. To use individual functions (e.g., mark statistics as favourites, set China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. 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. 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. 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. 41 on The Land Reports 2022 list of Americans who own the most land. Even at a slow pace, dollar demand would drop. How much of the USA is owned by China? ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. United States Treasury Fiscal Data. 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 FARMForeign Adversary Risk Managementact, introduced in the House of Representatives and the Senate on January 25, would trigger a Department of Agriculture and Government Accountability Office investigation into foreign influence on Americas agriculture industry. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. As a major function of its monetary policy, China's central bank, the Peoples Bank of China (PBOC), actively works to prevent this imbalance between the U.S. dollar and renminbi in local markets. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Q4: What federal solutions are being discussed? 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. Longley, Robert. The government itself actually holds just under one-third, about $5 trillion, of the $19.8 trillion government debt in the form of trust funds dedicated to legislatively-mandated programs like Social Security, Medicare, and Medicaid and veterans benefits. In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. 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. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Additionally, Walmart has never owned Dollar Tree and has no plans to acquire the business. As a Premium user you get access to the detailed source references and background information about this statistic. ", TreasuryDirect. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. 6 Modern U.S. Presidents Who Raised the Debt Ceiling, Expansionary vs. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. Please create an employee account to be able to mark statistics as favorites. 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. "In 2017, the United States produced zero rare earth minerals. Is it better to pay off credit card or pay down? 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. 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. 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. At some price point, U.S. consumers would buy American products instead. Legal Statement. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. Anyone can buy U.S. debt. 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. 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). Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Breaking Down the US Debt and Who Owns It. This is just a small part of the 30 . You can learn more about the standards we follow in producing accurate, unbiased content in our. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. All rights reserved. China also became the world's biggest exporter in 2009. You need at least a Starter Account to use this feature. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. 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. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. Its research is nonpartisan and nonproprietary. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. 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. This acquisition put two Chinese directors on Hilton's Board of 10. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. Mutual Fund and ETF data provided by Refinitiv Lipper. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington.

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