Appliances (technology), IBMP.C. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. 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. Angela Huffman is a sixth-generation farmer in Wyandot County, which, along with Paulding County, has more than 41,000 acres of foreign-owned farmland. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. Congressional Research Service. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. 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). It has held up to $1.3 trillion of U.S. debt. The largest holder of U.S. debt is the United States government. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. From 2016, the estimates include only residential transactions. Congress can then increase the federal spending that spurs U.S. economic growth. The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. By mid-2017, the total amount of official debt owed by the federal, state, and local governments was more than $19.8 trillion. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. 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. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. "General Government Gross Debt.". 1 Quotes displayed in real-time or delayed by at least 15 minutes. "Major Foreign Holders of Treasury Securities.". China also became the world's biggest exporter in 2009. ", TreasuryDirect. 2023 Center for Strategic & International Studies. 41 on The Land Reports 2022 list of Americans who own the most land. 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. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. Legal Statement. 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. Given the state of the AFIDA data, it seems it is doing neither. How much of the U.S. land does China own? Is it better to pay off credit card or pay down? 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. What Is the Public Debt, and When Is It Too High? 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. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. "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. In 2011, the total U.S. debt stood at $14.3 trillion. In fact, research firm Gartner revealed last year that a third of supply chain leaders had plans to move at least some of their manufacturing out of China before 2023. 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. . Anyone can buy U.S. debt. It allows the U.S. Treasury to borrow more at low rates. That's when the U.S. Department of the Treasury changed how it measures the debt. Each bill, bond, and note represents ownership in U.S. debt. These include white papers, government data, original reporting, and interviews with industry experts. "China's Gold Market: Progress and Prospects," Page 2. It amounted to about 192,000 of the. Longley, Robert. 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). The Netherlands is the second largest foreign owner with 4.6 million acres. As a Premium user you get access to background information and details about the release of this statistic. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. This acquisition put two Chinese directors on Hilton's Board of 10. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. Haier bought GE for $5.4 billion, a recording breaking sum at that time. The offers that appear in this table are from partnerships from which Investopedia receives compensation. How much of the USA is owned by China? All rights reserved. 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. Please do not hesitate to contact me. U.S. consumers benefit from low consumer prices. 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. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. Subsequently, China and other international players would be obligated to accede to an audit that can be reviewed by the nonprofit Public Company Accounting Oversight Board, which oversees audits of all U.S. companies that endeavor to raise money in public markets. 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. 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. 24 with 420,000 acres, which forms the site of his suborbital spaceflight company, Blue Origin. While some states have strict laws in place, others are more open to foreign investments. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Billions of dollars flow into the U.S. from China every year. 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 . 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. China has steadily accumulated U.S. Treasury securities over the last few decades. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. The coronavirus pandemicmay have shed light on China'sinfluence in America over the supply chain,including life-saving medicines, technologyand equipment. "Major Foreign Holders of Treasury Securities [2000-2020]. Does paying off all debt increase credit score? (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. As its exports decline, China is less able to invest in U.S. Treasurys. China's Large Position in U.S. Treasuries. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". 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. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. statistic alerts) please log in with your personal account. 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 . Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. Countries with lower currency values export more, since their products cost less when sold in foreign countries. 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. According to the data, the value of foreign-owned American assets climbed to $32.5 trillion in the second quarter, while total foreign assets held by. The . You only have access to basic statistics. 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 top two foreign holders of U.S. debt are Japan and China. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. In a vicious cycle, they sell the U.S. dollars they receive through exports to get renminbi, which increases the supply of U.S. dollars and raises the demand for renminbi, to the point that the renminbi ranked as the eighth most traded currency in the world as of 2019. 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. 2 Which Country Owes the Most Money to China? The government now provides affordable housing by subsidizing commercial housing purchases or by offering low-rent public (social) housing to middle- and low-income families. The United States currently produces more than enough food per capita, even after adjusting for food waste. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. 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. You can only download this statistic as a Premium user. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. ", The World Bank. 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). 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. Q4: What federal solutions are being discussed? The United States owes China approximately $980.8 billion as of May 2022. 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). 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. "It means our U.S. directors have a hard task on their hands when it comes to negotiation.". July 18, 2022. Definition and Analysis, What Is National Debt and Where It Fits Within the Economy, Alexander Hamilton and the National Economy, The History of US Government Financial Bailouts, What Was the Open Door Policy in China? Mexico has gone from 38% to 42%. Other foreign holders included oil-exporting countries and Caribbean banking centers. A repurchase agreement is a form of short-term borrowing for dealers in government securities.