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For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. 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. China produces 97 percent of U.S. antibiotics and about 80 percent of active pharmaceutical ingredients used in American drugs, giving the Chinese Communist Party absolute control of. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek Investopedia requires writers to use primary sources to support their work. China's position as the largest foreign holder of U.S. debt gives it some political leverage. China's state-directed industrial policy has outmaneuvered America's laissez-faire approach to securing access around the world to a metal that's taking on growing economic and strategic . As it is not known exactly how much US land is owned by China. However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. But, exactly how much does the nation own? Discover the current debt ceiling and its economic impact. Retrieved from https://www.thoughtco.com/how-much-debt-does-china-own-3321769. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. 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's economy would suffer along with everyone else's. 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. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). "He firmly believes that China, before the year [20]30, '35, is going to own America because autocracies can make quick decisions." The president did not elaborate on what was meant by "own. Control of 8,000-plus of American theater screens and other media platforms allows China to project "soft power" and block unflattering depictions of the Chinese government from being presented, both in terms of creative production and mass distribution. 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. "In 2017, the United States produced zero rare earth minerals. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. 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). This dollar collapse could disrupt international markets even more than the 2008 financial crisis. That's a decline of. 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. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. This series of events prompted Congress to look at how to prevent Chinese ownership in U.S. agriculture, even though other foreign entities, like Brazilian-owned JBS, control similarly large portions of U.S. food supply chains. Walmart owns no shares. 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). Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. How much do banks charge to manage a trust? 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. Well, really, the hallmark has been an almost otherworldly disconnection from the actual affairs of the United States. Representative Grace Meng expressed concern that the amendment could fuel already rising anti-Asian hate, and the USDA and advocacy groups have pointed out that the USDA does not have the authority to intervene in private land deals. 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. If the Chinese suddenly decided to call in all of the federal government's obligations (which isn't possible, given the maturities of debt securities), others would likely step in to service the market. Disney is in no way owned by Chinese interests in terms of shareholders. "Report on Foreign Portfolio Holdings of U.S. 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. "Debt Position and Activity Report, June 2022," Page 1. It has held up to $1.3 trillion of U.S. debt. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. 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. Critical Questionsis produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. 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. The top two foreign holders of U.S. debt are Japan and China. 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. What US companies are now owned by China? ", U.S. Department of the Treasury. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. What Is the Public Debt, and When Is It Too High? China holds more than $1 trillion of the U.S. national debt. The offers that appear in this table are from partnerships from which Investopedia receives compensation. (ChinaOwnsUs campaign). When this land changes hands, theyre going to gobble it up, he said of foreign buyers. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. 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. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. How much of the U.S. land does China own? - FinanceBand.com Tucker Carlson: America's Leadership Class Spent Years Covering Up Its also a small percentage of the nearly 900 million acres of total American farmland. 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. Mexico has gone from 38% to 42%. How do I know if my stimulus was deposited? Amanda Jackson has expertise in personal finance, investing, and social services. Consequences of Owing Debt to the Chinese, Government Bond: What It Is, Types, Pros and Cons, Repurchase Agreement (Repo): Definition, Examples, and Risks, U.S. Debt Ceiling: Definition, History, Pros, Cons, Clashes, Debt-to-GDP Ratio: Formula and What It Can Tell You, Major Foreign Holders of Treasury Securities, Debt Position and Activity Report, June 2017, Debt Position and Activity Report, June 2022, Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill, Frequently Asked Questions About the Public Debt, China's Gold Market: Progress and Prospects, Federal Debt Held by Federal Reserve Banks. How Much U.S. Debt Does China Own? - Investopedia The NYFC also points to both urban and rural development as a threat to the future of U.S. farms, since converting farmland to other uses drives up prices and makes the land unaffordable for beginning farmers. 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 debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. 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. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. 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. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The United States owes China approximately $980.8 billion as of May 2022. You can learn more about the standards we follow in producing accurate, unbiased content in our. Douglas R. Bush, Deterring a Cross-Strait Conflict: Beijing's Assessment of Evolving U.S. Strategy, Rethinking Humanitarian Aid: A Conversation with Michelle Nunn, President and CEO of CARE USA, Foreign Purchases of U.S. 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. The resulting loss of export business would lead to a major unemployment crisis in China. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. 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. Securities. Its research is nonpartisan and nonproprietary. 18, far behind No. Manuel Balce Ceneta/AP Photo. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . China holds more than $1 trillion of the U.S. national debt. Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. China is buying billions in US farmland and lawmakers are scrambling to 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. China owns roughly $1.08 trillion worth of U.S. debt. China holdings of U.S. debt fall below $1 trillion for the first time (2022). As its exports decline, China is less able to invest in U.S. Treasurys. For example, foreign investors can set up limited liability companies in the U.S. and designate an American owner to circumvent the reporting requirements while still controlling the operation behind the scenes, said Joe Maxwell, president of the progressive advocacy group Family Farm Action. In return, American consumers get cheap Chinese products and incoming investment capital. Foreign Purchases of U.S. Agricultural Land: Facts, Figures, and an 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. ", 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. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. United States Treasury Fiscal Data. Its economy grew more than 10% for the three decades before the 2008 recession. "GDP Growth (Annual %) - China. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. | Photo by Nathan Howard/Getty Images. 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. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. or redistributed. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. 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. Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. How much of the USA is owned by China? 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. The measure is expected to reach the House floor before the end of July, as part of a broader appropriations package, although the Senate has not yet drafted its own version of the spending bill. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. Pentagon releases list of companies linked to Chinese military Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. The last significant increase in acres occurred between 2012 and 2013 . Howard Evans on Twitter: "RT @lillybug000: How much more does any 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. Every year since 2010, China has held more than $1 trillion in U.S. debt. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. ", 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. "How Much U.S. Debt Does China Really Own?" 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). 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. 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. Who owns America? Hint: It's not China - CNN Profit from the additional features of your individual account. Here's a quick and fascinating breakdown by total. The products are still made in the USA, but the decisions are made in China. "General Government Gross Debt.". 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. As a Premium user you get access to background information and details about the release of this statistic. 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. Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. Legal Statement. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. Can you rollover Roth 401k to Roth IRA while still employed? China needs this growth to raise its low standard of living. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. U.S. Debt to China: How Much Is It, and Why? "GDP Growth (Annual %) - Japan, China.". Foreign Ownership and Holdings of U.S. Agricultural Land companies.". This includes the Federal Reserve, which already owns six times as much debt as 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. Chart. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. 3 1. These include white papers, government data, original reporting, and interviews with industry experts. You can only download this statistic as a Premium user. Foreign ownership of U.S. agricultural land doubled from 2009 to 2019, according to U.S. Department of Agriculture (USDA) records, and policymakers have become increasingly concerned about foreign control of the U.S. food supply. 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 . "Federal Debt Held by Federal Reserve Banks. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. | How Much U.S. Farmland Does China Really Own? More Than Bill GatesAnd 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. 2023 FOX News Network, LLC. Additionally, Walmart has never owned Dollar Tree and has no plans to acquire the business. Contractionary Monetary Policy.