Foreign Ownership and Holdings of U.S. Agricultural Land China's economy would suffer along with everyone else's. If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive. 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. | 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. And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. "Major Foreign Holders of Treasury Securities [2000-2020]. Here's a quick and fascinating breakdown by total. 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. 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.. Citing national security concerns, the House Appropriations Committee included an amendment in the recent Department of Agriculture-Food and Drug Administration spending bill that prohibits the purchase of agricultural land located in the United States by Chinese-owned companies. The offers that appear in this table are from partnerships from which Investopedia receives compensation. ", Congress.gov. Office of the Historian. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. Nonagricultural land (such as homesteads and roads) accounted for 2%. China is buying billions in US farmland and lawmakers are scrambling to "Chinese companies have been carrying out unchecked reverse mergers for years now, and the media (influence) has been going under the radar for years now," Murad added. 10 iconic American companies owned by Chinese investors - CNBC Even at a slow pace, dollar demand would drop. 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. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. 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. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. How Much Land Does China Own? | askBAMLand 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. 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. ", U.S. Department of the Treasury. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. companies.". As a result, the public does not have a complete picture of which foreign entities own how much U.S. farmland or what the land is being used for. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. 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. Powered and implemented by FactSet Digital Solutions. Agricultural Land. How Hollywood Sold Out to China - The Atlantic Along similar lines, climate-related efforts to increase biofuel production and expand afforestation and reforestation could reduce the amount of land available for food production in the future. How Much U.S. Farmland Does China Really Own? More Than Bill GatesAnd The buying gorge went from April 2021 to March 2022 and . China acquired another 32,000 U.S. agricultural acres in 2021not as much as they scooped up in 2020, but 98% higher than their combined growth between 2015 and 2019. 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. CSIS does not take specific policy positions. Given the state of the AFIDA data, it seems it is doing neither. The United States owes China approximately $980.8 billion as of May 2022. National Debt or Federal Deficit? That changed with the USMCA. Owe China? Debt to the Penny., U.S. Department of the Treasury. Its economy grew more than 10% for the three decades before the 2008 recession. The last significant increase in acres occurred between 2012 and 2013 . "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. The Chinese government's theft of intellectual property has been an open secret for decades. 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. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. From May 2021 to May 2022, the debt to Japan and China decreased by 4% and 9%, respectively. Powered and implemented by FactSet Digital Solutions. These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. "Bretton Woods-GATT, 19411947.". The House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. A paid subscription is required for full access. 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. United States Treasury Fiscal Data. Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. Most countries want their currency values to fall so they can win global currency wars. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. China also is liberalizing its control of the yuan, also called the "renminbi." Among all of those foreign creditors to which America owes money, China led the way at $1.17 trillion, followed by Japan, at $1.07 trillion as of January 2018. How Much Is the Per Capita Money Supply in the U.S.? A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. As a Premium user you get access to the detailed source references and background information about this statistic. Two bills introduced in the House of Representatives and the Senate argue foreign influence on American agricultural land could affect Americas economy, food supply, and national security. Despite holding little U.S. land, China remains focus of foreign China's Large Position in U.S. Treasuries. 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-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek Pentagon releases list of companies linked to Chinese military They use different business structures to further conceal it.. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. Congress can then increase the federal spending that spurs U.S. economic growth. The top two foreign holders of U.S. debt are Japan and China. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. China has become one of the largest economies in the world. 'American Soil' Is Increasingly Foreign Owned : NPR Biden thanks King of Jordan for "historic meeting" in Aqaba and The products are still made in the USA, but the decisions are made in China. The Communist Party has actively supported investments in foreign agriculture as part of its One Belt One Road economic development plans, aiming to control a greater piece of Chinas food supply chain. If you are an admin, please authenticate by logging in again. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. 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. Mutual Fund and ETF data provided by Refinitiv Lipper. ", The World Bank. and Caitlin Welsh. 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. "The Chinese have a strong foothold here in the U.S., and Chinese firms have access to what seems like infinite government lending, and because the country's goal of world dominance is ingrained into the minds of their business leaders," explained Paul Murad, president of Nevada-based real estate firm Metroplex. ", U.S. Department of the Treasury. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. March 18, 2016, 2:10 PM. Profit from the additional features of your individual account. The Netherlands is the second largest foreign owner with 4.6 million acres. Chinas demand for Treasurys helps keep U.S. interest rates low. While lawmakers remain laser-focused on Chinese buyers, other nationals own much more agricultural property in the United States. 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. In the wake of Covid-19 supply chain disruptions and escalating tensions with China, U.S. lawmakers have specifically increased scrutiny of purchases by Chinese investors. Securities. The USDA claims that its goal is to monitor foreign ownership of land, not to exact penalties. Countries Who Own The Most Acres U.S. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. Crops beings harvested on an Iowa farm in 2018, Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases, North Dakota Turns Against Chinese Corn Mill Project. Anyone can buy U.S. debt. But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Across the country, the 2013 purchase of Smithfield Foods by the Chinese firm Shuanghui, now called WH Group, received national attention and escalated concerns about Chinese intervention in U.S. food systems. "How Much Money Does the World Owe China? And Human Rights Watch has written that China is an'existential threat' to human rights." Breaking Down the US Debt and Who Owns It.

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