Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. The Chinese Investor owns about 14% of Snapchat's shares. With most forms of U.S. debt, like Treasury bills, redeemable in U.S. dollars, worldwide trust in the dollar and the U.S. economy, in general, remains Chinas main safeguard for the yuan. 2023 Center for Strategic & International Studies. That made the yuan more attractive to forex traders in global markets. "How Much U.S. Debt Does China Really Own?" According to the U.S. Census Bureau, the U.S. has been suffering from a significant trade deficit with China since 1985, meaning that the U.S. buys more goods and services from China than China buys from the U.S. Chinese exporters receive U.S. dollars for their goods sold to the U.S. Is it better to pay off credit card or pay down? U.S. Debt to China: How Much Is It, and Why? Longley, Robert. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. ThoughtCo. 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. See Media Page for more interview, contact, and citation details. statistic alerts) please log in with your personal account. or redistributed. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. These include white papers, government data, original reporting, and interviews with industry experts. U.S. Debt to China: How Much Is It, and Why? - The Balance How Much U.S. Debt Does China Own? - The Balance Fact Check: Does the Chinese Communist Party Own AMC - Newsweek TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? Manuel Balce Ceneta/AP Photo. China has become one of the largest economies in the world. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Contractionary Monetary Policy. Countries Who Own The Most Acres U.S. According to the Federal Reserve and U.S. Department of the Treasury, foreign countries held a total of 7.03 trillion U.S. dollars in U.S. Treasury securities as of March 2021. 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. 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. Q5: What is the real threat to U.S. food security? In, National Association of Realtors. Currently, you are using a shared account. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. 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. For example, the huge amount of debt that the U.S. government owes Chinese lenders has been the subject of countless debates, headline news stories, and political platforms for decades. 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. "Major Foreign Holders of Treasury Securities. Office of the Historian. It has held up to $1.3 trillion of U.S. debt. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. As Chinese investors buy up U.S. Treasury products, they help increase the value of the dollar. You need a Statista Account for unlimited access. ", 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. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. World Gold Council. What Is the Public Debt, and When Is It Too High? For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. On a dollar-value basis, total manufacturing imports from Mexico to the U.S. increased 10% between 2017 and 2018, from $278 billion to . However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. And its findings may be surprising to some. When the pandemic hit, Smithfield increased pork exports to China even as the United States experienced widespread meat shortages due to supply chain disruptions and Smithfield closed some of its plants due to poor working conditions. Its also a small percentage of the nearly 900 million acres of total American farmland. Debt to the Penny., U.S. Department of the Treasury. Its a massive undertaking to verify who really owns [the land], Maxwell said. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. 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. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Countries with lower currency values export more, since their products cost less when sold in foreign countries. China holds more than $1 trillion of the U.S. national debt. A government bond is issued by a government at the federal, state, or local level to raise debt capital. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. "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. This amount is subject to market fluctuations. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. As a Premium user you get access to background information and details about the release of this statistic. 'American Soil' Is Increasingly Foreign Owned : NPR Chart. This includes the Federal Reserve, which already owns six times as much debt as China. Please do not hesitate to contact me. 3 1. "Federal Debt Held by Federal Reserve Banks. "The first priority is to reclaim our critical supply chains so that we can become self-secure instead of reliant on the Chinese government,"Will Coggin, managing director of the American Security Institute, told Fox News. Furthermore, policymakers have signaled no efforts to improve state- or national-level information on foreign purchases of U.S. farmland, leaving the true picture obscured. 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. That data also shows that the. 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. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. 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. 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 House Bill is being reviewed by the Committee on Financial Services and the Committee on Agriculture. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. National Association of Realtors. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. 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. 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 . 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). Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. Smithfield was also in line to receive money from the program, which was created to help U.S. farmers strung by trade retaliation from China and other competitors. Accessed March 04, 2023. https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. (July 18, 2022). Read our. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. Market data provided by Factset. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. "Debt to the Penny. While some states have strict laws in place, others are more open to foreign investments. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. 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. "Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States.". Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. Pressing Challenges to U.S. Army Acquisition: A Conversation with Hon. At some price point, U.S. consumers would buy American products instead. Given the state of the AFIDA data, it seems it is doing neither. Q1: Where and why are foreign entities purchasing farmland in the United States? Canadian investors hold the largest share of this land, at 29 percent, with the Netherlands, Italy, Germany, and the United Kingdom collectively owning another 33 percent. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. As it is not known exactly how much US land is owned by China. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. That changed with the USMCA. The debate over farm ownership comes amid broader efforts by Congress and the Biden administration to curb the nations economic reliance on China, especially in key industries like food, semiconductors and minerals deemed crucial to the supply chain. Washington, DC 20036. US media outlets received millions of dollars from China to sell its Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. Breaking Down the US Debt and Who Owns It. Show publisher information However, the full extent of the Chinese investment as it stands in the U.S. today is far from transparent. (Other Hollywood companies are partly or wholly owned by Chinese interests We know that education is one of the most common reasons that Chinese families purchase real estate in the US, he said. Stephen Gandel. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. New Data Shows U.S. Companies Are Definitely Leaving China - Forbes She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. 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. 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. Mutual Fund and ETF data provided by Refinitiv Lipper. The Netherlands is the second largest foreign owner with 4.6 million acres. China is buying up American farms. Washington wants to crack - POLITICO China, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. The average American is made better off by foreigners providing inexpensive services and only demanding pieces of paper in return. How Much U.S. Debt Does China Really Own? - ThoughtCo ", The World Bank. CSIS does not take specific policy positions. IOUs are formed and financed through joint efforts of the U.S. Department of the Treasury and the Federal Reserve. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. As a Premium user you get access to the detailed source references and background information about this statistic. 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. 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..