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. China's economy would suffer along with everyone else's. Legal Statement. Then ownership jumped 30% from 2019 to 2020, from some 247,000 acres to roughly 352,000. You've successfully subscribed to this newsletter! If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. "China's Currency Policy," Page 1. While many politicians like to angrily proclaim that China owns the United States because it owns so much of the U.S. debt, economists say that claim is far more rhetoric than fact. What does China own in the U.S.? | CNBC Explains - YouTube 04 Mar 2023 03:14:21 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). Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. But, exactly how much does the nation own? The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. How much US debt does China own and why is it important? Should the PBOC stop interfering, most economists agree that the renminbi would self-correct and appreciate in value, thus making Chinese exports more expensive. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. China does not publish the figures on its international lending. China has become one of the largest economies in the world. 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. China held 1.1 trillion U.S. dollars in U.S. securities. Consider what the current arrangement means: The Chinese buy up dollar bills in the form of Treasurys. Concern about Chinese purchases of U.S. agricultural land increased in late January when the China-based Fufeng Group Ltd. was prevented from building a cornmill on land close to a North Dakota Air Force base after officials called it a security risk. Additionally, China is seeking to build 5G networks in the United States and other Western countries, which could potentially feed personal information and sensitive data to the Chinese Communist Party. What Is the Public Debt, and When Is It Too High? Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. ", U.S. Department of the Treasury. Chinese billionaire and businessman Wang. 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. 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. (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. 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. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. This helps China hold down the cost of its exported goods, which tends to make China, like any nation, a stronger performer in international trade. U.S. Debt to China: How Much Is It, and Why? Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. The US National Debt and How It Affects You. Most countries want their currency values to fall so they can win global currency wars. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. 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. 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. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. Access to this and all other statistics on 80,000 topics from, Show sources information 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. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. Investopedia does not include all offers available in the marketplace. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. How Did the U.S. National Debt Get So Big? That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Former Vice President Mike Pence speaks during an event. Quote and Meaning, What Was the Eisenhower Doctrine? How Much U.S. Debt Does China Really Own? - ThoughtCo It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Second, the Chinese rely on American markets to buy Chinese-produced goods. However, they need renminbithe official currency of the People's Republic of Chinato pay their workers and accumulate money locally. How Much U.S. Debt Does China Really Own? China also became the world's biggest exporter in 2009. U.S. consumers benefit from low consumer prices. companies.". White House National Security Advisor Jake Sullivan said in a statement that the United States welcomes the commitments of Israel and the Palestinian Authority to reduce tensions and prevent further violence. In 2011, the total U.S. debt stood at $14.3 trillion. These foreign interests are pretty smart. 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). Japan consistently tops the list, owning about $1.3 trillion as of October 2021. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. These include white papers, government data, original reporting, and interviews with industry experts. 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. So, Lowes operates independently of Walmart. Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. CNBC's Uptin Saiidi explores some of China's biggest assets in New York and explains how the tr. US Navy laments China's shipbuilding supremacy February 27, 2023; US dangles F-35 to lure India away from Russia February 27, 2023; Ukraine marks the future of remote-control war February 23, 2023; China's 'phantom space strike' made to spoof US defenses February 23, 2023; US secretly amassing killer drone swarms to repel China February . It receives these dollars from Chinese companies that receive them as payments for their exports. In 2016, HNA Group, Chinese aviation and shipping giant, bought a 25% stake for $6.5 billion. While their market shares may be different percentages (Amazon owns 39% of all US ecommerce sales, while Alibaba owns 58.2% of all retail ecommerce shares in China), they each dominate their respective countries in which they began. Mexico has gone from 38% to 42%. China's position as the largest foreign holder of U.S. debt gives it some political leverage. 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. . It was revealed that just last year alone, China spent $6.1 billion dollars on housing in the U.S. making it America's top foreign buyer. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. RT @lillybug000: How much more does any American have to see to realize our government is owned by China. Available: https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022, Available to download in PNG, PDF, XLS format, Cross-border commercial real estate investment in the United States, Origin of foreign residential buyers in the U.S. 2016-2018, Cross-border commercial real estate investments in the U.S. 2018, by country, Number of commercial properties in the U.S. 2018, by investor country, Property purchased by foreign buyers in U.S. 2009-2022, by type of area, Share of commercial space leased by foreign clients U.S. 2018, by size, Share of commercial space leased by foreign clients U.S. 2018, by lease term, Perception of real estate market among foreign investors in U.S. 2016-2018, Perception of U.S. real estate prices among foreign buyers 2018, Reasons why foreign buyers don't buy real estate in the U.S. 2019, Share of Chinese buyers of residential property in the U.S. 2011-2022, Total residential property sales to Chinese buyers in the U.S. 2010-2022, Total number of residential properties bought by Chinese buyers in the U.S. 2010-22, Average purchase price of residential property by Chinese buyers in the U.S. 2010-22, Median purchase price of residential property by Chinese buyers in the U.S. 2010-2022, Share of CRE investments from China/Hong Kong in the U.S. 2011-2017, by investor type, Value of China/Hong Kong CRE investments made in the U.S. 2011-2017, Share of Canadian buyers of residential property in the U.S. 2011-2022, Total residential property sales to Canadian buyers in the U.S. 2010-2022, Average purchase price of residential property by Canadian buyers in the U.S. 2010-22, Median purchase price of residential property by Canadian buyers in the U.S. 2010-22, Share of UK buyers of residential property in the U.S. 2011-2022, Total residential property sales to buyers from the UK in the U.S. 2010-2021, Total number of residential properties purchased by UK buyers in the U.S. 2010-2021, Average purchase price of residential property by UK buyers in the U.S. 2010-2021, Median purchase price of residential property by UK buyers in the U.S. 2010-2021, Total residential property sales to Indian buyers in the U.S. 2010-2022, Average purchase price of residential property by Indian buyers in the U.S. 2010-2022, Median purchase price of residential property by Indian buyers in the U.S. 2010-2022, Share of Mexican buyers of residential property in the U.S. 2011-2022, Total residential property sales to Mexican buyers in the U.S. 2010-2022, Total number of residential properties bought by Mexican buyers in the U.S. 2010-2022, Average purchase price of residential property by Mexican buyers in the U.S. 2010-22, Median purchase price of residential property by Mexican buyers in the U.S. 2010-2022, Average price of residential property in France 2022, by property type, Breakdown of housings in France 2020, by square meter price, Average price of rental flats per square meter in France 2020, Average rent price for apartments in the largest French cities 2022, Value of commercial real estate investment in France 2021-Q1 2022, by type, Origin of major foreign buyers of U.S. residential property in 2022, Share of Brazilian buyers of residential property in the U.S. 2011-2020, Share of German buyers of residential property in the U.S. 2011-2020, Housing purchase transactions volume Jeju, South Korea 2009-2021, Housing transactions volume Busan, South Korea 2009-2021, Housing transactions volume Gyeonggi, South Korea 2009-2021, Housing purchase transactions volume Gyeonggi, South Korea 2009-2021, Housing transactions volume Jeju, South Korea 2009-2021, Realtors' sources of referrals for foreign residential property buyers U.S. 2022, Apartment purchase transactions volume Incheon, South Korea 2009-2021, Find your information in our database containing over 20,000 reports, Chinese buyers were responsible for only six percent of all sales to foreigners, bought the most U.S. residential property, property sales to foreign buyers peaked at 153 U.S. dollars in 2017. This material may not be published, broadcast, rewritten, 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. Q1: Where and why are foreign entities purchasing farmland in the United States? "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. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. The real question is: How much of the totalU.S. debtdoes the U.S.federal governmentowe to Chinese lenders? We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. How do I know if my stimulus was deposited? U.S. Debt to China: How Much Is It, and Why? - The Balance 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. 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 . Longley, Robert. 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. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. [Online]. Tucker Carlson: America's Leadership Class Spent Years Covering Up 2023 Center for Strategic & International Studies. Stoves, refrigerators, washers and dryers from General Electric have been around for more than 100 years, but starting last year, the appliance division of the iconic company has been Chinese. 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. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. 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. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. Manuel Balce Ceneta/AP Photo. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. Why A Secretive Chinese Billionaire Bought 140,000 Acres Of Land In Texas That makes Chinese exports cheaper than American-made goods, increasing sales. | Countries Who Own The Most Acres U.S. National Debt or Federal Deficit? Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? 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. Center for Strategic and International Studies In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar.
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