Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. 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. (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. The last significant increase in acres occurred between 2012 and 2013 . 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. 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. 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. In late May, the Senate unanimously passed the bipartisan Holding Foreign Companies Accountable Act in a bid to force foreign companies with China at the likely forefront to adhere to U.S. securities law, and compel some to be removed from American stock exchanges. Most of the rest of the U.S. debt is owned by individual investors, corporations and other public entitiesincluding foreign creditors like the Chinese government. 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 . 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.. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. by Jamie Lutz "Major Foreign Holders of Treasury Securities [2000-2020]. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. The ideal entry-level account for individual users. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. 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. 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. The hardware brand is a publicly-traded company that does not have a majority shareholder. Milos Maricic, an international affairs expert and World Economic Forum contributor, concurred that while China owns close to $150 billion in U.S. companies not particularly huge in comparison to the U.S. economy there is a lot about the available figure that we simply do not know. U.S.-based companies also own over nine million acres in other countries. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. Please do not hesitate to contact me. For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. The United States owes China approximately $980.8 billion as of May 2022. Investopedia requires writers to use primary sources to support their work. That changed with the USMCA. Definition and Impact. 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). 2023 FOX News Network, LLC. But the contrition paid off: F9 grossed $136 million in China its first weekend, nearly double its . 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. Interest on the National Debt and How It Affects You, US Debt by President: By Dollar and Percentage, US Budget Deficit by Year Compared to GDP, the National Debt, and Events, Chinas Economic Slowdown and How It Affects You, China's Economy and Its Effect on the U.S. Economy, China's Currency, the Yuan, and How It Affects You, How the Yuan Could Become a Global Currency, Debt Ceiling Dictionary: Your Guide to the Jargon, Major Foreign Holders of Treasury Securities, Report on Foreign Portfolio Holdings of U.S. Securities, Major Foreign Holders of Treasury Securities [2000-2020], Chinas Economic Rise: History, Trends, Challenges, and Implications for the United States. This also reduces the purchasing power of Chinese earners. 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. China also is liberalizing its control of the yuan, also called the "renminbi." With the U.S. dollar considered one of the safest and most stable currencies in the world, dollar-pegging helps the Chinese government maintain the stability and value of the yuan. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. As of the end of November, China owned US$1.063 trillion of the total outstanding US government debt issued by the US Department of the Treasury. In addition to federal action, some states, like Arizona, could do more to protect their local resources and communities from exploitation by domestic and foreign entities. This acquisition put two Chinese directors on Hilton's Board of 10. Does paying off all debt increase credit score? America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . That made the yuan more attractive to forex traders in global markets. From 2016, the estimates include only residential transactions. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. Last July, a Politico report, citing Agriculture Department statistics for 2020, said Chinese companies controlled about $1.9 billion worth of agricultural land. TreasuryDirect. WH Group is a publicly-traded company with shareholders around the world. And its findings may be surprising to some. 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. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. to incorporate the statistic into your presentation at any time. Christmas in Mainland China is not a public holiday and is not related to religion at all. 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. 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. 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 simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. 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. Billions of dollars flow into the U.S. from China every year. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. Countries Who Own The Most Acres U.S. 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. Pallets of sod cover part of the 230 acre Kuenzi Turf & Nursery on June 2, 2021 in Salem, Oregon. That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. The American Security Institute recently released a report and launched a campaign, featuring a billboard in Times Square, to draw further attention to the extensive array of sectors the Chinese government and its partners have invested into. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. 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. Debt to the Penny., U.S. Department of the Treasury. Historically, between 20,000 and 40,000 residential properties were bought by. Though the magazine named him the largest private farmland owner in January 2021, the Microsoft founder came under fire in early 2022 when he was briefly barred from purchasing 2,100 acres of North Dakota farmland. World Gold Council. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Secondly, China needs American markets to buy their exported goods. 2 This amounts to more than 13% of the U.S. debt held overseas and about 3.2% of the United States' total debt load. How Hollywood Sold Out to China - The Atlantic 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. Before June 2010, Treasury reports showed that China held about $843 billion in debt. On the state level, regulations vary. China is buying billions in US farmland and lawmakers are scrambling to You only have access to basic statistics. 2023 Center for Strategic & International Studies. "Debt to the Penny. 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. Its economy grew more than 10% for the three decades before the 2008 recession. Q1: Where and why are foreign entities purchasing farmland in the United States? How Much U.S. Debt Does China Really Own? - ThoughtCo 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. 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. Countries with lower currency values export more, since their products cost less when sold in foreign countries. 2021 by the Center for Strategic and International Studies. The FARMForeign Adversary Risk Managementact, introduced in the House of Representatives and the Senate on January 25, would trigger a Department of Agriculture and Government Accountability Office investigation into foreign influence on Americas agriculture industry. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." The Netherlands is the second largest foreign owner with 4.6 million acres. Walmart owns no shares. To do that, China had to loosen its peg to the dollar. U.S. consumers benefit from low consumer prices. ", Congress.gov. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. We also reference original research from other reputable publishers where appropriate. 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 company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. ", The World Bank. Q4: What federal solutions are being discussed? Access to this and all other statistics on 80,000 topics from, Show sources information At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. Given the state of the AFIDA data, it seems it is doing neither. What's the Difference? (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. Her modest, two-story white farmhouse has . Haier bought GE for $5.4 billion, a recording breaking sum at that time. Here's a quick and fascinating breakdown by total. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. That effort includes greater scrutiny of large meat processing companies like JBS and Smithfield, as well as plans to tighten the requirements for meat to be labeled a Product of the USA.. This helps inflate the value of the dollar. Alibaba handles more business than any other e-commerce company. "GDP growth (Annual %) - China. USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. 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 . 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. The largest holder of U.S. debt is the United States government. The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. 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. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. China does not publish the figures on its international lending. But some analysts believe the ongoing crisis lays bare the inroads China has made on U.S. soil. United States Treasury Fiscal Data. ", TreasuryDirect. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM Business Solutions including all features. China's low-cost competitive strategy seems to be working. 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. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. 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. Greed Is Good or Is It? If it were to call in its debt, U.S. interest rates and prices could rise, slowing U.S. economic growth. China "Owns" Us: How the Chinese Are Buying Up America 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. ", Harvard Business Review. For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. 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. How much of the USA 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. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. As of the start of 2020, Chinese investors owned about 192,000 acres of U.S. agricultural land valued at about $1.9 billion, according to Politico. 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. ), after gaining momentum seeded in farm states.
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