Citing staff shortages, the Department of Agriculture didnt penalize foreign parties for violating reporting rules from 2015 to 2018, prompting 28 lawmakers to criticize the departments complete lack of accountability and oversight Monday in a letter obtained by the Wall Street Journal. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. All rights reserved. Show publisher information USDA reports that foreign land holdings have increased by an average of 2.2 million acres per year since 2015. 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. . Quotes displayed in real-time or delayed by at least 15 minutes. 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. ", TreasuryDirect. It is not only foreign companies who take advantage of this regulatory loophole, howevercompanies from other states and cities around the United States are also buying up land in Arizona to take advantage of the states loose water regulations, putting Arizonas long-term water resources at risk. A3: The only federal law governing these transactions is the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. 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. Data cover both foreign-owned (29.1 million acres) and U.S. The Biggest American Companies Now Owned by the Chinese - Yahoo! Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. And Human Rights Watch has written that China is an'existential threat' to human rights." U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. "Frequently Asked Questions About the Public Debt. Office of the Historian. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. Countries with lower currency values export more, since their products cost less when sold in foreign countries. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. China owns roughly $1.08 trillion worth of U.S. debt. What does China own in the U.S.? | CNBC Explains - YouTube Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. These include white papers, government data, original reporting, and interviews with industry experts. First, because U.S. securities like Treasury bills come with varying maturity dates, it would be impossible for the Chinese to call them all in at the same time. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM Billions of dollars flow into the U.S. from China every year. Mutual Fund and ETF data provided by Refinitiv Lipper. Fact check: Smithfield, owned by Chinese firm, sells US-processed meat However, the items are Manufactured and Assembled in China, with Foxconn, a Taiwanese-based firm, producing the majority of Apple's products. 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. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? These investments artificially increase the value of that land, which then denies young and beginning farmers opportunities to farm.. China holdings of U.S. debt fall below $1 trillion for the first time 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. The government itself actually holds just under one-third, about $5 trillion, of the $19.8 trillion government debt in the form of trust funds dedicated to legislatively-mandated programs like Social Security, Medicare, and Medicaid and veterans benefits. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. The United States owes China approximately $980.8 billion as of May 2022. As a Premium user you get access to the detailed source references and background information about this statistic. How much of the U.S. land does China own? Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. The committee unexpectedly adopted Newhouses amendment to the Agriculture-FDA spending bill (H.R. "Federal Debt Held by Federal Reserve Banks. 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. Get full access to all features within our Business Solutions. As its exports decline, China is less able to invest in U.S. Treasurys. While some states have strict laws in place, others are more open to foreign investments. 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. You've successfully subscribed to this newsletter! A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. As soon as this statistic is updated, you will immediately be notified via e-mail. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. ", The World Bank. "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. "Major Foreign Holders of Treasury Securities.". 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. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. 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. China held 1.1 trillion U.S. dollars in U.S. securities. Critics claim that the rule change was instrumental in allowing the deal to go through as written, and some members of Congress warned of Chinese government involvement in the purchase. 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. China also became the world's biggest exporter in 2009. US media outlets received millions of dollars from China to sell its To use individual functions (e.g., mark statistics as favourites, set China also is liberalizing its control of the yuan, also called the "renminbi." How can I increase my credit score by 25 points? 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 greatest share is in Texas, with over 4.4 million acres, followed by Maine (3.3 million acres) and Alabama (1.8 million acres). 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. Christmas in Mainland China is not a public holiday and is not related to religion at all. Mexico has gone from 38% to 42%. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. It is responsible for lower interest rates and cheap consumer goods. With an aging U.S. farmer population and not enough new farmers able to enter the industry, more land will inevitably be converted to other uses or sold to foreign and domestic investors unless policies are put in place to support the next generation of farmers. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. National Association of Realtors. "How Much U.S. Debt Does China Really Own?" "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. 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. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. This also reduces the purchasing power of Chinese earners. 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. 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. Howard Evans on Twitter: "RT @lillybug000: How much more does any Agricultural Land. This is just a small part of the 30 . "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. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. Federal Reserve Bank of St. Louis. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. Secondly, China needs American markets to buy their exported goods. 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. China does not publish the. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. The renewed focus on curbing foreign farm purchases comes as Biden and Agriculture Secretary Tom Vilsack roll out a series of actions to bolster the food supply chain, following major disruptions caused by the pandemic.