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. According to USDA data, foreign investors owned at least 35.2 million acres of U.S. agricultural land in 20192.7 percent of U.S. farmland, an area almost the size of Iowa. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. or redistributed. 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. Federal Reserve Bank of St. Louis. It receives these dollars from Chinese companies that receive them as payments for their exports. China is taking steps to make its currency, the yuan, transition to a global currency. The first and most important is that China wants its currency, the yuan, pegged to the dollar. Quote and Meaning, What Was the Eisenhower Doctrine? "We 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. "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. TreasuryDirect. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. National Association of Realtors. 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. 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. The offers that appear in this table are from partnerships from which Investopedia receives compensation. You need at least a Starter Account to use this feature. Christmas in Mainland China is not a public holiday and is not related to religion at all. 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. Chinese lenders snap up so much of the U.S. debt for one basic economic reason: protecting its dollar-pegged yuan. (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 extent of Chinese investment in recent years has also raised red flags around U.S. national security, particularly in the realm of rare earth minerals. This statistic is not included in your account. A government bond is issued by a government at the federal, state, or local level to raise debt capital. Office of the Historian. That changed with the USMCA. "Debt Position and Activity Report, June 2017," Page 1. by Jamie Lutz statistic alerts) please log in with your personal account. All rights reserved. In 2011, the total U.S. debt stood at $14.3 trillion. The Chinese government's theft of intellectual property has been an open secret for decades. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. For example, critics say that should the Chinese government suddenly call indemand immediate repaymentof all of the U.S. governments obligations, the American economy would be hopelessly crippled. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. So, in part, Chinese demand for American property is a sign of their desire to give their children the best opportunities to have a successful future.. This might not sound like a lot, but Chinese ownership of American farmland has exploded dramatically over the last decade. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. The United States currently produces more than enough food per capita, even after adjusting for food waste. "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. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s). Food insecurity among U.S. families is primarily driven by poverty, not a lack of food. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Countries Who Own The Most Acres U.S. As of 2019, a total of 191,000 acres of American land were owned by China. Is Americas Debt to China Really So Bad? In 2019, it grew at 6.1%, an even more sustainable rate. The Netherlands is the second largest foreign owner with 4.6 million acres. In August 2022, the Asian nation owned $971.8 billion in Treasurys, roughly 13% of the U.S. national debt. Chinese buyers comprise one of the largest groups of foreign buyers of residential property in the United States. The money flowing into agricultural real estate from other countries also makes it difficult for new farmers in the U.S. to afford land as outside buyers bid up prices. A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. Chart. 5. What's the Difference? Does paying off all debt increase credit score? "How Much U.S. Debt Does China Really Own?" Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. US President Joe Biden, King of Jordan II, for the "historic meeting" between Palestinians and Israelis in Aqaba. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Can you rollover Roth 401k to Roth IRA while still employed? In simpler terms, the government wrote itself a really big IOU and bankrupted one account to finance another activity. Nonagricultural land (such as homesteads and roads) accounted for 2%. 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. China has the second-greatest amount of U.S. debt held by a foreign country. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Here's a quick and fascinating breakdown by total. Every year since 2010, China has held more than $1 trillion in U.S. debt. "Debt to the Penny. China's economy would suffer along with everyone else's. Discover the current debt ceiling and its economic impact. So, Lowes operates independently of Walmart. I'm a reporter for Forbes' explainers and trends team. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. Of that, 195,000 acres, worth almost $2 billion when purchased, are owned by 85 Chinese investors, which could be individuals, companies or the government. Longley, Robert. China's low-cost competitive strategy seems to be working. 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. How much of Chinese industry is state-owned? 2023 Center for Strategic & International Studies. 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. When this land changes hands, theyre going to gobble it up, he said of foreign buyers. "How Much U.S. Debt Does China Really Own?" How do I know if my stimulus was deposited? Congress can then increase the federal spending that spurs U.S. economic growth. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. The Chinese government uses U.S. dollars it has on hand to buy Treasurys. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. ThoughtCo. National Association of Realtors. This material may not be published, broadcast, rewritten, Japanese-owned debt doesn't receive nearly as much negative attention as Chinese-owned debt, ostensibly because Japan is seen as a friendlier nation and the Japanese economy hasn't grown as fast as China's year after year. 1 Chinese billionaire and businessman Wang. Show publisher information On the state level, regulations vary. Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions Since this strategy is dependent on exportsover $ 452.58 billion of which went to the U.S. in 2020China needs ever-more renminbi to continue to have a lower currency exchange rate than the U.S. dollar, and thus offer cheaper prices for the products it exports. The value will change whenever China trades Treasury securities or when the prices of those bonds change. Former Vice President Mike Pence speaks during an event. 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. As it is not known exactly how much US land is owned by China. As a Premium user you get access to the detailed source references and background information about this statistic. to incorporate the statistic into your presentation at any time. "Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill. Most countries want their currency values to fall so they can win global currency wars. Treasury securities are freely traded around the world. July 20, 2021 Ryan Morgan U.S. lawmakers are acting with increased concern as Chinese purchasers are buying tens of thousands of acres of U.S. farmland. Sudan has the most debt in the world, accounting for approximately 284% of its gross domestic product (GDP). The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Outward FDI stock share of state-owned and private enterprises in China 2011-2021 FDI outflows from Chinese central enterprises in non-financial sectors 2011-2021 Value of Chinese FDI flows to the . Q3: What regulations are currently in place? Countries with lower currency values export more, since their products cost less when sold in foreign countries. 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. Billions of dollars flow into the U.S. from China every year. Defining Alibaba Alibaba is China's and by some measures, the world's biggest online commerce company. Rep. Grace Meng, D-N.Y. speaks during a news conference on Capitol Hill, on May 27, 2020, in Washington. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." 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. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. Securities. ", The World Bank. By June 2017, the debt had grown to $19.8 trillion and was projected to top $20 trillion by January 2018. How Did the U.S. National Debt Get So Big? But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. Chinas demand for Treasurys helps keep U.S. interest rates low. 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. And Human Rights Watch has written that China is an'existential threat' to human rights." 2 Which Country Owes the Most Money to China? "In 2017, the United States produced zero rare earth minerals. 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. China's economic growth has slowed over the years. How much of the U.S. land does China own? On Friday, Starwood Hotels agreed to be acquired by Anbang, a Chinese insurance company that is rapidly buying up U.S. hotels, for over $13 billion . 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. Mexico has gone from 38% to 42%. 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. All Rights Reserved. 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. You can learn more about the standards we follow in producing accurate, unbiased content in our. Jamie Lutzisaresearchassociatewiththe Global Food Security Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Caitlin Welsh is the director of the CSIS Global Food Security Program. Walmart owns no shares. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. A paid subscription is required for full access. "GDP growth (Annual %) - China. ", 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. A1: USDA records provide the best source of information on foreign-held agricultural land, although they are still incomplete and contain many errors (as explained in A3 below). China holds more than $1 trillion of the U.S. national debt. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. "General Government Gross Debt.". A repurchase agreement is a form of short-term borrowing for dealers in government securities. 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. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. It buys available excess U.S. dollars from the exporters and gives them the required renminbi. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. Given the state of the AFIDA data, it seems it is doing neither. Control of 8,000-plus of American theater screens and other media platforms allows China to project "soft power" and block unflattering depictions of the Chinese government from being presented, both in terms of creative production and mass distribution. Representative Grace Meng expressed concern that the amendment could fuel already rising anti-Asian hate, and the USDA and advocacy groups have pointed out that the USDA does not have the authority to intervene in private land deals. 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. Many large corporations, pension funds, and wealthy individuals are investing in agricultural land in the United States and abroad. Cena's apology made him a darling to Chinese nationalists and a punching bag for U.S. media. You've successfully subscribed to this newsletter! For its part, China owned 191,000 acres worth $1.9 billion as of 2019. All rights reserved. Even at a slow pace, dollar demand would drop. Definition and Impact. That makes Chinese exports cheaper than American-made goods, increasing sales. 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. The government now provides affordable housing by subsidizing commercial housing purchases or by offering low-rent public (social) housing to middle- and low-income families. Mutual Fund and ETF data provided by Refinitiv Lipper. Most states, like Texas and Maine, have no restrictions on foreign ownership of land, contributing to the large amount of farmland that is under foreign control in these states. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . China has steadily accumulated U.S. Treasury securities over the last few decades. "Major Foreign Holders of Treasury Securities.". As soon as this statistic is updated, you will immediately be notified via e-mail. | Photo by Nathan Howard/Getty Images. See Media Page for more interview, contact, and citation details. Owning U.S. Treasury notes helps China's economy grow. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. This is just a small part of the 30 . 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. 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. More than 200 foreign firms mostly Chinese with a combined market capitalization of almost $2 trillion are said to not be meeting this standard; so their stocks are traded, but U.S. investors have limited insight into what is going on internally with the companies. Of the 109 countries that own U.S. agricultural land, China ranks No. The . Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. ", National Association of Realtors, Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 Statista, https://www.statista.com/statistics/611020/total-number-of-properties-purchased-by-chinese-buyers-in-the-us/ (last visited March 04, 2023), Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph], National Association of Realtors, July 18, 2022. Secondly, China needs American markets to buy their exported goods. A5: Land grabbing is more of an immediate threat to food security in other parts of the world than it is in the United States, but it could become a greater threat in the future if more farmland is sold and if foreign investors continue to buy available farmland.