She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. U.S. companies with Chinese shareholders more than doubled their acreage that year, accounting for 102,000 acres of the growth. "A recently passed law in China requires companies toshare data with Chinese communist spy agenciesif requested. How much of the United States does China really own? ", Congress.gov. 10 iconic American companies owned by Chinese investors - CNBC 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. Individuals can buy and sell U.S. debt, as can central banks for countries like China. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. We also reference original research from other reputable publishers where appropriate. Countries with lower currency values export more, since their products cost less when sold in foreign countries. Breaking Down the US Debt and Who Owns It. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. Does paying off all debt increase credit score? Q1: Where and why are foreign entities purchasing farmland in the United States? 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. Mexico has gone from 38% to 42%. What is the best way to liquidate stocks? 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. Quotes displayed in real-time or delayed by at least 15 minutes. The Department of Agriculture requires foreign entities who buy U.S. agricultural land to file a report within 90 days disclosing what they bought. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. As it is not known exactly how much US land is owned by China. Of China's own top 500, 74 percent (370) were state-owned and state stock-holding enterprises, with assets of 27, 370 billion yuan and realizing profit of 266.3 billion yuan, representing 96.96 percent and 84.09 percent respectively of the top 500 corresponding values. The push to drain Chinas influence from the U.S. economy has reached Americas farm country, as congressional lawmakers from both parties are looking at measures to crack down on foreign purchases of prime agricultural real estate. 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 . Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. How much do banks charge to manage a trust? 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). Treasury securities are freely traded around the world. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. Powered and implemented by FactSet Digital Solutions. What country owns the most US soil? - coalitionbrewing.com Former Vice President Mike Pence speaks during an event. Near a 10,000-acre hay farm run by a Saudi subsidiary, local residents say their wells are going dry. "The Chinese have a strong foothold here in the U.S., and Chinese firms have access to what seems like infinite government lending, and because the country's goal of world dominance is ingrained into the minds of their business leaders," explained Paul Murad, president of Nevada-based real estate firm Metroplex. In May 2018, one Chinese yuan was worth about $0.16 U.S. dollar. That's a decline of. "Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022." Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Instead, Dollar Tree is a self-owned company that itself has acquired numerous national and regional competitors over the years, including Family Dollar and Dollar Bill$. 3 1. of all foreign-owned land, cropland accounted for 29%, and pasture and other agricultural land for 22%. That data also shows that the. U.S. Debt to China: How Much Is It, and Why? - The Balance Investopedia does not include all offers available in the marketplace. 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. China also became the world's biggest exporter in 2009. 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. That would hurt China's competitiveness by raising the yuans value relative to the dollar. National Association of Realtors. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. 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. CSIS does not take specific policy positions. US National Debt Clock: How Its Warning Affects You. China does not publish the. Are chinese companies state owned? Ever since the establishment of theBretton Woods Systemin 1944, the value of Chinas currency, the yuan, has been connected or pegged to the value of the U.S. dollar. ThoughtCo, Sep. 2, 2021, thoughtco.com/how-much-debt-does-china-own-3321769. These include white papers, government data, original reporting, and interviews with industry experts. I'm a reporter for Forbes' explainers and trends team. In return, American consumers get cheap Chinese products and incoming investment capital. 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). 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. 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. China must maintain its export-led growth to generate the number of jobs needed to keep its massive population productively engaged. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. The offers that appear in this table are from partnerships from which Investopedia receives compensation. America's farmland is owned by a variety of people and entities, including individuals, companies, and government bodies . Gates is No. ", 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. 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. They hold 50% of total shares through Walton Enterprises LLC and Walton Family Holdings Trust. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. 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. Appliances (technology), IBMP.C. by Jamie Lutz That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Billions of dollars flow into the U.S. from China every year. It receives these dollars from Chinese companies that receive them as payments for their exports. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? 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. All rights reserved. Congress can then increase the federal spending that spurs U.S. economic growth. 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. What US companies are now owned by China? (July 18, 2022). 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. Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. China holds more than $1 trillion of the U.S. national debt. 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. In 2021, Chinese buyers bought 6,300 U.S. properties worth 4.5 billion U.S. dollars. It is responsible for lower interest rates and cheap consumer goods. March 18, 2016, 2:10 PM. 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. 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. How much of America do foreigners really own? - MarketWatch This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. Please create an employee account to be able to mark statistics as favorites. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. 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. The United States owes China approximately $980.8 billion as of May 2022. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Owning U.S. Treasury notes helps China's economy grow. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. 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 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. Times Square billboard endeavors to warn of creeping Chinese influence. 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. The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. Financing for these huge annual IOUs comes from the Department of the Treasury and the Federal Reserve. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. Q4: What federal solutions are being discussed? That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. Conspiracy theorists suggested Gates was buying up millions of acres of U.S. farmland for nefarious reasons, according to the fact-checking service Snopes, with some claiming that Gates owned 80% of all U.S. farmland. The Pentagon released a list of 20 companies that it says are owned or controlled by Communist China's military and operate in the US - including tech giant Huawei, according to a report. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. Even so, large land purchases present various localized concerns in the places where they occur. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. Walmart is founded and owned by the Walton family. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Its also a small percentage of the nearly 900 million acres of total American farmland. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. China also is liberalizing its control of the yuan, also called the "renminbi." U.S. direct investments in China 2000-2021 | Statista That made the yuan more attractive to forex traders in global markets. Some experts insist on adding hundreds of trillions in unfunded future liabilities on the federal government balance sheet. 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. ", United States Department of Treasury. Given the state of the AFIDA data, it seems it is doing neither. List of US Companies Secretly Owned by China: Tesla, Microsoft, GM Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. Alibaba handles more business than any other e-commerce company.