China's state-directed industrial policy has outmaneuvered America's laissez-faire approach to securing access around the world to a metal that's taking on growing economic and strategic . As a major function of its monetary policy, China's central bank, the Peoples Bank of China (PBOC), actively works to prevent this imbalance between the U.S. dollar and renminbi in local markets. Its also a small percentage of the nearly 900 million acres of total American farmland. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. 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. It is important to note that foreign entities are not the only ones aggressively buying up U.S. farmland. The deal meant that WH Group now owns the largest pork producer in the United States as well as over 146,000 acres of Missouri farmland. Artificially suppressing the yuan has made it difficult for a growing Chinese middle class; so, exports are needed to keep businesses running. Smithfield is vertically integrated and owns all aspects of its supply chain, meaning that WH Group now controls a significant portion of U.S. pork production and revenue in addition to farmland. Longley, Robert. 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. This includes everyone from retirees who purchase individual U.S. Treasurys to the Chinese government. U.S . "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. Newt says China will 'dominate world' if tech theft isn't stopped, 'it's a matter of life and death', share data with Chinese communist spy agencies. 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, on the other hand, accounted for more than 80 percent of the world's supply," the report stated. 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. From 2016, the estimates include only residential transactions. The Netherlands is the second largest foreign owner with 4.6 million acres. 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. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Missouri had formerly banned all foreign ownership of agricultural land in the state, but one week before Shuanghui took over Smithfield, that rule changed to allow foreign entities to own up to 1 percent of the states farmland. That made the yuan more attractive to forex traders in global markets. 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. China is the second-largest holder of the debt, even after it reduced its holdings, which it has been doing since 2011. 2023 FOX News Network, LLC. Chinese-Owned Farmland in U.S. Comes Under Scrutiny - Newsweek Christmas in Mainland China is not a public holiday and is not related to religion at all. How much do banks charge to manage a trust? 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. Bill Gates owns almost as much U.S. agricultural land as China at 248,000 acres, according to The Land Report. This Treasury-led change makes it difficult to make long-term comparisons. Q2: What threats do foreign acquisitions of U.S. farmland pose? Its research is nonpartisan and nonproprietary. 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 controlof potentially life-saving medicine. "Major Foreign Holders of Treasury Securities [2000-2020]. These include: AMC Entertainment (entertainment), Cirrus Wind Energy (energy), Complete Genomics (health care), First International Oil (energy), G.E. 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. If China ever did call in its debt, it slowly would begin selling off its Treasury holdings. Access to this and all other statistics on 80,000 topics from, Show sources information ", International Monetary Fund. 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. WH Group is a publicly-traded company with shareholders around the world. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt. The buying gorge went from April 2021 to March 2022 and . The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. Walmart owns no shares. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. The vast majority of this land is farmland, but the Chinese government and investors also own other kinds of real estate. Why China Buys U.S. Debt With Treasury Bonds - Investopedia Chinese firms have bought AMC Entertainment, Legendary Entertainment, and other media companies. 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. How much of the U.S. land does China own? 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. China also is liberalizing its control of the yuan, also called the "renminbi." "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. 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. It amounted to about 192,000 of the. 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. China's low-cost competitive strategy seems to be working. American Companies You Didn't Know Were Owned By Chinese Investors Haier bought GE for $5.4 billion, a recording breaking sum at that time. Definition and Analysis, What Is National Debt and Where It Fits Within the Economy, Alexander Hamilton and the National Economy, The History of US Government Financial Bailouts, What Was the Open Door Policy in China? It receives these dollars from Chinese companies that receive them as payments for their exports. Consequences of Owing Debt to the Chinese, Government Bond: What It Is, Types, Pros and Cons, Repurchase Agreement (Repo): Definition, Examples, and Risks, U.S. Debt Ceiling: Definition, History, Pros, Cons, Clashes, Debt-to-GDP Ratio: Formula and What It Can Tell You, Major Foreign Holders of Treasury Securities, Debt Position and Activity Report, June 2017, Debt Position and Activity Report, June 2022, Your Pension Is a Lie: There's $210 Trillion of Liabilities Our Government Can't Fulfill, Frequently Asked Questions About the Public Debt, China's Gold Market: Progress and Prospects, Federal Debt Held by Federal Reserve Banks. 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. "Frequently Asked Questions About the Public Debt. 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. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. Powered and implemented by FactSet Digital Solutions. 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. "Debt Position and Activity Report, June 2017," Page 1. Other foreign holders included oil-exporting countries and Caribbean banking centers. Treasury securities are freely traded around the world. 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). The House passed the agriculture appropriations bill on July 29, raising questions about how it will be enforced if it becomes law. "Debt Position and Activity Report, June 2022," Page 1. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar. Legal Statement. Much of the rest of the debt is owned by individual investors, corporations, and other public entities. China's economy would suffer along with everyone else's. David Schlessinger and I founded Five Below 16 years ago with a promise to build an amazing store for teens and pre-teens that offers trend-right, high-quality merchandise all at $5 or less, said Tom Vellios . U.S. Debt to China: How Much Is It, and Why? - The Balance The . 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). Amazon founder Jeff Bezos comes in at No. by Jamie Lutz Contractionary Monetary Policy. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. Her modest, two-story white farmhouse has . Securities. Please create an employee account to be able to mark statistics as favorites. China's position as the largest foreign holder of U.S. debt gives it some political leverage. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. It allows the U.S. Treasury to borrow more at low rates. According to the data, the value of foreign-owned American assets climbed to $32.5 trillion in the second quarter, while total foreign assets held by.
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