The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. These foreign interests are pretty smart. Rep. Grace Meng (D-N.Y.) said that if the amendment was about national security, buyers from other countries should also face similar restrictions. Get full access to all features within our Business Solutions. I would suggest that we sit down and we work through it so we can accomplish our objective, but do it in a way that is sensitive to all those who might be somewhat offended by the approach.. 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 greatest share is in Texas, with over 4.4 million acres, followed by Maine (3.3 million acres) and Alabama (1.8 million acres). 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. Foreign Purchases of U.S. Agricultural Land: Facts, Figures, and an A Chinese firm has also purchased Smithfield, the world's largest pork processor and hog producer. Christmas in Mainland China is not a public holiday and is not related to religion at all. 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. It's more of a novelty day like Valentine's Day, rather than a religious celebration. This amount is subject to market fluctuations. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. 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. According to the International Monetary Fund (IMF), the only nation with no national debt is Macao SAR. China has become one of the largest economies in the world. In return, American consumers get cheap Chinese products and incoming investment capital. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. China is buying billions in US farmland and lawmakers are scrambling to She is a library professional, transcriptionist, editor, and fact-checker. Land grabbingwhen a government, company, or other entity purchases large swathes of land in another countrycan affect local land rights and agricultural production, sometimes putting local food security at risk. Because of varying maturities dates, China would be unable to call in all its Treasury holdings at once. ", The World Bank. 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. Individuals can buy and sell U.S. debt, as can central banks for countries like China. Of the $30.5 trillion in government debts, more than $6 trillion is owned by the federal government in trust funds. Even at a slow pace, dollar demand would drop. Show publisher information Chinese agricultural land ownership only increased about 550 acres from 2015 to 2019. How much of the U.S. land does China own? - FinanceBand.com While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. "Total Number of Residential Properties Purchased by Chinese Buyers in The United States from 2010 to 2022. There are two main economic reasons Chinese lenders bought up so many U.S. Treasury securities. China is buying up American farms. Washington wants to crack - POLITICO That move followed a contentious debate over the potential consequences for Asian Americans if Congress adopted a provision aimed squarely at China. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Owning U.S. Treasury notes helps China's economy grow. Chinas demand for Treasurys helps keep U.S. interest rates low. Currently, you are using a shared account. Disney is in no way owned by Chinese interests in terms of shareholders. The United States currently produces more than enough food per capita, even after adjusting for food waste. The Netherlands is the second largest foreign owner with 4.6 million acres. This intervention by the PBOC results in scarcity of U.S. dollars, which inflates their exchange rates. China holdings of U.S. debt fall below $1 trillion for the first time "China's Gold Market: Progress and Prospects," Page 2. At the same time, American consumers are assured of a steady flow of relatively inexpensive Chinese products and services. Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. 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. ", 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. National Association of Realtors. U.S. Department of the Treasury. 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. 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. This material may not be published, broadcast, rewritten, But you'll still see the malls and streets of the big cities filled with Christmas decorations, fir trees, Santa Claus and carols. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. While some states have strict laws in place, others are more open to foreign investments. By artificially keeping the value of the yuan down, the government reduces the buying power of the Chinese middle class, thus making the sale of exports vital keeping the countrys economy moving. Powered and implemented by FactSet Digital Solutions. "GDP Growth (Annual %) - Japan, China.". What is the best way to liquidate stocks? Washington, DC 20036. However, the concept of foreign debt carries a negative connotation, especially when it concerns large amounts owed to nations embroiled in controversy. 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.. So, Lowes operates independently of Walmart. Who owns America? Hint: It's not China - CNN Each bill, bond, and note represents ownership in U.S. debt. As of 2019, a total of 191,000 acres of American land were owned by China. Citing the nonpartisan economic think-tank Paulson Institute, the American Security Institutereport underscores that "Chinese firms and investors own a controlling majority in nearly 2,400 U.S. 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. Total number of residential properties bought by Chinese buyers in the U.S. 2010-21. WH Group is a publicly-traded company with shareholders around the world. That would hurt China's competitiveness by raising the yuans value relative to the dollar. Fact Check: Does the Chinese Communist Party Own AMC - Newsweek 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. 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. In 2017, the United States imported $4.6 billion in agricultural goods from China, which is also responsible for much of the global supply of soy and pea proteins that are found in nutritional supplements and synthetic meats. For these reasons, we'll likely see China remain one of the world's largest holders of U.S. national debt. 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. Japancommands the top spot among foreign creditors with $1.2 trillion4% of total U.S. debtowed by the U.S. government. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. China could start this process only after it further expanded its exports to other Asian countries and increased domestic demand. The Global Food Security Program would also like to thank Aliza Lauter for her research contributions to this publication. Use Ask Statista Research Service. 10 iconic American companies owned by Chinese investors - CNBC 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. 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. 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. The USDA reports that the changes in pasture and crop land holdings since 2009 were mostly due to foreign-owned wind companies signing or terminating long-term leases. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor. This Treasury-led change makes it difficult to make long-term comparisons. U.S. Debt to China: How Much Is It, and Why? - The Balance "Bretton Woods-GATT, 19411947.". Foreign investors by the end of 2019 held an interest in more than 35 million acres an area bigger than New York State. Discover the current debt ceiling and its economic impact. We are new in this process, said Rep. Sanford Bishop (D-Ga.), chair of the agriculture appropriations subcommittee. 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. 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. Demand for dollar-denominated bonds raises the dollar value compared to that of the yuan. Chinese billionaire and businessman Wang. The largest holder of U.S. debt is the United States government. Q4: What federal solutions are being discussed? Stephen Gandel. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. TUCKER CARLSON, FOX NEWS: So how would you define the Biden administration? In 2019, it grew at 6.1%, an even more sustainable rate. 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. United States Treasury Fiscal Data. 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. Securities. And its findings may be surprising to some. The US National Debt and How It Affects You. The reality is very different than the rhetoric. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. 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. On the state level, regulations vary. Nord Stream explosions hard to cover up - asiatimes.com 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. Its economy grew more than 10% for the three decades before the 2008 recession. Former Vice President Mike Pence speaks during an event. Please create an employee account to be able to mark statistics as favorites. 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. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. 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. "Major Foreign Holders of Treasury Securities. 41 on The Land Reports 2022 list of Americans who own the most land. China's Large Position in U.S. Treasuries. 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.
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