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 . 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$. China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. For its part, China owned 191,000 acres worth $1.9 billion as of 2019. US PHARMACEUTICAL INDUSTRY AIMS TO WREST SOME DRUG PRODUCTION BACK FROM CHINA. The debt-to-GDP ratio measures the proportion of a country's national debt to its gross domestic product. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. 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.. 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. Owning U.S. Treasury notes helps China's economy grow. "Under China's Communist Party dictatorship, private companies are forced to bend to the government's will," the report states. 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. The . A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. House lawmakers recently advanced legislation to that effect, warning that Chinas presence in the American food system poses a national security risk. Furthermore, policymakers have signaled no efforts to improve state- or national-level information on foreign purchases of U.S. farmland, leaving the true picture obscured. Other foreign holders included oil-exporting countries and Caribbean banking centers. Japan held 1.24 trillion U.S. dollars. On the state level, regulations vary. China has the second-greatest amount of U.S. debt held by a foreign country. 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. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. 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. Yes, this means that the government actually borrows money from itself to fund these and other entitlement programs. Its research is nonpartisan and nonproprietary. Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. Former Vice President Mike Pence speaks during an event. Market data provided by Factset. It receives these dollars from Chinese companies that receive them as payments for their exports. 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. China's economy would suffer along with everyone else's. https://www.thoughtco.com/how-much-debt-does-china-own-3321769 (accessed March 4, 2023). Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. 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. 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. In 2019, Chinese nationals purchased 6,300 properties in the United States, generating about 4.5 billion U.S. dollars in sales. 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. The quick answer is that as of January 2018, the Chinese owned $1.17 trillion of U.S. debt or about 19% of the total $6.26 trillion in Treasury bills, notes, and bonds held by foreign countries. As soon as this statistic is updated, you will immediately be notified via e-mail. 41 on The Land Reports 2022 list of Americans who own the most land. National Association of Realtors. Other top investors are American-based companies, including Vanguard Group Inc. Apple Inc USA is an American Company that was founded in Cupertino, California. Business Solutions including all features. 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. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. Greed Is Good or Is It? ", Harvard Business Review. 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. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. China is taking steps to make its currency, the yuan, transition to a global currency. While some states have strict laws in place, others are more open to foreign investments. All rights reserved. What's the Difference? Q4: What federal solutions are being discussed? Data cover both foreign-owned (29.1 million acres) and U.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 . Are you interested in testing our business solutions? Amanda Jackson has expertise in personal finance, investing, and social services. It is responsible for lower interest rates and cheap consumer goods. 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? That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. ", Congress.gov. So, Lowes operates independently of Walmart. The resulting loss of export business would lead to a major unemployment crisis in China. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. Mutual Fund and ETF data provided by Refinitiv Lipper. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. This is just a small part of the 30 . And if you measure it by gross domestic product (GDP) and consider purchasing power parity (PPP), China is seen as the worlds largest economy. What US companies are now owned by China? Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. "Debt Position and Activity Report, June 2022," Page 1. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities. The bill, which is yet to move through the House, would necessitate that "an issuer must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the issuer has retained a foreign public accounting firm not subject to inspection by the board. A few states, including top agricultural centers like Iowa and Minnesota, already have varying restrictions on foreign ownership of their farmland. 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. I'm a reporter for Forbes' explainers and trends team. 04 Mar 2023 03:14:21 China's economic growth has slowed over the years. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions. That's when the U.S. Department of the Treasury changed how it measures the debt. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. Breaking Down the US Debt and Who Owns It. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. In a vicious cycle, they sell the U.S. dollars they receive through exports to get renminbi, which increases the supply of U.S. dollars and raises the demand for renminbi, to the point that the renminbi ranked as the eighth most traded currency in the world as of 2019. The amount of farmland owned by Chinese investors has remained relatively steady in recent years, according to the AFIDA data. As of 2019, a total of 191,000 acres of American land were owned by China. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. United States Treasury Fiscal Data. 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. This is the second reason the Chinese want Treasurys; they are essentially redeemable in dollars. That's a large portion of the $7.6 trillion in Treasury bills, notes, and bonds held by foreign countries. China holds the number two position, holding $980.8 billion of U.S. Treasurys3.2% of the total U.S. debt. The answer to that question seems to be a constant source of controversy among Americas political leaders and media commentators. 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. Legal Statement. Still, thats less than farmland owned by people from other nations like Canada and European countries, which account for millions of acres each. On the other hand, if China were to call in its debt, the demand for the dollar could plummet. Nations borrowing from each other may be as old as the concept of money. That changed with the USMCA. The total has grown by an average 2.3 million acres per year since 2015, according to USDA data. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. (2022). Dalian Wanda purchased a majority stake in AMC for $2.6 billion, making AMC the largest theater operator at the time, according to a report from Reuters. For example, Chinese pharmaceutical companies supply 70 percent of the world's acetaminophen, commonly used in Tylenol. 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. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. In 2019, it grew at 6.1%, an even more sustainable rate. China does not publish the figures on its international lending. The hardware brand is a publicly-traded company that does not have a majority shareholder. 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. It's politically popular to say that the Chinese "own the United States" because they are such a huge creditor.
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