Register in seconds and access exclusive features. 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. Six states Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma currently ban foreign ownership of farmland. Coronavirus-related sales slumps and supply chain disruption, as well as rising production costs, have also hastened the exodus. Citing staff shortages, the Department of Agriculture didnt penalize foreign parties for violating reporting rules from 2015 to 2018, prompting 28 lawmakers to criticize the departments complete lack of accountability and oversight Monday in a letter obtained by the Wall Street Journal. Is it better to pay off credit card or pay down? Maxwell said that poses a big risk with an older generation of farmers set to exit the industry. The . This helps inflate the value of the dollar. Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. 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. 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. 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.. 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 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. Treasury securities are freely traded around the world. [Online]. Legal Statement. Its research is nonpartisan and nonproprietary. The company was founded in Smithfield, Virginia, in 1936 and was acquired by Hong Kong-based WH Group in 2013. Foreign debt provides the opportunity for countries to secure the financing they ordinarily wouldn't have access to and to stimulate their economy. Its allowed the yuan to trade in a wider trading range around a basket of currencies that include the dollar. This statistic shows the total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2021. 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. WH Groups shareholders include many large U.S.-based financial institutions.". Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado. (ChinaOwnsUs campaign). 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. Agricultural Land. 04 Mar 2023 03:14:21 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. It is responsible for lower interest rates and cheap consumer goods. Sign up to receive The Evening, a daily brief on the news, events, and people shaping the world of international affairs. 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. But Meng, Newhouse and committee leaders indicated they would find a solution as the legislation winds through Congress. Now China owns the airspace and Australian citizens can't land in their own country without approval from the Chinese government. Get full access to all features within our Business Solutions. 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. China needs this growth to raise its low standard of living. However, there are some countriessuch as Niger, Cambodia, and Laoswhose debt to China is more than 20% of their GDP. (2022). Across the country, the 2013 purchase of Smithfield Foods by the Chinese firm Shuanghui, now called WH Group, received national attention and escalated concerns about Chinese intervention in U.S. food systems. The U.S. farmer population is aging, with an average age of 57.5 in 2017, up from 55 in 2012. How much do banks charge to manage a trust? The economy of China is driven by manufacturing and exporting. 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. [U]nder Xi Jinping, the Communist party has returned to being the ultimate authority in business," writes The Guardian. It would perpetuate already rising anti-Asian hate, Meng warned at the markup. Of that, 195,000 acres, worth almost $2 billion when purchased, are. Anyone anywhere can purchase shares of WH Group on the Hong Kong Stock Exchange. (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. They use different business structures to further conceal it.. Center for Strategic and International Studies "He firmly believes that China, before the year [20]30, '35, is going to own America because autocracies can make quick decisions." The president did not elaborate on what was meant by "own. So, Lowes operates independently of Walmart. Countries Who Own The Most Acres U.S. 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. "The number is very difficult to gauge correctly due to complicated ownership structures that the Chinese sometimes employ. 2 Which Country Owes the Most Money to China? 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. In, National Association of Realtors. It's more of a novelty day like Valentine's Day, rather than a religious celebration. In addition, the U.S. Treasury Department has a proven track record of being able to find new creditors very quickly when needed. Indeed, there has been a tenfold expansion of Chinese ownership of farmland in the United States in less than a decade. "How Much Money Does the World Owe China? The source adds the following information: "estimates from 2010 thru 2015 include some commercial transactions. As a presidential candidate in 2019, Warren said she would support a national version of Iowas law along with safeguards against foreign investors using fake American buyers to circumvent the rules. "GDP Growth (Annual %) - China. SWINE FLU STRAIN WITH 'HUMAN PANDEMIC POTENTIAL' FOUND IN MORE CHINESE PIGS, SCIENTISTS SAY. Subsequently, China and other international players would be obligated to accede to an audit that can be reviewed by the nonprofit Public Company Accounting Oversight Board, which oversees audits of all U.S. companies that endeavor to raise money in public markets. And key Senate lawmakers have already shown interest in efforts to keep American farms in American hands. In 2019, 49 percent of reported foreign-held acreage in the United States was forest land, while 25 percent was crop land, 24 percent was for pasture and other agricultural uses, and 2 percent was for non-agricultural uses (such as homesteads and roads). Bipartisan pressure is building to stop foreign nationals from purchasing American farm operations and receiving taxpayer subsidies. Understanding the actual extent and impact of Americas debt to China requires a closer look at these massive amounts of money. Chinas demand for Treasurys helps keep U.S. interest rates low. 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 data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013. Arizona, for instance, has no rules on groundwater pumping as long as it is for a beneficial use, which includes agriculture even if the products are shipped elsewhere. However, the US government estimates that Chinese-owned entities own approximately 7,000 acres of land in the US, which is a small fraction of the 2. . Quote and Meaning, What Was the Eisenhower Doctrine? What is the highest credit limit for Chase Sapphire? Please create an employee account to be able to mark statistics as favorites. ", The World Bank. As soon as this statistic is updated, you will immediately be notified via e-mail. Since 2016, a company owned by Xinjiang-based real estate tycoon Sun Guangxin had spent an estimated $110 million buying up land in Texas' Val Verde County. She is a library professional, transcriptionist, editor, and fact-checker. A dollar-pegged yuan helps keep down the cost of Chinese exports, which the Chinese government believes makes it stronger in international markets. But its the trend of increasing purchases and the buyers potential connections to the Chinese government that have lawmakers spooked. This is partly because Japan is seen as a much friendlier nation and because Japans economy has been growing more slowly than Chinas over the last several years. China holds more than $1 trillion of the U.S. national debt. Its economy grew more than 10% for the three decades before the 2008 recession. Weak Oversight of Foreign Farmland Deals Sparks Concern Amid China Purchases (WSJ), North Dakota Turns Against Chinese Corn Mill Project (WSJ). 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. The Senate Bill is being reviewed by the Committee on Banking, Housing and Urban Affairs. That sounds like a lot of moneybecause it isbut it is actually a little less than the $1.24 trillion China-owned in 2011. 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. ", Harvard Business Review. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. Although Walmart does own an impressive number of brands both in the US and beyond, the company does not own Lowes. CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE, Times Square billboard endeavors to warn of creeping Chinese influence. 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. A2: On a large scale, these acquisitions do not represent a substantial enough portion of food production in the United States to threaten national food security. "China's Currency Policy," Page 1. China and investors tied to the CCP own just shy of 200,000 acres of various types of land in the United States. Owning U.S. Treasury notes helps China's economy grow. 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. ", Congress.gov. Market data provided by Factset. Other foreign holders included oil-exporting countries and Caribbean banking centers. How Did the U.S. National Debt Get So Big? While some states have strict laws in place, others are more open to foreign investments. The government itself actually holds just under one-third, about $5 trillion, of the $19.8 trillion government debt in the form of trust funds dedicated to legislatively-mandated programs like Social Security, Medicare, and Medicaid and veterans benefits. In return, American consumers get cheap Chinese products and incoming investment capital. National Association of Realtors. 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. Total number of residential properties purchased by Chinese buyers in the United States from 2010 to 2022 [Graph]. China's economic growth has slowed over the years. Q1: Where and why are foreign entities purchasing farmland in the United States? "Report on Foreign Portfolio Holdings of U.S. Includes buyers from the People's Republic of China, Hong Kong and Taiwan. Every year since 2010, China has held more than $1 trillion in U.S. debt. Dollar-pegging adds stability to the yuan since the dollar is still seen as one of the safest currencies in the world. At the same time, it relies on the private commercial housing market to meet the needs of higher-income groups. What US companies are now owned by China? For example, in water-scarce regions like the Southwest, outside use of freshwater resources can affect water availability for local farms and communities. The value will change whenever China trades Treasury securities or when the prices of those bonds change. 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 . China also became the world's biggest exporter in 2009. Sean Rayford/Getty Images, America cannot allow China to control our food supply, Pence said Wednesday during a speech at the conservative Heritage Foundation, urging President Joe Biden and Congress to end all farm subsidies for land owned by foreign nationals.. The rest of the $29 trillion national debt is owned by either people in the U.S. or by the U.S. government itself. The debt ceiling is a limit that Congress imposes on the amount that the federal government can owe. I'm a reporter for Forbes' explainers and trends team. China held 1.1 trillion U.S. dollars in U.S. securities. 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. According to the U.S. Census Bureau, the U.S. has been suffering from a significant trade deficit with China since 1985, meaning that the U.S. buys more goods and services from China than China buys from the U.S. Chinese exporters receive U.S. dollars for their goods sold to the U.S. Use Ask Statista Research Service. In 2019, it grew at 6.1%, an even more sustainable rate. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. 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). Chart. Her modest, two-story white farmhouse has . Photo: GUILLAUME SOUVANT/AFP via Getty Images, Critical Questions Its also a small percentage of the nearly 900 million acres of total American farmland. USDA reported in 2018 that Chinas agricultural investments in other nations had grown more than tenfold since 2009. Those seeking more restrictions say USDAs numbers actually understate the amount of foreign control over American ag operations. ", TreasuryDirect. "Frequently Asked Questions About the Public Debt. Agricultural Land: Facts, Figures, and an Assessment of Real Threats, Brzezinski Chair in Global Security and Geostrategy, Diversity and Leadership in International Affairs Project, Energy Security and Climate Change Program, Media Relations Manager, External Relations. 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? 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. Of the total 7.03 trillion held by foreign countries, Japan and Mainland China held the greatest portions.
(codeandqa.com)
