With recent news that lawmakers are "freaking out" over the record rate that the Chinese are buying up American companies, including the Chicago Stock Exchange, we take a look at news from 2009 to present day and have to ask if America has become the United States of China?
With China being the biggest holder of America's debt we are reminded of a 2009 Washington Post report where China was said to be "saber-rattling" when China demanded the Obama government offer them a "guarantee the safety" of its $1 trillion (at that time) in America bonds.
Specifically noted in that article was that "Secretary of State Hillary Rodham Clinton urged the Chinese to keep buying U.S. bonds." What wasn't noted in that article was the nature of the "guarantee" China was actually given, but subsequent reports since 2009 show that the Chinese have acquired a significant amount of land, businesses and real estate within the U.S., but the following quote from that piece gives us a clue of what was to come.
"The power that China now has is that its actions are seen as a leading indicator of the confidence that foreign investors will have in the ability of the U.S. government to pay the debt," said Eswar Prasad, senior fellow at the Brookings Institution. "These comments are saber-rattling in the sense that they are using that leverage to tell the U.S. to back off on currency policy and trade policy."
The U.S. trade deficit with China was $365.7 billion in 2015 This is a new record, up slightly from last year's record of $343 billion.
The trade deficit exists because U.S. exports to China were only $116.2 billion while imports from China hit a new record of $481.9 billion. The deficit keeps growing because imports are rising faster than exports.
For years we have been seeing reports of how much American real estate the Chinese have been buying, from FORBES stating in 2013 "by most estimates, they are snatching up high end real estate in Los Angeles, San Francisco and New York, in particular."
Across the country, however, Chinese purchasers bought over $10 billion of U.S. real estate in 2011 and account for 9% of foreign U.S. house buyers, second only to Canadians, according to Juwai.com, a Chinese real estate website geared towards international home shoppers.
By comparison, and across the 50 states, the Chinese buy more U.S. homes than Indians, Mexicans or the British. While Mexicans are big in California and all across the south, China still ranks within the top five foreign nationalities buying real estate in 44 states. China, for instance, is ahead of Mexican buyers throughout the more costly Northeast. They already are the number one foreign buyer group in states like West Virginia and Massachusetts. They are number two in New York, Maine, Indiana, Missouri, Colorado, Wyoming and Hawaii.
By 2014, Zero Hedge points out that China is on the way to becoming "the dominant land owner in the entire country." Noted in that piece is that not only is China buying up large tracts of land but in some cases the land is being given away to them for free as an enticement to build factories!
Gov. Robert Bentley said Friday that he will announce an economic development project in Thomasville, Ala., Monday morning. That project is likely a copper tube plant to be built by Golden Dragon Precise Copper Tube Group. A legal notice published Thursday indicates that the city of Thomasville and others intend to give land and other incentives to GD Copper USA, which state corporation records identify as a Florida-based subsidiary of Golden Dragon.
Li Changjie, male, Han nationality, was born in the Yuanyang County, Henan Province in 1946. He graduated from the physics department of Zhengzhou University in July, 1970, is a member of Communist Party of China, professor level senior engineer, winner of the state council special allowance. He is the president and party secretary of the Golden Dragon Precise Copper Tube Group Inc., director of Chinese Academy of Sciences Precise Copper Engineering Research Center; He is also the council member of International Copper Association (ICA), director of International Wrought Copper Council (IWCC), executive member of China Refrigeration and Air-conditionning Association , vice chairman of China Non-Ferrous Metals Industry Association, member of CPC Xinxiang Committee, representative of the seventh, eighth, ninth party congress of CPC Henan province, representative of the tenth, eleventh and twelfth NPC; He also won the honorary title of National Model Worker, May 1st Labor Medal, Outstanding Party Member of Henan Province, Model Worker of Henan Province and Excellent Private Entrepreneur of Henan Province, etc.
See just a few examples of China's purchase of U.S. real-estate and businesses here and here. Just do a search on any search engine for China land purchases in the U.S., or businesses, or real-estate, and you will be amazed at how much of the U.S. they own already.
Last year, China accounted for $12.8 billion of the $68.2 billion in foreign real estate transactions, according to the National Association of Realtors. For the last 12 months ending in March, China accounted for $22 billion of what is now a $92 billion market. Moreover, Chinese purchasing power moved them from a 19% share of the market last year, to a 24% share so far this year.
Thanks to all the money the Chinese are spending on penthouse suites in midtown Manhattan, the median price of a home purchased by the Chinese is greater than all the other top international markets. On average, China home buyers dished out over $523,000 for a home, more than the U.K. ($350,000), India ($342,000), Canada ($212,000) and Mexico ($141,000).
In New York’s super high-luxury housing market, the Chinese have surpassed the Russian oligarchs. For new properties costing over $20 million, China is the main foreign customer these days, says Martin Purcell, a broker for Rutenberg Realty.
China has outsmarted America - They own a significant portion of our debt, they took all that money we printed out of thin air, via the trade deficit, then they used our own money to buy up the country.... as the quote via SQ states at the top of the article, "The Chinese have defeated the United States in the game of Monopoly.