In recent years, Chinese ownership of U.S. farmland has become a contentious issue, intertwining national security concerns with broader economic tensions between the two superpowers. Under the Biden administration, this issue has gained more attention, particularly with the revelation that Chinese-owned land is strategically located near critical U.S. military bases, raising fears of potential espionage or security threats.
Chinese investments in U.S. farmland are part of a broader strategy to diversify financial portfolios and reduce exposure to American assets. Notably, China sold a record $53.3 billion in U.S. Treasury and agency bonds in the first quarter of this year. This move underscores China’s efforts to navigate ongoing trade tensions and prepare for potential aggressive fiscal policies, such as those hinted at by former President Donald Trump, who has suggested imposing a levy exceeding 60% on Chinese goods if re-elected.
Gita Gopinath, the first deputy managing director of the International Monetary Fund, has noted that countries aligned with China have been increasing their gold reserves since 2015, while those aligned with the U.S. have maintained stable levels. This trend points to a strategic financial shift that complements the physical land acquisitions by Chinese entities.
Despite the heightened scrutiny, Chinese ownership of U.S. land remains relatively small, but strategic. As of 2021, China held less than 1% of all foreign-owned land in the U.S., amounting to 383,935 acres. In contrast, Canada owns 12.8 million acres. Almost half of the foreign-owned U.S. land is timber or forest, with 29% for crops and 22% for pasture or other agricultural uses.
However, specific purchases have raised alarms. For example, the Fufeng Group’s acquisition of 370 acres near an Air Force base in North Dakota prompted the Biden administration to propose requiring government approval for foreign land purchases within 100 miles of certain military bases.
Legislative responses have been swift. In 2023, at least 81 bills were introduced across 33 states to restrict Chinese ownership of U.S. land, driven by concerns over national security and food security. One such bill in Florida, banning Chinese nationals from purchasing land or buildings, was blocked by a U.S. appeals court.
Michigan State University agriculture professor David Ortega, in his testimony to the Senate Committee on Agriculture, Nutrition, and Forestry, emphasized that foreign governments typically do not own U.S. land directly. The land is usually owned by various foreign entities, including individuals and corporations.
Despite legislative efforts, a 2023 investigation found that the foreign ownership reporting system is lax, with minimal enforcement, resulting in delayed reporting of some purchases. Yet, there is little evidence to suggest that Chinese land ownership in the U.S. significantly exceeds reported figures.
As the U.S. continues to explore more about the implications of foreign land ownership, the debate highlights the complex intersection of national security, economic strategy, and agricultural policy in an increasingly interconnected world.
