Business
EXCLUSIVE: US Is Failing To Counter Threat Of Chinese Land Ownership, Report Finds
From the Daily Caller News Foundation
The United States government is not appropriately addressing the threat posed by growing Chinese ownership of American land, according to a report released by the Heritage Foundation Thursday.
The federal government is woefully ill-equipped to track Chinese-owned real estate in the country, despite the serious threat these Chinese Communist Party-affiliated entities can pose to critical U.S. infrastructure, according to the report. The report calls on federal and state leaders to take action, such as increasing transparency and conducting more critical reviews of land purchases.
“China’s ownership of American land is nontransparent and unscrutinized, and the federal government has failed to address potential threats even as Chinese ownership of U.S. real estate increases,” Bryan Burack, a senior policy advisor for the Heritage Foundation and author of the study, told the Daily Caller News Foundation.
The federal government lacks an adequate system in place to broadly monitor Chinese ownership of U.S. real estate, due to ownership of real estate being overseen by state and local governments, the report notes. For this reason, the U.S. government has no clear picture on China’s total land holdings in the country.
“The United States should be watching land and real estate transactions from our top adversary, not ignoring them,” Burack said.
The Daily Caller News Foundation has reported extensively on Chinese companies’ land purchases in the U.S. For instance, the parent company of battery maker Gotion, which plans to build factories in Michigan and Illinois, participated in Chinese Communist Party (CCP) programs that acquire technology for China’s military, the DCNF reported. The DCNF also exposed the CCP ties of companies attempting to set up shop near military bases in Kansas.
Smithfield Foods, America’s largest pork producer, is owned by a Chinese firm and exported massive quantities of pork to its China-based “sister company” as that company stockpiled food for the Chinese military, the DCNF exclusively reported.
Chinese entities have spent over $100 billion acquiring American companies since 2010, with many of these businesses owning real estate across the country, according to the report. In 2020, the National Association of Realtors confirmed that China was the top foreign buyer of American real estate.
The Agricultural Foreign Investment Disclosure Act (AFIDA) does give some insight into the amount of agricultural land being purchased by foreign entities. The latest AFIDA report indicates that Chinese investors own a relatively small fraction of the country’s privately held agricultural land, holding only 346,915 acres, or roughly one percent, of foreign-held acres of private land, as of December 31, 2022.
However, Chinese-owned agricultural acreage grew over five-fold between 2011 and 2021, the report found.
This trend is worrisome because the Chinese government has made numerous, well-publicized attempts to gain access to key locations within the U.S.
Examples the report highlights include China’s attempt to equip a pagoda with signal collection technology and gift it in Washington, D.C., an attempt by a Chinese billionaire to build a wind development project near Laughlin Air Force Base in Val Verde County, Texas, and an attempt by a Chinese agribusiness to develop a cornmeal project just 12 miles from Grand Forks Air Base.
“In both the Val Verde and Grand Forks cases, existing federal government mechanisms proved manifestly unable to contend with threats that were clearly perceivable to the Americans living nearby — as well as, seemingly, to the Defense Department itself,” the report says. “Frighteningly, China’s threat to U.S. military infrastructure only continues to evolve.”
The Heritage Foundation recommended the federal government and state lawmakers enact laws to better equip the country for this growing threat.
“The threat posed by Chinese entities purchasing real estate in the U.S. and using it for malign purposes is real,” the report concludes. “As China presents the United States’ greatest national security threat and has a history of particular threats to real estate and agricultural land, measures to counter those threats must be a priority.”
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Alberta
Alberta fiscal update: second quarter is outstanding, challenges ahead
Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.
Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.
The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.
Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.
“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”
Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:
- $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
- $125 million to address enrollment growth pressures in Alberta schools.
- $847 million for disaster and emergency assistance, including:
- $647 million to fight the Jasper wildfires
- $163 million for the Wildfire Disaster Recovery Program
- $5 million to support the municipality of Jasper (half to help with tourism recovery)
- $12 million to match donations to the Canadian Red Cross
- $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
- $240 million more for Seniors, Community and Social Services to support social support programs.
Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.
After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.
Revenue
Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:
- $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
- $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.
Expense
Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.
Surplus cash
After calculations and adjustments, $2.9 billion in surplus cash is forecast.
- $1.4 billion or half will pay debt coming due.
- The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.
Contingency
Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.
Alberta Heritage Savings Trust Fund
The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.
- The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.
Debt
Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.
- Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.
Related information
-
conflict1 day ago
US and UK authorize missile strikes into Russia, but are we really in danger of World War III?
-
Business2 days ago
Carbon tax bureaucracy costs taxpayers $800 million
-
Alberta1 day ago
Early Success: 33 Nurse Practitioners already working independently across Alberta
-
Brownstone Institute2 days ago
The Most Devastating Report So Far
-
Alberta2 days ago
Province considering new Red Deer River reservoir east of Red Deer
-
John Stossel2 days ago
Green Energy Needs Minerals, Yet America Blocks New Mines
-
Aristotle Foundation1 day ago
Toronto cancels history, again: The irony and injustice of renaming Yonge-Dundas Square to Sankofa Square
-
armed forces22 hours ago
Judge dismisses Canadian military personnel’s lawsuit against COVID shot mandate