The Chinese Are Buying Large Chunks Of Land Across America (And Zillow Is Now Enabling It)

Tyler Durden's picture

Has the United States ever experienced a time when a foreign nation has attempted to buy up so much of our land all at once? As Michael Snyder details below, it appears the Chinese are on a real estate buying spree all over America as they are now the dominat 'buyers' of investment green cards. This is occurring as private equity buyers and hedge funds exit the buy-to-rent business en masse and are, as Mike Krieger explains, are desperate to pitch American property to anyone willing to keep Housing Bubble 2.0 inflated... it seems Zillow is more than happy to enable that, "Zillow agreed to make its U.S. property listings available to Chinese consumers through a partnership with a Beijing-based website."


As The American Dream's Michael Snyder explains, the Chinese are on a real estate buying spree all over America.  In fact, in some cases large chunks of land are actually being given to them.  Yes, you read that correctly.  China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people.  Do we really want a foreign superpower to physically own so much of our territory?

There are some that are playing down this threat by making a distinction between the Chinese government and Chinese corporations, but things work differently over in China than they do here.  In China, the government is involved in everything.  In fact, 43 percent of all corporate profits in China are produced by companies that the Chinese government controls.  And all of the rest of the companies are very careful to follow the lead and direction of the Chinese government.

That is why what is going on in places such as Thomasville, Alabama is so alarming.  Small communities such as Thomasville are so starved for jobs that they are willing to give land away for free to Chinese companies in order to entice them 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.

And in this particular case, we are not just talking about a small plot of land.  We are talking about a 40 acre chunk of land worth 1.5 million dollars…

The legal notice indicated the city plans to give Golden Dragon a 40-acre site. Thomasville Mayor Sheldon Day has said that land is in a city industrial park south of Thomasville High School. It includes a $1.5 million, 50,000-square-foot building that the city constructed in 2009 to attract businesses.

But in most cases, the Chinese actually have to spend money to acquire our real estate.  And they are starting to make some really high profile acquisitions in some of our most expensive cities…

China Vanke and Tishman Speyer signed a deal for a $620 million luxury condo project in San Francisco this winter. In April, another deal for a cool $1.5 billion was inked in Oakland between Zarsion and Signature Development Group.


In June, several big deals in New York City went down. Zhang Xin, CEO of Soho China , joined forces with the wealthy Safra family (of Banco Safra fame) of Brazil to buy a stake in the General Motors Building in Midtown, The New York Times reported on June 25. Dalian Wanda Group, another Chinese developer, is planning to build a greenfield luxury hotel in Manhattan.

In other cases, the Chinese are gaining control over vast tracts of U.S. territory by buying up our large corporations.

For example, when the Chinese purchased Smithfield Foods, they suddenly owned 460 large farms and became the top employer in dozens of communities all over the United States…

Smithfield Foods is the largest pork producer and processor in the world.  It has facilities in 26 U.S. states and it employs tens of thousands of Americans.  It directly owns 460 farms and has contracts with approximately 2,100 others.  But now a Chinese company has bought it for $4.7 billion, and that means that the Chinese will now be the most important employer in dozens of rural communities all over America.

And the Chinese seem to have a particular interest in economically-depressed areas of the country.  Perhaps they feel that now is the time to gobble up companies and properties in such areas for bargain-basement prices.  For instance, the following is from a CNBC article that detailed how the Chinese are aggressively “putting down roots in Detroit”…

Dozens of companies from China are putting down roots in Detroit, part of the country’s steady push into the American auto industry.


Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.

Speaking of Michigan, one company known as “Sino-Michigan Properties LLC” actually had plans to buy up 200 acres of land near the town of Milan, Michigan.  The goal was to build an entire “China City” with artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.

But that is nothing compared to the “China City” that was being planned for New York state.  The following is a short excerpt from one of my previous articles

The Chinese have made trillions of dollars flooding our shores with super cheap products, and now they are using some of that money to buy land and property all over America.  For example, there is now a proposal to construct a multibillion dollar “China City” that would span approximately 600 acres in a remote area of New York state.  This “China City” (that is actually what it would be called) would be located on Yankee Lake in Sullivan County, New York.  The plans anticipate large numbers of Chinese businesses, plenty of homes for Chinese immigrants, a Chinese high school, a college, a casino and even a theme park.  And the first 600 acres is only for “phase one” of the plan.  Ultimately, the goal is for “China City” to cover more than 2,000 acres.  Those promoting this plan say that it will be a great way for New Yorkers to learn to appreciate Chinese culture.

But of much greater concern is the huge wave of real estate purchases that are quietly happening all around us every single day.

The following is from a recent CNBC article entitled “Chinese buying up California housing“…

At a brand new housing development in Irvine, Calif., some of America’s largest home builders are back at work after a crippling housing crash. Lennar, Pulte, K Hovnanian, Ryland to name a few. It’s a rebirth for U.S. construction, but the customers are largely Chinese.


“They see the market here still has room for appreciation,” said Irvine-area real estate agent Kinney Yong, of RE/MAX Premier Realty. “What’s driving them over here is that they have this cash, and they want to park it somewhere or invest somewhere.”

So what happens when we get to the point when the Chinese government and/or Chinese citizens own 10 percent of all the real estate in the entire country?

Will it be a problem then?

What about if we get to 20 percent or 30 percent?

At what point will we be forced to admit that we have a major problem on our hands?

Many of our leaders seem resigned to the fact that the future will be dominated by communist China.

For example, the President of the St. Louis Federal Reserve recently stated that “attitudes in the U.S. are going to have to change” because America “will not permanently be the global leader”

That’s according to Federal Reserve Board of St. Louis President James Bullard, who spoke to the Wall Street Journal on the sidelines of a conference during a recent visit to Hong Kong.


Attitudes in the U.S. are going to have to change, because the U.S. will not permanently be the global leader,” Mr. Bullard said.

In fact, Bullard insists that it is inevitable that the U.S. will end up playing second fiddle to communist China…

In that case, “the U.S. would be playing a role to China similar to the role the U.K. plays to the U.S. today,” Mr. Bullard said. “People think it’s 50-75 years away but it’s probably only 25 or 20 years away, something like that.”

And this is one of the guys that is running the U.S. economy?

There is more than one way to dominate your enemy, and the Chinese understand this.

Sadly, most Americans have absolutely no idea what is happening.


The United States - A Colony Of China


And now, as Liberty Blitzkrieg's Mike Krieger adds, it appears Zillow is more than happy to hold the floodgates of Chinese buyers open in roder to keep the housing bubble 2.0 inflated...

...just last year I covered how corrupt Chinese are laundering their money through U.S. real estate in my post: Corrupt Chinese Politicians are Buying Billions in U.S. Real Estate.

This is a very important trend that we must keep our eyes on in the years ahead. Particularly since private equity buyers and hedge funds can no longer make a return on buy-to-rent, the real estate industry will become increasingly desperate to pitch American property to anyone willing to keep Housing Bubble 2.0 inflated.

From Bloomberg:

Zillow Inc. agreed to make its U.S. property listings available to Chinese consumers through a partnership with a Beijing-based website.


E-House Holdings Ltd.’s Leju real estate site will carry Zillow listings that include homes for sale by agent and owner, units in projects under construction and foreclosures and short-sale properties, Seattle-based Zillow said today in a statement.


Chinese buyers spent more than $11 billion on U.S. real estate last year, with an average $425,000 purchase, Zillow said. The Leju-Zillow site, to be operated by the U.S. company, will be ready around midyear, according to the statement.


“Brokers and agents with listings on Zillow are now able to reach Chinese home shoppers who are ready to invest in the U.S. market, with no additional cost or effort,” Errol Samuelson, Zillow’s chief industry development officer, said in the statement.

Have fun being a peasant under your Wall Street and Chinese feudal lords.

Full article here.


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0b1knob's picture

Remember when the Japanese were buying up all the land in Hawaii?   And every golf course in California?   Remember how that worked out?   Yeh me niether....

Groundhog Day's picture

After they send all their Yuan's and bid up manhattan...look for the bottom to fall out on their levered purchases.....even if it doesn't somehow i don't think the US will allow them to take possesion if SHTF

0b1knob's picture

The dumb (foreign) money always buys at the top.   The some thing is happening in London with Russian money.   The Russian will get hosed.

AnAnonymouses's picture

Wealthy China citizenses soon to be wealthy America citizenses?

smlbizman's picture

for 500k and 10 landscapers....yes

WhyDoesItHurtWhen iPee's picture

Aw yu goad ah bewong to us ....... Beecheeze !

Citxmech's picture

The thing about purchasing property in foreign lands is that demanding delivery is a bitch.

macholatte's picture



Chinatown Skin Infection Outbreak Spreads in NYC, Number of Cases Doubles

N2OJoe's picture

Well seeing as how illegal aliens get preferrential treatment over American Citizens, I for one, DO believe they will be allowed to take delivery of their land.

If anyone is denied their property, it will be Taxpayers.


That is, unless we have enough skilled Guillotine builders/operators to "service" every Lawyer, Bankster, and Politician in the country...

Tale2cities's picture

Yea and it's so hard to blend in.

Mr. Magoo's picture

Welcome to the new SLAVELANDIA

hobopants's picture

This explains why my landlords name sounds exactly like the noise my doorbell makes.... well thats one mystery solved.

El Vaquero's picture

"even if it doesn't somehow i don't think the US will allow them to take possesion if SHTF"


Exactly.  If SHTF, who the fuck is going to respect the property rights of foreigners?  Possession will be the law.

NotApplicable's picture

Japan's CB is a tool of David Rockefeller (et al.), and was used to prop up the dollar.

The PBoC????

I've no idea, but I don't expect the same outcome. IMO, they're in a MAD scenario with the Fed.

NihilistZero's picture

The math still applies.  They're overpaying and if the political SHTF theyll get done like the Japanease during WW2.

midtowng's picture

China hasn't been communist for decades.

NihilistZero's picture

They never were communist and neither was the USSR.  It's all varying levels of fascism.

Larry Dallas's picture

Yeah but the "Walkers" will sell anything for a buck...

BaBaBouy's picture

It Makes good Sense...
The RICHER Chinee Are Desperate To Get Out Of That Polluted Craphole...
Just Check The VANCOUVER RE Market.

Troll Magnet's picture

Hmm..So all those children of illegal immigrants getting free, albeit shitty public "schooling" can start thanking the chinks for dumbing them down now? Excellent!

0b1knob's picture

If American public education is so bad why do the Chinese spend hundreds of thousands of dollars to send their children here?

I live near Cerritos California and at least half the high school students are Chinese chilren living in rented housing who are in the country (at great cost) to get an American education.

Just asking....

Lin S's picture

Because their view of the US is rooted in 1945, not 2014.  To the Chinese, an American education is superior and highly desirable.

It will take a long time for them to grasp what America's moral depravity has done to their children's ethics and values, or that they, themselves, eagerly signed their offspring up for such moral corruption.  If the light ever comes on, that is...

LFMayor's picture

Because their view is full of young, barely employed and wifeless men.  Full as in what, 650 million or so?  Young men who will, let us say... Act Out,  when the rubber dog shit factories shutter.


Troll Magnet's picture

Also, a dumb 7th grade Chinese kid can come here and be one of the smartest especially in math and science because the said dumb Chinese kid already learned all that shit when he was a 4th grader in China. 

American Public Education = Exceptional!

lemonobrien's picture

Everyone wants to be white; excepts whites, which wanna be niggers.

The man with pointy horns's picture

Your kind of right there. Some black people try to whiten their skin, and in Iran loads of people get nose jobs so they can have a 'western' nose. As for whites, too many hipsters try to talk gangster, too many women dress like sluts and too many people's idea of a good time is to go to a club and get smashed out of their head.

There's a word for that blackification; white wannabe negros.

Troll Magnet's picture


because those stupid Chinese view everything American as SUPERIOR.

Chinese view just about everything non-Chinese as SUPERIOR.  That's why they send their kids overseas to study, work their ass off to buy Mercedes and Rolexes, consume Japanese and Korean pop culture and generally avoid their own Made in China crap.  Yet they are extremely nationalistic and xenophobic.  They are the inbred sand monkeys of Asia.

As for our public education...You mention Cerritos as some sort of a public education haven.  Fine.  I'm familiar with Cerritos.  But what about the entire LAUSD system?  The most expensive yet THE WORST public school system in the country?  Do you see all those stupid Chinese parents sending their kids to Crenshaw High?  Compton? 


MeBizarro's picture

You have no idea what you are talkinga about.  It is because of the Gaokao exam system and how if you don't score incredibly highly on it your screwed as a Chinese citizen unless you have politically-connected parents.  It is the only thing that matters when placement is determined for university students.  Nothing else (grades, sports, extracurricular, lifestory, etc) matters.

Lin S's picture

No, it is YOU who don't know.

Political connections mean less than zero - as do high entrance exam requirements - if you live in the wrong province. 

Live in Guangdong but want to attend university in Beijing?  Sorry, but only a small handful of prospective students are admitted from where you live, no matter how "well-connected" your parents are, or how you scored on exams.

Lived there, seen that.

Try again, ignorant jackass.


eternalblue's picture

Like mentioned, it's just a prestige perception, a US education is a mark of class to the Chinese. 

It's just like buying a BMW or Audi and thinking it's high class when in actuality you are buying an overpriced, unreliable piece of work.

Hopefully the higher ed liberal viral idiocy gets exported to china too so it can destroy them also.


Troll Magnet's picture

And you know, it's a status symbol for them, too.

"My chillen go school in Amelika!"

Yeah...Just pray they make it out alive.

DIgnified's picture

isnt copper tanking?

Cacete de Ouro's picture

You want happy ending?

cougar_w's picture

Someone is going to wind up screwed, happy or no.

Zero Debt's picture

Lao Zhi ancient wisdom: Do not make soup all bubble no broth.

More_sellers_than_buyers's picture

Meh... go ahead and let them buy it. We will buy it back cheaper in 5 years

Troll Magnet's picture

Why buy it back? Let them pay our taxes and then, eminent domain, bitchez!

Bastiat's picture

This makes me sick.

cougar_w's picture

I don't see how it ever works out for the Chinese. The biggest risk for them is that these purchases are hot money from the shadow banking system there, the results of graft and corruption. As the Chinese margin calls (and perp walks) come in some of this money is going to be clawed back (given their history it might be at gun point) and result in huge fire sales of US real estate.

So bubble 2.0 will get a little life, and a small amount of money will be arb'ed by the brokers, but this is probably a dead man walking.

Bastiat's picture

I feel less sick, thanks.

NotApplicable's picture

While I hope you're correct, I'm going to assume that for every blow-up, the PBoC will suddenly become the new de-facto property owner. There is absolutely no way this invasion will not be fully funded and allowed to collapse.

Watson's picture

To me, possibilities break down:
1. Purchases made with US debt;
2. Purchases made with Chinese debt;
3. Purchases are all-cash.

1. => Forced sellers might trigger US real estate crash (in far future);
2. => Forced sellers might trigger US real estate crash _soon_ (those margin calls);
3. => No forced sellers (these are bolt-hole purchases), but if things get bad in China the Chinese actually occupy the properties bought. Implication is moderately good for US property market.

No idea what of 1-3 is true for US, but Russian purchases in London are definitely 3 (which is why expensive top-end London is actually far _safer_ than much cheaper property outside London bought with 95% mortgage guarantees peddled by the Government - easy to see an election coming...)


Pool Shark's picture

Cougar & Ob1Knob are correct. Those of us old enough to remember the "go-go" 80's real estate bubble; the Japanese buying up vast tracks of land in California, iconic buildings in Manhattan, country clubs and businesses; also remember how it ended.

How many remember the movie "Rising Sun" with Sean Connery in 1993. It was all about how Japan was going to take-over corporate America and run the universe in our stead. Many of the people I saw the movie with truly believed it was going to happen. Unfortunately (for the Japanese) that movie just about top-ticked the market. The real estate market crashed, and the Nikkei subsequently lost over 3/4 of its value.

2014: Enter the Chinese. I have deja vu all over again...


MansaMusa's picture

Rising Sun?  Nah, but I remember Eddie Murphy in "The Golden Child"!

Son of Captain Nemo's picture


Should come in handy when the United States gets nuked by Russian and Chinese ballistic missile submarines that will serve as a form of population control for China and India?

Grande Tetons's picture

Spending money is akin to ditching fiat. Real assets for real shit. 

Bill of Rights's picture

Hence the reason for cheap labor, no Guns and slavery, we are being preped for our coming overlords.

TaperProof's picture

No pretty map of where they are buying the most? Bummer.