The Chinese government has taken control of Anbang Insurance Group, a Beijing conglomerate that has aggressively acquired overseas companies and properties including Waldorf Astoria in New York city.
The move highlights the complexities the US faces as more and more Chinese companies often with opaque ownership structures attempt to purchase stateside companies.
The Chinese government took over Anbang Insurance Group through the China Insurance Regulatory Commision (CIRC) which said it was acting to protect insurance consumers because Anbang was in danger of insolvency.
As it is now, the government work group will control Anbang for one year until February 22nd 2019.
It is not clear yet what will happen to the company’s ownership afterwards. The regulator said the company’s Board of Directors will have to step down for members of the working group for the company to continue to operate as normal.
Meanwhile, the regulator said that Wu Xiao Hui, Anbang’s Chairman is being prosecuted on suspicion of committing economic crimes.