Investigation into HNA’s New York headquarters may show new escalation in US-China trade war
The Chinese conglomerate bought its New York headquarters – located 10 minutes from Trump Tower – before Donald Trump became president. Now it’s being investigated as a security threat
The US is investigating the national security implications of a Chinese-owned property in Manhattan – a review which indicates that the Trump administration might be unsheathing a new weapon in its trade war with China.
Chinese conglomerate HNA bought a 90 per cent stake in the midtown building at 850 Third Avenue it uses as its US headquarters in 2016. The building, which is 10 minutes’ walk from US President Donald Trump’s New York residence, now poses concerns because of its proximity to Trump Tower and a police station it houses that oversees the Trump building.
Concern over the building is legitimate: foreign-owned facilities can be used to eavesdrop on sensitive conversations. When the Waldorf Astoria hotel was sold in 2014 to another Chinese conglomerate, Anbang, then-President Barack Obama stopped staying there on his trips to New York.
The choice to examine HNA’s 2016 real estate deal, however, sends a strong signal that the US has begun to cast a very wide net over Chinese investments in the United States.
While many believe that the technology sector is America’s main concern for national security considerations, the scope of deals subject to review by the newly expansive Committee on Foreign Investment in the US (CFIUS) goes well beyond that.