Iconic Waldorf Astoria Now Controlled by Chinese Government

China has taken control of Anbang Insurance, a company that owns numerous assets in the United States including Manhattan’s iconic Waldorf Astoria.

Anbang will be under the control of the China Insurance Regulatory Commission for at least the next year, according to CNN Money.

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In addition, Anbang Chairman Wu Xiaohui is being prosecuted for economic crimes, according to statements issued by the commission and reported by CNN. Those crimes include fraudulent fund-raising and improperly taking company assets.

The Chinese government said the decision to put Anbang under its control was tied to “illegal management and operation activities.” There were no specific details provided regarding those activities.

Anbang will, however, remain a private company. The takeover of operations is temporary and part of an effort to protect the interests of consumers, the government said.

As previously reported by TravelPulse, the Chinese government has been cracking down on companies that have made lavish investments.

Anbang was founded in 2004 as a provincial car insurer. Over the years the company has grown to have a global presence and made many high-profile purchases including life insurance companies in the Netherlands and South Korea, a Belgian bank and various hotels.

The company also famously spent $1.95 billion on the Waldorf Astoria and made a failed attempt to buy the Starwood hotel chain, according to CNN.

READ MORE: Waldorf Astoria New York to Close for Two-Year Renovation

It's not clear how the Chinese government’s temporary takeover of Anbang will affect the future of the historic Manhattan hotel. The property is currently closed while undergoing a massive renovation and restoration.

The chief executive officer of Hilton Worldwide Holdings, Inc. (which manages the Waldorf Astoria for Anbang) said last week that the insurance company was moving forward with previously announced plans to convert hotel rooms into luxury condominiums.

The hotel is slated to reopen in two to three years.