China syndromeSale of NYC historic Waldorf Astoria hotel to Chinese firm worries U.S. security officials

Citing an espionage risk, U.S. officials are expressing concern over the sale of the historic Waldorf Astoria hotel in New York City to a Chinese insurance company.

As Insurance Journal reports, the Beijing-based Anbang Insurance Group purchased the property from Hilton Worldwide on 6 October for $1.95 billion. Under the terms of the sale, Hilton will still manage the site for the next 100 years.

One clause in the sale contract, referring to “a major renovation,” has raised eye brows in Western security services.

Specifically, they worry that renovations and modifications to the structure could accommodate Chinese eavesdropping and cyber espionage equipment. The hotel serves as the home of the American ambassador to the UN, as well the hosting President Barack Obama and hundreds of high-level U.S. officials, and the officials of other governments, during their stays in New York.

“We are currently in the process of reviewing the details of the sale and the company’s long-term plans for the facility,” said Kurtis Cooper, a spokesman for the U.S. Mission to the United Nations, “The State Department takes seriously the security of its personnel, their work spaces and official residences. We are constantly evaluating our security protocols and standard operating procedures to ensure the safety and security of our information and personnel.”

Given the history of Chinese surveillance of Western travelers in China, officials do have a reason for caution. The U.S. State Department routinely warns citizens to be aware of such risks when travelling.

“Hotel rooms (including meeting rooms), offices, cars, taxis, telephones, Internet usage and fax machines may be monitored onsite or remotely, and personal possessions in hotel rooms, including computers, may be searched without your consent or knowledge,” the department said, “Business travelers should be particularly mindful that trade secrets, negotiating positions and other business-sensitive information may be taken and shared with local interests.”

The State Department has leased space on the forty-second floor to house the U.S. ambassador to the UN for more than fifty years, and studies during both Republican and Democratic administrations concluded that it would be costly to uproot the operation. The Waldorf has proven cost efficient and effective for its purpose, having to meet a lengthy list of demands from the UN.

The current 10-year department lease is set to expire next year. There are no further details on whether or not officials will consider an alternate location if the Chinese company is allowed to complete its acquisition of the hotel.