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Congressman Lowenthal Urges The U.S. Committee On Foreign Investment To Review Sale Of Long Beach Hotels

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Washington, D.C., April 20, 2017 | comments

Congressman Alan Lowenthal (CA-47) has sent a letter urging Treasury Secretary Steven Mnuchin to have the Committee on Foreign Investment in the United States (CFIUS) review the potential sale of the Hyatt Regency Long Beach and the Hyatt Centric the Pike hotels to an affiliate of the Shanghai Construction Group, a Chinese state-owned construction and real estate company ultimately controlled by the municipal government of Shanghai, China.

In the letter, the Congressman states, “CFIUS should take the opportunity to ensure any potential national security questions are addressed before the transaction has been finalized. The hotels are within a line of sight of the offices of federal agencies including the U.S Customs and Border Protection and within closed proximity of the offices of federal agencies including Immigration and Customs Enforcement, the investigative arm of the Department of Homeland Security and the Department of Defense, which handles sensitive information related to national security.”

In its annual report to Congress in November of 2016, the U.S.-China Economic and Security Review Commission advised U.S lawmakers to take action to ban China’s state-owned firms from acquiring U.S. companies because the Chinese Communist Party has used state-backed enterprises as the primary economic tool to advance and achieve its national security objectives.

“I will continue to press for review of any real state or corporate transaction in my district that raises questions on national security, whether due to proximity to federal government offices, military bases or other federal infrastructure, harboring sensitive customer information, or hosting meetings with representatives of foreign governments,” Congressman Lowenthal said in the letter.

Congressman Lowenthal also urged CFIUS to review the potential sale of the Westin Long Beach hotel to entities tied to China or other foreign states because of the hotel proximity to the U.S Customs and Border Protection Los Angeles/Long Beach Sea Port office and because the hotel has also hosted government agencies with sensitive national security information.

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