RWR Risk Profile: China Sam Enterprise Group
On January 17, 2020, RWR released a comprehensive risk profile of China Sam Enterprise Group (Sam Group), the Chinese company reportedly behind the attempt to sign a 75-year lease for Tulagi Island of the Solomon Islands. The purpose of this profile is to delve deeper into the background and identity of Sam Group in order to understand how and why this relatively unknown company was either selected, or motivated for other reasons, to pursue a transaction of such scope and significance.
RWR’s research not only uncovered apparent attempts by the company to cultivate relations in Jamaica that involved some of the same executives as the Tulagi controversy, but also identified the extensive connections of the company and its subsidiaries to the People’s Liberation Army (PLA) and the People’s Armed Police (PAP).
To be sure, Sam Group also retains other subsidiaries and “strategic partners” with more conventional business identities (e.g., operating in the energy, engineering, construction and other sectors). Taken together, however, the company’s structure, ownership changes, stakeholders, business practices, and dual-use potential paint a picture that demonstrates the importance of enhanced diligence and caution when evaluating their existing and future endeavors.