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.