Concerns Over Chinese Ownership of NH Properties Near Water Systems

Residents of a small town in New Hampshire and local officials have raised alarms regarding national security after Chinese firms acquired significant real estate close to the community’s water supply.

This year, Nongfu Spring, a leading Chinese bottled water and beverage company, discreetly purchased a 23-acre industrial site in Nashua that spans 337,391 square feet.

Owned by China’s richest individual, Zhong Shanshan forked over $67 million for the property, a price significantly higher—about four times—than its appraised worth after sitting vacant for over a decade.

The company’s limited presence in the U.S. market, coupled with increasing sales prices and its close proximity to key infrastructure like the Pennichuck water system, Nashua Airport, and various defense facilities, has raised eyebrows about the nature of the acquisition.

Professor Kelly K. Gerchanek, a visiting scholar and author of “Political Wars: Strategies to Combat China’s Plans,” pointed out that entities connected to the Chinese Communist Party have been systematically acquiring vital assets across the U.S. However, she questioned whether China really acknowledges U.S. sovereignty.

Water Access Worries

Aside from the immediate concerns regarding property ownership near critical infrastructure, some townsfolk are particularly anxious about potential access to city-owned water systems for the new facility.

Pennichuck Water Works asserts it can fulfill the water demands of Nongfu Spring. CEO John Boisvert indicated that they are permitted to supply over 30 million gallons daily and that typical demand hovers around 11 to 12 million, rising to 20 million in summer months. So, there’s plenty of extra capacity, at least for now.

Now, critics continue to voice concerns about possible strains on local water supplies. Some suggest that Nongfu Spring might even aim to acquire the town’s water facility entirely.

Governor Kelly Ayotte (R) has stated she intends to keep a close watch on the transaction to ensure that does not occur. “It’s essential to safeguard New Hampshire from foreign threats like China. We must ensure that national security risks don’t take hold in our state,” she remarked.

Supporters of Nongfu Spring’s acquisition argue that a contract with Pennichuck could lead to lower water costs for residents. C. George Bower, chairman of Pennichuck’s board, claimed such agreements can generate ongoing revenue for the community.

He firmly stated, “There are absolutely no plans to sell the company or the land. That’s simply not on the table.”

About Nongfu Spring

Nongfu Spring, which Zhong founded in 1983, began as a journalist for a state-controlled newspaper. He also controls Wantai Biological, another company. By 2020, he had become China’s wealthiest person, overtaking notable figures like Tencent’s Pony Ma and Alibaba’s Jack Ma.

Gerchanek emphasized that reasonable citizens wouldn’t become wealthy in tandem with a regime like the CCP—or in a country known for strict oppression—without a level of complicity.

She expressed doubts about the rising price tackling just water access, hinting there might be more underlying motives behind this purchase.

Despite scrutiny about Zhong’s potential links to the Communist Party, Nongfu Spring faced a boycott last year, largely due to accusations from the public over design choices reminiscent of Japanese aesthetics. This online backlash reportedly slashed the company’s market value by $3 billion and reduced Zhong’s wealth by $2 billion.

It’s still unclear whether this public outcry played a role in Nongfu Spring’s decision to buy the property in New Hampshire, and the company’s ultimate intentions remain ambiguous.

Community Reaction

Senator Kevin Avard (R) has joined the chorus of critics regarding the sale. He reported that nearly immediately after the acquisition, Nongfu Spring sought to pump 200 gallons of water daily from Nashua’s public supply.

Avard noted, “Only after residents started inquiring did they retract their request,” adding that efforts had been made in the past to keep water public, and there can’t be a new battle against foreign interests.

He posed a question, “Isn’t it reasonable to wonder whether a billionaire corporation is overpaying foreign authorities for abandoned property in New Hampshire to gain influence?”

This situation isn’t isolated; Avard pointed out that another Chinese-controlled business had previously acquired a campus near Nashua Airport.

Lily Tang Williams, a Republican congressional candidate and a survivor of Mao’s Cultural Revolution, shared similar worries about Chinese entities purchasing local real estate.

She recalled, “Daniel Webster College, situated on land next to Nashua Airport, was sold to Chinese investors in 2018. Some buildings are now rented out without any review from the Committee on Foreign Investment in the United States.”

Requests for comments from the Treasury Department and Nongfu Spring went unanswered.