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Fears that Chinese billionaire Zhong Shanshan planned to buy his way into controlling Nashua’s water supply are giving way to tentative relief, with officials keeping a wary eye on a deal.

The good news, says Pennichuck Water, is that the potential deal with Zhong’s Nongfu Spring could ultimately lower residential water bills.

But state and local officials are less than thrilled that the international customer is based in China, which has an adversarial relationship with the U.S., and where companies are under the thumb of the Communist regime.

In February, Nongfu Spring secretly bought a $67 million industrial property in Nashua close to the Pennichuck Pond watershed, sparking concern about the future of Pennichuck Water, the utility owned by the City of Nashua. But C. George Bower, chairman of Pennichuck’s board of directors, told NHJournal there is no plan to sell Zhong anything but water.

“There is zero plan to sell the company, there is zero plan to sell any land. We have no land to sell,” Bower said.

Zhong’s close ties to the authoritarian Chinese Communist government, his company’s less-than-stellar environmental record, and the secrecy surrounding the Nashua plant generated alarm throughout the state. The company declined to respond to questions from NH Journal about the unusual property purchase or its plans in Nashua.

Gov. Kelly Ayotte told NHJournal that she would be watching the deal to make sure Nongfu remains a Pennichuck customer and not a Pennichuck owner.

“It’s critical that we safeguard New Hampshire from foreign adversaries like China. We need to ensure we aren’t allowing any national security threat to take root in our state,” Ayotte said.

According to Forbes, Zhong is worth $58 billion, making him the wealthiest man in China. In addition to owning Nongfu Spring, China’s biggest maker of bottled water, he also controls Wantai Biological, which makes rapid diagnostic tests for infectious diseases, including COVID-19.

Nongfu and Pennichuck are in the preliminary stages of deal negotiations, Bower said, but just for water. Zhong wants up to two million gallons a day for his planned beverage plant at his new 80 Northwest Blvd. property. That’s good news for Pennichuck, its owners, and its customers, Bower said. 

Pennichuck has the capacity to produce up to 35 million gallons per day, Bower said, more than enough to accommodate Nongfu’s planned operations. Any costs associated with hooking Nongfu up to Pennichuck’s water system, like adding new water lines, would be borne by the company.

A large-scale, industrial customer like Nongfu would lock into a contract that guarantees a set amount of water per month for the customer. Bower said such deals also require the customer to pay for all the water, whether they use it or not, giving Pennichuck a consistent, new revenue source.

It gets better for Pennichuck. As part of its conservation efforts, Pennichuck charges commercial and industrial customers on a rising scale, meaning the more water they buy, the higher the rate goes. Adding Nongfu as a customer could help drive down costs for Pennichuck and everyone in the Pennichuck system.

“We have fixed costs and variable costs, and a contract like this brings in an ongoing revenue stream that could help us control rates,” Bower said.

That means Pennichuck’s thousands of residential water customers throughout southern New Hampshire could end up paying less for their drinking water, Bower said.

Adding Nongfu to the system is the same as adding any other commercial or industrial customer, Bower insisted. Pennichuck already supplies water for the Anheuser-Busch brewery in Merrimack, which Belgian beverage conglomerate InBev owns.

Granite Staters concerned by a Chinese billionaire buying a large facility near Nashua’s water supply say the issue isn’t xenophobia. Many international businesses are active in New Hampshire. Instead, it’s the specific threat posed by China.

“Water is one of our most vital resources – to have a business, backed by the CCP, accessing water in our backyard is alarming,” said former state Rep. Randy Whitehead. “City officials and the Pennichuck Corporation need to come clean and provide some answers about this deal.”

Sen. Regina Birdsell (R-Hampstead) has proposed legislation to stop Chinese companies from owning land near sensitive military sites in the state.

“Whether it’s flying spy balloons across our country or scooping up critical plots of U.S. real estate, China has stepped up its efforts to spy on our country,” Birdsell said when she proposed the legislation. “Other hostile nations, such as Russia, Iran, Syria, and North Korea, could try the same surveillance tactics unless we do something to stop them. Totalitarian nations do not see any difference between one of their citizens’ companies and the government itself.”

The prospect that Pennichuck could be bought by a foreign individual or entity is alarming, and the reason that the City of Nashua now owns the utility. 

“When the city bought Pennichuck, it really did to secure the water supply,” Bower said.

Nashua waged a decade-long battle to buy Pennichuck, closing the $200 million deal in 2012. The city took action after watching the old owners of Pennichuck risk the future security of the region’s water supply. The former owners sold off wetlands to commercial developers and were even considering a purchase offer from a French company when Nashua stepped in. Today, Pennichuck continues to operate as a for-profit utility corporation, but it reports to a single shareholder, the City of Nashua. 

China’s largest beverage company, Nongfu Spring, is setting up operations in Nashua after spending $67 million on an industrial building.

But the property’s location, adjacent to the Pennichuck watershed area that supplies drinking water for the city, raises questions about where Nongfu will get its H2O.

Pennichuck Pond

Recent developments have sparked public concern about the potential sale of Nashua’s water resources to a foreign entity. A significant real estate transaction and subsequent hiring activities have brought those issues to the forefront, prompting questions about the future of the city’s water supply.

According to online records, in February 2025, STAG Industrial sold a 337,391-square-foot industrial property at 80 Northwest Boulevard in Nashua for a staggering $67 million, despite online assessments valuing the property at approximately $15 million. The buyer was not officially disclosed, leading to speculation about foreign involvement. However, recent job postings on LinkedIn indicate that Nongfu Spring, a major Chinese bottled water company, is actively hiring for positions at that location.

Nongfu sells bottled water, tea, juices, and other drinks. It was one of the first private beverage companies to emerge in China in the 1990s and helped make its owner, Zhong Shanshan, the richest man in China with a net worth of around $65 billion. 

Zhong and Nongfu came under fire last year in China when nationalist activists there deemed the billionaire was not patriotic enough. It’s not clear how much the boycott was the work of so-called nationalists or part of a pressure campaign brought by the authoritarian government against Zhong. However, it’s well known that China’s Communist Party (CCP) exerts a strong influence over businesses operating within the country, both domestically and foreign. 

That’s one reason state Senate Majority Leader Regina Birdsell (R-Hampstead) has proposed legislation to prevent agents of the Chinese government from buying and owning land near sensitive military locations in the state.

The concern in the Gate City isn’t war fighters, but water.

Across the road from Nongfu’s new beverage plant is the Pennichuck Pond, one of many ponds in the Pennichuck water system that serves as Nashua’s main water source. 

Nashua’s water supply is managed by the Pennichuck Corporation, a semi-private water company controlled by the city. Nashua purchased Pennichuck in 2012 in a unique $200 million deal that left the corporate structure in place but positioned the city as the sole shareholder. 

The deal took 10 years and multiple trips to court to go through. The push to buy Pennichuck started in the early 2000s when it was learned that a French company planned to buy a controlling interest in the water supplier. City leaders acted to keep local control of the water. 

But prior to the possible foreign owner controversy, city leaders were unhappy with Pennichuck’s management, which had been selling off hundreds of acres of land to developers. The purchase was also a way for Nashua to keep Pennichuck’s land for water use, and not for building.

The upcoming Pennichuck Board of Directors meeting on May 21, 2025, has locals wondering if they will discuss and vote on any measures related to Pennichuck Pond, the water supply, and any deals related to these recent transactions. Current Board Chair C. George Bower did not respond to a request for comment about the upcoming meeting.

Pennichuck is based in Nashua and supplies water to communities throughout southern New Hampshire. Pennichuck serves approximately 40,000 customers using water from the Pennichuck watershed and the Merrimack River. It generates more than $50 million a year in revenue against $40 to $45 million in expenses.

The extremist left-wing group behind the assault on Elbit Systems in Merrimack is under FBI investigation, NHJournal has learned.

As Calla Walsh set off smoke bombs from the roof of the Elbit Systems of America facility, images of her protest were pushed out on social media by Palestine Action US. The group is the American offshoot of an anti-Israel organization based in the U.K., and it gets financial support from local millionaire — and self-declared Communist — James “Fergie” Chambers. Chambers put up bail for Walsh and her two co-defendants after their arrest on charges stemming from the Merrimack incident.

Walsh’s connections to Palestine Action US and Chambers have caught her in the FBI’s crosshairs.

Merrimack Police Detective Kevin Manuele’s probable cause statement seeking court approval to search Walsh’s cell phone states the FBI is already interested in Chambers and Palestine Action US. 

“The Federal Bureau of Investigation was conducting an investigation into the group that was involved as well as their leader Chambers, who is known to the FBI,” Manuele wrote.

The FBI generally does not publicize details of ongoing investigations, but the information came to light as part of a court battle over Walsh’s cell phone. Merrimack police seized Walsh’s it during her arrest at Elbit, and the progressive teen activist has been demanding its return, according to court records.

Weeks after the November arrest, FBI Agent Kevin Leblanc took possession of the phone as part of that agency’s inquiry into Chambers and Palestine Action US. The phone has since been returned to Merrimack Police. New Hampshire Attorney General John Formella won’t release it unless Walsh agrees to let Granite State investigators search it for information. In lieu of that, Formella’s office went to court this month seeking approval to look at the phone’s contents. 

Jeffrey Odland, Walsh’s defense attorney, is objecting on grounds that the attorney general’s actions violated her Fourth Amendment protections against unreasonable searches.

“The State’s seizure of [Walsh’s] phone and subsequent request to search are constitutionally unreasonable due to the 184-day delay in the state applying for judicial permission to search,” Odland wrote. 

Manuele’s probable cause statement indicates there is likely evidence of conspiracy on Walsh’s phone beyond her actions with co-defendants Sophie Ross, Bridget Shergalis, and Paige Belanger. All four women have ties to Palestine Action US, as well as Chambers.

Palestine Action US spearheads attacks on Elbit, even publishing a since-deleted map of all Elbit facilities in the United States on its social media platforms. It also broadcasts messages to “shut down Elbit,” according to Manuele.

Walsh, a self-identified Communist and “anti-imperialist,” has a long history of protesting against Elbit. After a 2022 arrest at the Cambridge, Mass. Elbit facility, Walsh expressed her displeasure with police on social media.

“Cambridge pigs are still pigs. They serve to protect capital and empire,” Walsh wrote.

She also posted a message on social media calling Israelis “the scum of nations and pigs of the Earth.”

Walsh and Chambers appear in a photo together at the Cambridge protest which was shared by Palestine Action US, according to Manuele. Palestine Action US promoted the Merrimack incident with photos of Walsh, and it used the picture of a masked Walsh holding smoke bombs on top of the Elbit Systems building in later promotional images shared to social media.

Calla Walsh, Fergie Chambers and Paige Belanger protesting Elbit Systems on Oct. 30, 2023 in Cambridge, Mass. (Via Instagram)

Chambers is a member of the Cox family, worth about $34 billion, according to reports. Chambers essentially negotiated an early inheritance with the family trust, allowing him to walk away with a reported $250 million which he used to start a Marxist commune in the Berkshires, as well as a “People’s Gym” in the Upper Valley. He also supports left-wing protests and funds bail for activists like Walsh.

Chambers denied being a Palestine Action US leader, though he’s often described as a co-founder.

“PAL Action is not now and never was an ‘org,’” Chambers wrote NHJournal. “It is a social media platform that shares news of direct actions people have taken against Elbit or other weapons companies. We’ve shared things in Cali, VA, TX, MA, NH, etc. If someone sends us [something], we share it. Bears zero connection to who did it.”

When it comes to Palestine Action USA, Chambers is just another member of the organization that isn’t an organization, he said. Chambers got attention in recent months for his outspoken opposition to Israel, America and capitalism, among others. 

“Israel does not deserve to exist,” Chambers told LA Magazine. “It is a false state propped up by the West.” 

Walsh is a political star in her own right. She gained fame as a 16-year-old activist who helped push Sen. Ed Markey (D-Massachusetts) to victory in a primary race against Joseph Kennedy III. 

Walsh is also an avowed fan of Hamas and Iran’s repressive, authoritarian regime run by religious fundamentalists. She recently took to social media to lament the death of Iranian President Ibrahim Raisi because he did much to help overthrow the West through terror.

“Even if they don’t explicitly identify as communist, by dealing blow after blow to US imperialism, Iran, Hamas, Ansar Allah & the entire Axis of Resistance are doing far more to create the conditions for communism to be possible than literally any Western armchair communists,” Walsh wrote.

She also wrote last week that Iran, Russia, and China work together to help Hamas operate.

“Remember the full picture. The Palestinian resistance doesn’t take orders from Iran, but their capacity to resist would be much weaker w/o Iran’s support, and that support would be impossible w/o Iran’s close relations with China & Russia, which allows Iran to bypass sanctions,” Walsh wrote. 

But the latest news for Walsh isn’t all bad. The court order banning her from communicating with Ross and Shergalis was recently lifted.

Walsh said she’s looking forward to hugs with friends.

New Hampshire law enforcement is dealing with the one-two punch of fentanyl and methamphetamine, as opioid deaths continue to surge and methamphetamine fuels deadly violence. 

And the source of those drugs is 2,400 miles away at the U.S.-Mexico border.

Last month, Manchester and Nashua reported a combined 95 opioid-related overdoses, a 13 percent increase from December. Nine deaths are believed to be linked to these overdoses.

The figures from last year show a sharp rise in opioid overdoses and deaths, after an initial dip due to the 2020 COVID-19 related lockdowns.

November overdose totals in Manchester and Nashua were up 110 percent from the same time in 2020, according to American Medical Response regional director Chris Stawasz.

“I know there are a lot of competing priorities with COVID-19 and the variants that are out there, but this is, unfortunately, if not more deadly, as deadly as the COVID-19 crisis is,” Stawasz told WMUR.

Manchester had more than 500 suspected overdoses in 2021, 30 percent more than the previous, and Nashua had 250 suspected overdoses in 2021, which was 29 percent more than 2020.

Opioid fatalities are typically linked to fentanyl, the powerful synthetic drug being manufactured by Chinese syndicates and distributed by Mexican drug cartels. Those cartels continue to find ways to smuggle the drugs over the border, flooding American streets.

According to The Washington Post, The U.S. Customs and Border Patrol’s Laredo field office alone seized 588 pounds of fentanyl during the 2021 fiscal year, an eleven-fold increase over the 50 pounds it snared in 2020.

United States Attorney for New Hampshire John Farley said that while fentanyl is still the state’s main drug problem, methamphetamine is making gains among Granite Staters as well. It is now the second most common drug on the streets. Again, methamphetamine is a product from the cartels, he said.

“What we’ve seen is a real growth in the Mexican cartels manufacturing and distributing methamphetamine,” Farley said. “They are able to produce a cheap and very pure form of methamphetamine, what people call crystal meth, and they are very aggressive in distributing that highly addictive drug.”

One main method of distributing those drugs is dark web marketplaces. According to The New York Times, dark web sites are accounting for more and more of the fentanyl traffic in the country.

Farley said local and federal law enforcement are seeing come up from the border, and then getting shipped to the east coast. Many times, dealers are using the dark web to buy and sell large quantities of the drugs. 

“Almost anyone who wants to find a connection can find a connection,” Farley said.

New Hampshire Attorney General John Formella has said methamphetamine keeps popping up in investigations involving people shot by police officers. The last five complete investigations into fatal police shootings have found people with methamphetamine in their system who turned violent in confrontations with police, resulting in their deaths.

“Methamphetamine and fentanyl distribution continue to plague New Hampshire. As the Attorney General, I will continue to partner with federal and local law enforcement agencies to implement the most effective strategies to disrupt the flow of illegal drugs into New Hampshire,” Formella said in a statement. “It is only by this collaborative effort that law enforcement can marshal assets to protect not only our citizens but the  officers who work tirelessly to protect our state.”

Last year, Claremont’s Jeffry Ely, 40, was shot and killed during an armed standoff with New Hampshire State Police troopers. Ely had been suffering greater mental health problems as he increased his drug use, including methamphetamine, according to the shooting investigation. 

David Donovan, 35, was shot and killed by police in Meredith in November 2020 when he charged at police, armed with a knife and covered in blood from having just stabbed his mother’s boyfriend, according to the New Hampshire Attorney General’s report. Donovan’s methamphetamine use caused him to become violent, paranoid, and delusional in the months leading up to his fatal encounter with Meredith police.

In October of 2020, Ethan Freeman, 37, of Thornton, was shot and killed by Thornton Police Officer Matthew Yao when a naked and bleeding Freeman charged Yao during a confrontation. Freemen had a history of methamphetamine and other drug abuse, as well as a significant history of mental health issues.

In December 2020, Mark Clermont, a paranoid felon who was known to carry an assault-style rifle and wear a ballistic vest while hunting for alien spacecraft, was shot and killed by New Hampshire State Police Trooper Matthew Merrill during a gun battle Clermont had started. Clermont was known to use methamphetamines. Merrill suffered gunshot wounds during the incident. He survived.

Those drugs ending up in the hands of armed dealers and users are a real concern of law enforcement, Farley said.

“We’re seeing a lot more drug dealers who are armed,” he said. “When a methamphetamine dealer is armed, or is using, the public safety risk is substantial. The impacts that methamphetamine has on thought processes can really create a public safety risk.”

Is there a trade war on the way?  Or is these announced sanctions, as President Trump’s new top economic advisor Larry Kudlow says, merely “first proposals” in a broader trade negotiation?

Either way, New Hampshire should be OK.  Why? Because the good news (and bad) for New Hampshire business is that foreign trade is just 18 percent of the state’s economic activity. So even if the US and China are serious about the tit-for-tat sanctions currently under discussion, the impact on the Granite State should be relatively small.

According to data from the US Census Bureau, New Hampshire exported a total of $5.1 billion worth of goods in 2017, accounting for just 0.3 percent of all US exports. As the New Hampshire Employment Security, Economic and Labor Market Information Bureau put it, “the total value of exports from New Hampshire is relatively small, ranking 43rd when compared to the other states and the District of Columbia.”

New Hampshire’s number one export? Civilian aviation equipment, though overall telecom and related tech dominate New Hampshire’s export sector.

And if a China/US trade war should ignite, New Hampshire will benefit from the fact that its largest export recipients are in North America, not Asia. Canada and Mexico are the top of the list of nations receiving New Hampshire exports. In fact, when it comes to goods (as opposed to services), New Hampshire exports more to the United Arab Emirates than to China.

If these numbers seem surprisingly low, it’s probably because—like most Americans—you overestimate the role of trade in the overall economy.  While the US exported a robust $1.454 trillion worth of goods and services in 2016, the nation’s GDP that year was $18.6 trillion. That’s more than a drop in the bucket, but it’s still a modest-sized bucket.

The states that rely most on foreign trade tend to be in the South, states like South Carolina, Louisiana and Tennessee. What do they have in common? Agriculture and relatively low-skill manufacturing. New Hampshire ranks 48th in the dollar value of agricultural output by state. Granite State manufacturing is more high skill and tech related.

If New Hampshire’s political and economic leaders really want to impact the state’s manufacturing sector, their priority wouldn’t be exports abroad. It would be lowering energy costs here at home.