After failing to comply with Chinese court orders, companies part of General Nice (俊安) group, the owner of the Isua iron-ore project in Greenland, as well as two members of the family in control of it, have been added to the “List of Dishonest Persons Subject to Enforcement,” as the name (失信被执行人名单) of a Supreme People’s Court-issued list of judgement defaulters is often translated in PRC sources. The companies directly affected by the judgements behind the listing are not the direct owners of the Greenland project, so the only relevance for Greenland is what it can suggest about the Group’s practices and financial health. However, a more direct Greenland connection comes from a separate source. According to a long-time Hong Kong publisher and financial analyst, the Hong Kong parent of the Greenland entity has been directly targeted by a lawsuit in that city.
Both individuals involved are related to the company’s chairman, Cai Suixin 蔡穗新. They are his father, Cai Mingzhi 蔡明志, and his sister, Cai Suirong 蔡穗榕. Both have long had a number of positions in multiple Group companies. Cai senior is, or at least used to be, one of the main ultimate owners of the company, together with his son. Cai Mingzhi’s political contacts in Guangzhou province reportedly opened many doors for General Nice, a (mostly) private player in a state-dominated sector. For more on the history of General Nice, see my General Nice backgrounder.
The List lists people and companies that have failed to comply with court judgements. Its purpose is to induce compliance by public shaming. For example, a sample of it was once displayed for two weeks on an enormous screen at Changsha railway station. It’s searchable online. An evolving (and quite Orwellian) ‘social credit’ system is expected to impose a range of penalties on those on the wrong side of it, and that includes denizens of the List like the Cais. If they don’t remove themselves from it on time, they could be prevented from buying plane tickets, to mention just one possible consequence. I’ve written about the List of Dishonest Persons before: one noted member of it is Huang Nubo 黄怒波, everyone’s favourite poet-tycoon-mountaineer, known for his attempts to buy land in Iceland and Norway. Since I wrote that almost three years ago, old Huang Nubo List entries have been removed, suggesting he has perhaps paid up, but he has been honoured with a new one, over a new dispute that need not concern us here.
The judgements that landed the Cais on the list concern, among other companies, General Nice (Tianjin) Industry Co., Ltd (俊安（天津）实业有限公司). One of the creditors is an Agricultural Bank of China branch. The sums General Nice (and General Nice-linked) companies have failed to disburse as ordered by the courts total more than 70m yuan. Of course, it is possible that all those outstanding amounts have just been paid, but the online version of the List hasn’t been updated yet.
In a separate development, Target, a Hong Kong publication by venerable Hong Kong financial analyst, journalist, editor, restaurant reviewer and poet Raymonde Sacklyn, reported in late April on a lawsuit brought against General Nice Development Ltd (俊安发展有限公司) and all three Cais by ICBC, over a mortgage and a guarantee. General Nice Development, another Group company, is the ultimate owner of the Jersey entity that owns the Greenland company that owns the Isua mine.
I’ve mentioned worrying developments about General Nice (while still omitting a few) in several posts, starting with that ‘backgrounder‘ in 2015, months after the company entered the Greenland game. The Cais’ group has kept afloat despite all these. In a surprising move, last year they attempted to purchase a derelict naval base in Greenland, only to be blocked by the Danish intervention, as leaked to Defence Watch and (months later) Reuters. In my previous long-ish read on China and Greenland, I speculated that the attempt to buy the base, despite hardly making any obvious business sense, catered to a Chinese state interest in it, perceived or explicit. The Isua mine purchase can also be read in that context: if questionable as a commercial investment, sitting on the licence can make General Nice useful in the eyes of state entities that would like to see the Greenland mine stay in Chinese hands.
This blog has featured poetry in the past, namely that of Huang Nubo, a celebrated poet under the pen name Luo Ying 骆英. I have quoted his verses about Château Lafite, about stockpiling condoms. I have mentioned how he flies first-class because that helps him write, and hope he’ll make it out of the List of Dishonest Persons before the Social Credit System can prevent him from flying. With such precedent, I feel obliged to quote from Sacklyn’sserendipitously-titled poem The Loan:
The body dies and, then, putrefies:
Nature decides the timeframe of this glorious fate.
Man bemoans his ultimate demise,
Fearing the unknown; the darkness; and, the empty plate[.]