Belmond Hotel, owned by 
Zhang Zhengrong, overlooks Palau’s Malakal Harbor, which will be upgraded by the US military next year so that US warships can enter the Pacific island nation’s narrow channels and dock there. The wharf will be expanded and elevated. There will be a new logistics hub with a warehouse, enabling US Navy ships to refuel, reload and rearm.
US and Palauan officials fear Belmond could house electronic surveillance devices aimed at visiting US warships.
Zhang bought the partly built Belmond for $3 million during the COVID-19 pandemic using the proceeds from his construction businesses.
According to the Palau national security brief, however, Zhang has ties to the Fujianese mafia — known for its global reach — and his money comes from running online scam operations in Southeast Asia.
Zhang denied any involvement in the mafia or scam operations. In December, however, police raided a suspected illegal online gambling and scamming operation in one of his four Palau properties. They arrested one person and several others fled. Zhang said he was merely the landlord.
Zhang said he learned of the Belmond from Siegfried Nakamura, a local lawyer whose family owned the hotel. Nakamura was elected to Palau’s Senate in November.
Nakamura is one of at least three Palauan politicians who allegedly received illegal campaign donations from Zhang. (Foreigners are not allowed to make campaign donations in Palau.)
Zhang said that he gave Nakamura $10,000 in cash but that it was for legal services. It’s unclear whether authorities investigated. Neither Nakamura nor Zhang was charged.
Zhang’s alleged illegal activity, plus the hotel’s proximity to the port, gives US, Palauan and Taiwanese officials cause for concern.
The biggest risk is electronic surveillance. That could be monitoring US Navy communications or taking acoustic signatures from US ships that can be used for torpedo targeting. If satellites were disabled — something many military analysts say would be likely in a conflict between the US and China — the hotel could be used to target the port.
China is trying to create a bunch of options for later. Palau is trying to chip away at China’s options.
In April, Zhang flew from Hong Kong to Koror, Palau, but was sent back after finding out he’d been added to Palau’s rapidly growing list of undesirable aliens.
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washingtonpost.com/world/2025/07/
Zhang Zhengrong, overlooks Palau’s Malakal Harbor, which will be upgraded by the US military next year so that US warships can enter the Pacific island nation’s narrow channels and dock there. The wharf will be expanded and elevated. There will be a new logistics hub with a warehouse, enabling US Navy ships to refuel, reload and rearm.
US and Palauan officials fear Belmond could house electronic surveillance devices aimed at visiting US warships.
Zhang bought the partly built Belmond for $3 million during the COVID-19 pandemic using the proceeds from his construction businesses.
According to the Palau national security brief, however, Zhang has ties to the Fujianese mafia — known for its global reach — and his money comes from running online scam operations in Southeast Asia.
Zhang denied any involvement in the mafia or scam operations. In December, however, police raided a suspected illegal online gambling and scamming operation in one of his four Palau properties. They arrested one person and several others fled. Zhang said he was merely the landlord.
Zhang said he learned of the Belmond from Siegfried Nakamura, a local lawyer whose family owned the hotel. Nakamura was elected to Palau’s Senate in November.
Nakamura is one of at least three Palauan politicians who allegedly received illegal campaign donations from Zhang. (Foreigners are not allowed to make campaign donations in Palau.)
Zhang said that he gave Nakamura $10,000 in cash but that it was for legal services. It’s unclear whether authorities investigated. Neither Nakamura nor Zhang was charged.
Zhang’s alleged illegal activity, plus the hotel’s proximity to the port, gives US, Palauan and Taiwanese officials cause for concern.
The biggest risk is electronic surveillance. That could be monitoring US Navy communications or taking acoustic signatures from US ships that can be used for torpedo targeting. If satellites were disabled — something many military analysts say would be likely in a conflict between the US and China — the hotel could be used to target the port.
China is trying to create a bunch of options for later. Palau is trying to chip away at China’s options.
In April, Zhang flew from Hong Kong to Koror, Palau, but was sent back after finding out he’d been added to Palau’s rapidly growing list of undesirable aliens.
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washingtonpost.com/world/2025/07/
