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Trump Sanctions Flag A Harsh Reality—PRC and Canadian Elite Ties Underwrite Fentanyl Vulnerability

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By Garry Clement

Former Senior Mountie Argues Geopolitics of Ottawa’s Relations with Beijing Loom Behind Trump Threats

The threat of a 25% tariff on goods from Mexico and Canada, announced by President-elect Donald Trump, highlights a harsh reality: Canada’s vulnerability to fentanyl is deeply intertwined with its close ties to China.

Chris George, a government relations advisor and writer, has highlighted the Liberal Party’s connections with Chinese leadership. He notes that the party’s relationship with the Chinese Communist Party is significantly influenced by Power Corporation, the Desmarais clan’s flagship enterprise.

“The Liberal Party of Canada is inseparably tied to the Chinese Communist Party today,” George alleges, “and much of the Canadian-Chinese business relationship is driven by Power Corporation, the crown jewel of the Desmarais family fortune.”

The ties between the Liberal Party and Power Corp have allegedly become so entrenched they are virtually indistinguishable:

  • André Desmarais, son-in-law of former Prime Minister Jean Chrétien, serving as President and co-CEO of Power Corp.
  • Former Prime Ministers Paul Martin, Jean Chrétien, and Pierre Trudeau holding positions within Power Corp.
  • Jean Chrétien acting as a Power Corp. lobbyist in China.
  • John Rae, brother of former Liberal leader Bob Rae, being a long-serving senior manager.
  • Senator Peter Harder, a key advisor to Prime Minister Justin Trudeau on China, previously serving on the board of Power Financial Corporation, a subsidiary of Power Corp.

Peter Harder also served as President of the Canada-China Business Council, a business advocacy group founded in 1978 with significant support from Paul Desmarais and Power Corporation. He left the council upon his Senate appointment by Prime Minister Trudeau. The Council is now chaired by Olivier Desmarais, grandson of Paul Desmarais and Jean Chrétien. These connections are also explored in my book, Undercover: In the Shady World of Organized Crime and the RCMP.

Recent reports reveal strong ties between Chinese leaders, the People’s Republic of China, and the Premier of British Columbia. Chinese companies have been acquiring Canadian logging operations and vast tracts of farmland. In Prince Edward Island, properties are being purchased under the guise of a monastic group called Bliss and Wisdom.

Evidence suggests that China’s leadership is complicit in producing fentanyl precursors, fully aware of their shipment to Mexico—and now Canada. It is widely suspected that fentanyl money laundering is facilitated through the “black market peso exchange,” a method funneling illicit proceeds into North America. Wealthy Chinese buyers then use fentanyl profits to purchase property, while the manufacturers of precursors are paid in Chinese renminbi.

Traditional media outlets, across the political spectrum, seem to have fallen under the same spell as the Liberal Party, failing to report on these pressing issues with any legitimate objectivity.

The tariffs proposed by President-elect Trump will undoubtedly impact us all. But perhaps, by remaining silent for so long, Canada is now facing the consequences it deserves. It is time for the silent majority to hold this failing government accountable. Canada needs greater transparency, accountability, and a complete re-evaluation of its foreign and domestic policies—especially those concerning China.

Garry Clement consults with corporations on anti-money laundering, contributed to the Canadian academic text Dirty Money, and wrote Undercover, In the Shady World of Organized Crime and the RCMP

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Zelenskyy Says He Still Wants To Sign Mineral Deal With US After Oval Office Spat With Trump

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From the Daily Caller News Foundation

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Ukrainian President Volodymyr Zelenskyy said Friday on Fox News that he still wants to sign the mineral deal with the United States despite his public blowup at the Oval Office.

During a gathering in the Oval Office on Friday with President Donald Trump, Vice President JD Vance, and other officials to discuss the U.S. deal with Ukraine over its minerals, Trump and Vance called out Zelenskyy’s behavior after he publicly criticized the U.S. for not attempting to halt Russia. Following the heated discussion, Zelenskyy appeared on “Special Report with Bret Baier” and told the host that he still believes the deal should be signed, adding he wanted to understand the security guarantees the U.S. would provide.

“United States wanted this deal very much, and we’ve been not against this deal, but we wanted to understand what parts in security guarantees will take this deal and what next steps. Just again, to understand for our people, during the war, what you don’t like, even sometimes hate? Surprises,” Zelenskyy said.

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“It’s understandable. Many terrible things this war brought to us. So we don’t, we don’t want any surprises. Yes, that’s why we want to be very fair with our partners. I think this deal was prepared by teams. It was not simple during [the] weeks, and now it’s ready. I think that they have to sign. The countries have to sign. The ministers have to sign. That’s it. I don’t know when they will do it. It depends on the American side.”

Multiple sources on Tuesday said that the U.S. had struck a deal with Ukraine to jointly develop mineral extraction projects within the nation.

WATCH:

By Thursday, Trump’s Treasury Secretary Scott Bessent told Fox News that “the deal is done,” adding it was a “win-win” for all parties and would be signed by Friday at the White House. However, following Zelenskyy’s clash with the president and vice president, the White House told Daily Caller White House correspondent Reagan Reese that “nothing will be signed.”

Baier went on to ask Zelenskyy if the deal did not include security provisions, to which the Ukrainian president said that it was part of the “infrastructure.” Zelenskyy further said that Trump had said Russian President Vladimir Putin would not be able to enter certain mineral production territories. However, the Ukrainian president disagreed with the decision, saying he had told Trump not to “trust Putin.”

“I said to him that we had more than two, more than 20 companies, American companies, big companies on the territory of Ukraine. We had offices, even on temporarily occupied territories. For Putin, it doesn’t matter,” Zelenskyy said. “It’s a European company or Ukraine. It doesn’t matter. He just came and occupied it.”

“That’s what I said. I think this is a great idea [on] how to strengthen Ukraine and how to make business between two countries, how to make additional jobs for two countries. But it’s not just this will not save us,” Zelenskyy said.

After Zelenskyy left the White House, Trump took to Truth Social, posting that he had determined Zelenskyy is “not ready for Peace if America is involved, because he feels our involvement gives him a big advantage in negotiations.”

“I don’t want advantage, I want PEACE. He disrespected the United States of America in its cherished Oval Office. He can come back when he is ready for Peace,” Trump wrote.

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Trump and fentanyl—what Canada should do next

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From the Fraser Institute

By Ross McKitrick

During the Superbowl, Doug Ford ran a campaign ad about fearlessly protecting Ontario workers against Trump. I suppose it’s effective as election theatre; it’s intended to make Ontarians feel lucky we’ve got a tough leader like Ford standing up to the Bad Orange Man. But my reaction was that Ford is lucky to have the Bad Orange Man creating a distraction so he doesn’t have to talk about Ontario’s high taxes, declining investment, stagnant real wages, lengthening health-care wait times and all the other problems that have gotten worse on his watch.

President Trump’s obnoxious and erratic rhetoric also seems to have put his own advisors on the defensive. Peter Navarro, Kevin Hassett and Howard Lutnick have taken pains to clarify that what we are dealing with is a “drug war not a trade war.” This is confusing since many sources say that Canada is responsible for less than one per cent of fentanyl entering the United States. But if we are going to de-escalate matters and resolve the dispute, we should start by trying to understand why they think we’re the problem.

Suppose in 2024 Trump and his team had asked for a Homeland Security briefing on fentanyl. What would they have learned? They already knew about Mexico. But they would also have learned that while Canada doesn’t rival Mexico for the volume of pills being sent into the U.S., we have become a transnational money laundering hub that keeps the Chinese and Mexican drug cartels in business. And we have ignored previous U.S. demands to deal with the problem.

Over a decade ago, Vancouver-based investigative journalist Sam Cooper unearthed shocking details of how Asian drug cartels backed by the Chinese Communist Party turned British Columbia’s casinos into billion-dollar money laundering operations, then scaled up from there through illicit real estate schemes in Vancouver and Toronto. This eventually triggered the 2022 Cullen Commission, which concluded, bluntly, that a massive amount of drug money was being laundered in B.C., that “the federal anti–money laundering [AML] regime is not effective,” that the RCMP had shut down what little AML capacity it had in 2012 just as the problem was exploding in scale, and that government officials have long known about the problem but ignored it.

In 2023 the Biden State Department under Anthony Blinken told Canada our fentanyl and money laundering control efforts were inadequate. Since then Canada’s border security forces have been shown to be so compromised and corrupt that U.S. intelligence agencies sidelined us and stopped sharing information. The corruption went to the top. A year ago Cameron Ortis, the former head of domestic intelligence at the RCMP, was sentenced to 14 years in prison after being convicted of selling top secret U.S. intelligence to money launderers tied to drugs and terrorism to help them avoid capture.

In September 2024 the Biden Justice Department hit the Toronto-Dominion Bank with a $3 billion fine for facilitating $670 million in money laundering for groups tied to transnational drug trafficking and terrorism. Then-attorney general Merrick Garland said “TD Bank created an environment that allowed financial crime to flourish. By making its services convenient for criminals, it became one.”

Imagine the outcry if Trump had called one of our chartered banks a criminal organization.

We are making some progress in cleaning up the mess, but in the process learning that we are now a major fentanyl manufacturer. In October the RCMP raided massive fentanyl factories in B.C. and Alberta. Unfortunately there remain many gaps in our enforcement capabilities. For instance, the RCMP, which is responsible for border patrols between ports of entry, has admitted it has no airborne surveillance operations after 4 p.m. on weekdays or on weekends.

The fact that the prime minister’s promise of a new $1.3-billion border security and anti-drug plan convinced Trump to suspend the tariff threat indicates that the fentanyl angle wasn’t entirely a pretext. And we should have done these things sooner, even if Trump hadn’t made it an issue. We can only hope Ottawa now follows through on its promises. I fear, though, that if Ford’s Captain Canada act proves a hit with voters, the Liberals may distract voters with a flag-waving campaign against the Bad Orange Man rather than confront the deep economic problems we have imposed on ourselves.

A trade dispute appears inevitable now that Trump has signaled the 25 percent tariffs are back on. The problem is knowing whom to listen to since Trump is openly contradicting his own economic team. Trump’s top trade advisor, Peter Navarro, has written that the U.S. needs to pursue “reciprocity,” which he defines as other countries not charging tariffs on U.S. imports any higher than the U.S. charges. In the Americans’ view, U.S. trade barriers are very low and everyone else’s should be, too—a stance completely at odds with Trump’s most recent moves.

Whichever way this plays out Canada has no choice but to go all-in on lowering the cost of doing business here, especially in trade-exposed sectors such as steel, autos, manufacturing and technology. That starts with cutting taxes including carbon-pricing and rolling back our costly net-zero anti-energy regulatory regime. In the coming election campaign, that’s the agenda we need to see spelled out.

How much easier it will be instead for Canadian politicians to play the populist hero with vague anti-Trump posturing. But that would be poor substitute for a long overdue pro-Canadian economic growth agenda.

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