Business
U.S. ‘Losing Faith’ in Canada’s Ability to Combat Industrial-Scale Fentanyl
BC Mayor Warns of Asian Organized Crime’s Surprising Access to Canada’s Political Class, Echoing US Agency Concerns
In a high-level meeting in 2023—one participant representing the head of state of the world’s most powerful nation, the other a popular small-town mayor in British Columbia—candid warnings emerged about Canada’s capacity to confront the industrial-scale production of fentanyl. Mayor Brad West, a longstanding critic of transnational drug networks in his province, recalls Secretary of State Antony Blinken stressing that Washington believes Beijing is effectively weaponizing fentanyl against North Americans—and that Canada stands out as a worrisome weak link in the global supply chain.
On Tuesday, Prime Minister Justin Trudeau’s government moved to address growing U.S. alarm by appointing former RCMP deputy commissioner Kevin Brosseau as Canada’s new “fentanyl czar.” Announced as part of an agreement to forestall potential American tariffs in a tense trade dispute, the position mandates “accelerating Canada’s ongoing work to detect, disrupt, and dismantle the fentanyl trade,” according to the Prime Minister’s Office. Brosseau, who most recently served as deputy national security and intelligence adviser to Trudeau, will work closely with U.S. agencies to tackle a crisis that has claimed tens of thousands of lives across North America. Still, questions remain about whether he has the standing in Washington—and the authority in Ottawa—to enact meaningful reforms.
West, reflecting on his encounter with Blinken, doubts that incremental measures will suffice. He argues that only bold legislative change, coupled with a willingness to challenge entrenched legal barriers, can dispel the U.S. government’s unease over Canada’s approach. “Secretary Blinken specifically noted the lack of a RICO-style law in Canada,” West said. “He talked about how, in the United States, that law had been used to take down large portions of the mafia. Then he looked at us—one of America’s closest allies—and saw a very concerning weak link.”
According to West, Blinken pointed to China’s role in funneling precursor chemicals into fentanyl labs. He warned that China’s government, if inclined, could stem the flow but has little interest in doing so. “He was incredibly candid and very serious about the threat fentanyl poses to North America,” West recalled. “He confirmed the connection between the Chinese Communist Party, the triads, and the Mexican cartels, telling me these groups are working together—and it’s Canada where they’re finding a safe operating base.”
West says American frustration revolves around high-profile law enforcement stumbles in Canada, notably the E-Pirate investigation into Silver International, an alleged underground bank in Richmond, B.C., believed to have laundered more than a billion dollars a year for global syndicates. Touted as a signal that Canadian authorities could clamp down on transnational money laundering, the case nevertheless collapsed with no convictions. “He expressed genuine dismay that we haven’t secured meaningful convictions,” West said, paraphrasing Blinken. “When our most prominent laundering case ends with zero prison time, you can see why the Americans are alarmed.”
Blinken also conveyed to West that U.S. agencies have grown hesitant to share certain intelligence with their Canadian counterparts.
“He told me that U.S. intelligence and law enforcement are withholding some evidence because they don’t believe we’ll act on it,” West explained. “They’ve lost confidence.”
West added that in ongoing communications, he has learned American officials are shocked that major figures in Asian organized crime “seem to have so much access to our political class. They’re basically saying, ‘What’s going on in Canada?’”
A major concern, according to West, is how known criminals manage to appear at political events or fundraisers with little oversight.
“It’s not necessarily that politicians are complicit, but our political structures have weak guardrails,” West said. “The Americans see pictures of transnational criminals mingling at official gatherings and find it baffling.”
West insists that Canada must enact a legal framework akin to the U.S. Racketeer Influenced and Corrupt Organizations (RICO) Act to truly “detect, disrupt, and dismantle” the fentanyl trade. “We don’t have anything like it, and until we do, I worry the new czar’s hands could be tied by the legal status quo,” West said. “Ottawa might resist, but we need it. We should have enacted it yesterday.”
He also decries what he calls “egregious rulings” that free major traffickers or launderers on technicalities. West cites a prominent British Columbia case in which a suspect found with more than 27,000 fentanyl pills was released because a police dog had not fully performed its required sitting motion before searching a vehicle. “When a decision like that happens, we’re letting criminals exploit minutiae while countless people die,” he said. “We need a government that has the courage to challenge those judicial outcomes.”
In pursuit of that goal, West is willing to suggest the targeted use of the notwithstanding clause, a rare constitutional tool allowing governments to override parts of the Charter of Rights and Freedoms for up to five years. Typically employed in language or education disputes, it has scarcely been used in criminal proceedings. “When the Charter is being weaponized by sophisticated organizations, the government should consider all tools,” he insisted. “The right of Canadians not to be killed by a drug of this scale ought to supersede a procedural glitch.”
The severity of the fentanyl crisis in British Columbia, which has seen the majority of Canada’s overdose deaths, offers a striking backdrop for West’s urgings. He emphasizes that the torrent of precursor chemicals from China has supercharged local labs, embedding crime syndicates in global narcotics pipelines. Profits from these vast operations, in his words, flow through real estate, casinos, and underground banks with little interference.
Whether Ottawa has the political will to implement measures as sweeping as a RICO-style statute or invoke the notwithstanding clause remains uncertain. Both actions would require confronting powerful interests and explaining why existing laws have failed to secure convictions against top offenders. But West argues that mounting American impatience has changed the equation. “This is no longer just a Canadian domestic issue,” he said. “Secretary Blinken made it clear that the Biden administration sees fentanyl as an existential threat. They’re building a global coalition and need Canada fully on board. If we don’t show real progress, the U.S. will protect itself by any means—tariffs or otherwise.”
“People have been calling for something like RICO in Canada for years,” West added. “Silver International was the textbook illustration of why we need it. We had it all—massive money laundering, triads with direct links to Mexican cartels tied to fentanyl labs—and it collapsed because our system couldn’t handle a case of that complexity. That can’t keep happening, or else we’ll remain the hub of a deadly trade.”
West also revealed he would have accepted the fentanyl czar position himself if asked. “I love being mayor, but this is one of the biggest challenges facing our country,” he said. “I’d pour my heart into it. It demands relentless follow-through: legislation, expanded police powers, educating the public, and yes, taking on the courts if necessary.”
Whether Brosseau wields enough clout remains to be seen. West hopes the appointment signals a turning point from what he calls “a fragmented, complacent approach” to one that confronts the crisis on all fronts. “I’ve seen too many half-measures,” he said. “But maybe this time it’ll be different. The Americans have made their position crystal clear, and we need to demonstrate that we can protect ourselves. Otherwise, we fail both our citizens and our closest ally.”
West still recalls Blinken’s direct plea: “He basically said, ‘We need a partner we can trust, one that can disrupt these networks and secure convictions,’” West noted. “If Canada doesn’t step up, I believe the Americans will respond in ways that damage our relationship—and meanwhile, we’ll continue losing people to a drug that’s tearing families apart. We just can’t let that happen.”
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From the Frontier Centre for Public Policy
Scott McGregor warns that Chinese hybrid warfare is no longer hypothetical—it’s unfolding in Canada now. TD Bank’s closure of CCP-linked accounts highlights the rising infiltration of financial interests. From cyberattacks to guanxi-driven influence, Canada’s institutions face a systemic threat. As banks sound the alarm, Ottawa dithers. McGregor calls for urgent, whole-of-society action before foreign interference further erodes our sovereignty.
Chinese hybrid warfare isn’t coming. It’s here. And Canada’s response has been dangerously complacent
The recent revelation by The Globe and Mail that TD Bank has closed accounts linked to pro-China groups—including those associated with former Liberal MP Han Dong—should not be dismissed as routine risk management. Rather, it is a visible sign of a much deeper and more insidious campaign: a hybrid war being waged by the Chinese Communist Party (CCP) across Canada’s political, economic and digital spheres.
TD Bank’s move—reportedly driven by “reputational risk” and concerns over foreign interference—marks a rare, public signal from the private sector. Politically exposed persons (PEPs), a term used in banking and intelligence circles to denote individuals vulnerable to corruption or manipulation, were reportedly among those flagged. When a leading Canadian bank takes action while the government remains hesitant, it suggests the threat is no longer theoretical. It is here.
Hybrid warfare refers to the use of non-military tools—such as cyberattacks, financial manipulation, political influence and disinformation—to erode a nation’s sovereignty and resilience from within. In The Mosaic Effect: How the Chinese Communist Party Started a Hybrid War in America’s Backyard, co-authored with Ina Mitchell, we detailed how the CCP has developed a complex and opaque architecture of influence within Canadian institutions. What we’re seeing now is the slow unravelling of that system, one bank record at a time.
Financial manipulation is a key component of this strategy. CCP-linked actors often use opaque payment systems—such as WeChat Pay, UnionPay or cryptocurrency—to move money outside traditional compliance structures. These platforms facilitate the unchecked flow of funds into Canadian sectors like real estate, academia and infrastructure, many of which are tied to national security and economic competitiveness.
Layered into this is China’s corporate-social credit system. While framed as a financial scoring tool, it also functions as a mechanism of political control, compelling Chinese firms and individuals—even abroad—to align with party objectives. In this context, there is no such thing as a genuinely independent Chinese company.
Complementing these structural tools is guanxi—a Chinese system of interpersonal networks and mutual obligations. Though rooted in trust, guanxi can be repurposed to quietly influence decision-makers, bypass oversight and secure insider deals. In the wrong hands, it becomes an informal channel of foreign control.
Meanwhile, Canada continues to face escalating cyberattacks linked to the Chinese state. These operations have targeted government agencies and private firms, stealing sensitive data, compromising infrastructure and undermining public confidence. These are not isolated intrusions—they are part of a broader effort to weaken Canada’s digital, economic and democratic institutions.
The TD Bank decision should be seen as a bellwether. Financial institutions are increasingly on the front lines of this undeclared conflict. Their actions raise an urgent question: if private-sector actors recognize the risk, why hasn’t the federal government acted more decisively?
The issue of Chinese interference has made headlines in recent years, from allegations of election meddling to intimidation of diaspora communities. TD’s decision adds a new financial layer to this growing concern.
Canada cannot afford to respond with fragmented, reactive policies. What’s needed is a whole-of-society response: new legislation to address foreign interference, strengthened compliance frameworks in finance and technology, and a clear-eyed recognition that hybrid warfare is already being waged on Canadian soil.
The CCP’s strategy is long-term, multidimensional and calculated. It blends political leverage, economic subversion, transnational organized crime and cyber operations. Canada must respond with equal sophistication, coordination and resolve.
The mosaic of influence isn’t forming. It’s already here. Recognizing the full picture is no longer optional. Canadians must demand transparency, accountability and action before more of our institutions fall under foreign control.
Scott McGregor is a defence and intelligence veteran, co-author of The Mosaic Effect: How the Chinese Communist Party Started a Hybrid War in America’s Backyard, and the managing partner of Close Hold Intelligence Consulting Ltd. He is a senior security adviser to the Council on Countering Hybrid Warfare and a former intelligence adviser to the RCMP and the B.C. Attorney General. He writes for the Frontier Centre for Public Policy.
MxM News
Quick Hit:
Major automakers are urging Congress to intervene and halt California’s aggressive plan to eliminate gasoline-only vehicles by 2035. With the Biden-era EPA waiver empowering California and 11 other states to enforce the rule, automakers warn of immediate impacts on vehicle availability and consumer choice. The U.S. House is preparing for a critical vote to determine if California’s sweeping environmental mandates will stand.
Key Details:
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Automakers argue California’s rules will raise prices and limit consumer choices, especially amid high tariffs on auto imports.
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The House is set to vote this week on repealing the EPA waiver that greenlit California’s mandate.
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California’s regulations would require 35% of 2026 model year vehicles to be zero-emission, a figure manufacturers say is unrealistic.
Diving Deeper:
The Alliance for Automotive Innovation, representing industry giants such as General Motors, Toyota, Volkswagen, and Hyundai, issued a letter Monday warning Congress about the looming consequences of California’s radical environmental regulations. The automakers stressed that unless Congress acts swiftly, vehicle shipments across the country could be disrupted within months, forcing car companies to artificially limit sales of traditional vehicles to meet electric vehicle quotas.
California’s Air Resources Board rules have already spread to 11 other states—including New York, Massachusetts, and Oregon—together representing roughly 40% of the entire U.S. auto market. Despite repeated concerns from manufacturers, California officials have doubled down, insisting that their measures are essential for meeting lofty greenhouse gas reduction targets and combating smog. However, even some states like Maryland have recognized the impracticality of California’s timeline, opting to delay compliance.
A major legal hurdle complicates the path forward. The Government Accountability Office ruled in March that the EPA waiver issued under former President Joe Biden cannot be revoked under the Congressional Review Act, which requires only a simple Senate majority. This creates uncertainty over whether Congress can truly roll back California’s authority without more complex legislative action.
The House is also gearing up to tackle other elements of California’s environmental regime, including blocking the state from imposing stricter pollution standards on commercial trucks and halting its low-nitrogen oxide emissions regulations for heavy-duty vehicles. These moves reflect growing concerns that California’s progressive regulatory overreach is threatening national commerce and consumer choice.
Under California’s current rules, the state demands that 35% of light-duty vehicles for the 2026 model year be zero-emission, scaling up rapidly to 68% by 2030. Industry experts widely agree that these targets are disconnected from reality, given the current slow pace of electric vehicle adoption among the broader American public, particularly in rural and lower-income areas.
California first unveiled its plan in 2020, aiming to make at least 80% of new cars electric and the remainder plug-in hybrids by 2035. Now, under President Donald Trump’s leadership, the U.S. Transportation Department is working to undo the aggressive fuel economy regulations imposed during former President Joe Biden’s term, offering a much-needed course correction for an auto industry burdened by regulatory overreach.
As Congress debates, the larger question remains: Will America allow one state’s left-wing environmental ideology to dictate terms for the entire country’s auto industry?
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