GAI President Peter Schweizer joined Larry Kudlow on Fox Business to discuss China’s deep involvement in fentanyl trafficking, money laundering, and rare earth dependency. Schweizer exposed how thousands of Chinese nationals in Mexico work with drug cartels, while Chinese state banks launder cartel money.
Schweizer emphasized that China’s promises to restrict precursor chemicals are meaningless given its seven years of deception. The discussion expanded to China’s leverage over critical supply chains, its role in financing Russia’s war, and the failure to uphold the 2020 trade deal. Schweizer praised Trump’s strategic recognition of the China–Russia alliance and argued that the U.S. must stop “giving away the store” to Beijing.
“Their involvement in fentanyl is not just these precursor chemicals. There are, according to our DEA, 2,000 Chinese nationals in northern Mexico that effectively are serving as chemists providing support to the drug cartels,” Schweizer said.
“The pill presses that the cartels use to produce this poison and smuggle it across the border, those pill presses are made in China. And again, according to the DEA, those are sold by Chinese companies to the drug cartels at cost. And then there’s a whole issue of the money laundering. The money laundering for the drug cartels used to be done in Latin American banks. It’s now Chinese state-owned banks,” he continued.
“So, this is really a toss-off. This really does nothing about the issue. And I hope that the president keeps pushing hard on it because Joe Biden certainly didn’t do that. And we need to we need to deal with China on this issue very firmly,” Schweizer concluded.