Canada Is Losing the Battle for Its Own Sovereignty: Garry Clement

Elite Capture, Foreign Interference, and Crime: Canada Must Confront the Threat Within

Canada’s political landscape has long been characterized by a balance between geopolitical alliances and domestic priorities. But in recent years, this balance has been upended by our country’s failure to respond decisively to China’s expanding political interference, the rise of foreign-influenced elites, and the unchecked growth of transnational organized crime. What’s at stake is nothing less than our national sovereignty—and a growing perception that, through complacency, Canada is not only eroding its own democratic foundations but playing directly into the hands of U.S. strategic interests.

This week, the simmering threat of foreign interference exploded into public view. Liberal MP Paul Chiang resigned as a candidate after reports emerged he told Chinese-language journalists that his political rival—Conservative candidate Joe Tay—could be delivered to the Chinese Consulate in Toronto in exchange for a bounty. Tay, a Canadian citizen wanted under Hong Kong’s National Security Law, had reportedly been targeted by Beijing for his pro-democracy advocacy.

Chiang apologized, calling his comment a lapse in judgment. But that wasn’t enough. It took public outrage and confirmation that the RCMP was “looking into” the matter for Liberal leader Mark Carney to accept Chiang’s resignation. Until then, Carney stood by his candidate, calling the episode a “teachable moment.” This is not decisive leadership. It’s damage control—and yet another sign of our political establishment’s unwillingness to confront China’s influence head-on.

Canada’s relationship with China is complex, touching trade, diplomacy, and immigration. But beneath the surface lies a deeper and more troubling dynamic: China’s strategic infiltration of Canadian politics and institutions. From covert funding of candidates to media manipulation, the fingerprints of Beijing’s United Front activities are increasingly visible. Yet for years, the Canadian government has turned a blind eye to the encroachments—ignoring repeated warnings from CSIS and other allied agencies.

This isn’t new. The 1990s “Sidewinder Report,” which outlined CCP-linked influence operations, was buried for political reasons. That decision planted the seeds of today’s vulnerability. We are reaping the consequences in 2025.

The recent Hogue inquiry offered glimpses of how deeply foreign influence has penetrated Ottawa, but it stopped short of naming names—proof, if more was needed, of how compromised the system has become. The power and reach of Beijing-linked elites in Canadian business, real estate, and politics have only grown. Elite capture is no longer theoretical—it’s operational.

The phenomenon of elite capture—the increasing influence of foreign-backed elites within domestic politics—is a growing concern. In Canada, the reach of Chinese capital, particularly in sectors like real estate, technology, and education, has allowed Beijing to gain a strategic foothold. Elite figures and business magnates, some of whom have personal or financial interests tied to China, wield significant influence over Canada’s economic and political trajectory.

The cozy relationship between business elites and Chinese state-backed entities has led to a situation where certain sectors of Canadian society have become complicit in undermining Canadian autonomy. Politicians, former diplomats, and business leaders with links to China may inadvertently or intentionally shape national policy in ways that benefit Chinese interests rather than Canadian ones. This dynamic fuels growing fears that Canada’s ability to chart an independent course is being quietly eroded.

One of the most significant areas where Canada’s complacency is evident is in its failure to adequately address transnational organized crime and money laundering. Chinese criminal syndicates are known to be deeply embedded within Canada, particularly in areas such as drug trafficking, human trafficking, and money laundering. The 2019 report from the Canadian Senate on money laundering revealed that vast sums of illicit capital from China were flowing through Canadian financial institutions, laundering money and strengthening the financial reach of criminal organizations linked to the Chinese state.

Despite mounting evidence of these activities, Canada’s efforts to tackle them have been sluggish and fragmented. Law enforcement agencies, such as the RCMP, lack the resources and authority to deal effectively with these international crime syndicates, while financial regulators have been slow to implement robust policies to track and block illicit financial flows. Canada’s inaction on this front is particularly concerning, given the growing risk of these criminal enterprises undermining the integrity of Canadian institutions.

This inability to confront the challenges posed by transnational organized crime and money laundering is further compounded by Canada’s reluctance to confront China directly. The result is a system that facilitates the flow of illicit funds while simultaneously providing China with a safe haven for financial and political maneuvering.

While Canada’s complacency is damaging in its own right, it also plays into the hands of the United States, which has been increasingly vocal about China’s growing influence in the Western hemisphere. Washington’s strategic goals, particularly its efforts to contain China’s global rise, are well-documented, and the U.S. has increasingly sought to rally its allies—especially Canada—into its fold.

By not taking action against China’s political interference, elite capture, and organized crime operations, Canada is inadvertently playing into the broader geopolitical struggle between the U.S. and China. While the U.S. is strengthening its own policies to confront Chinese influence on multiple fronts, Canada’s passive approach is weakening its own position in the global power dynamic.

This unintentional alignment with U.S. interests has broader implications for Canada’s autonomy. In the absence of strong action against China, Canada risks being drawn into a broader U.S.-led coalition that seeks to isolate Beijing further. This complicates Canada’s diplomatic relationships.

Canada is at a crossroads. The complacency surrounding China’s political interference, elite capture, and criminal activities is not just a failure of leadership—it is a betrayal of the values that Canadians hold dear. In failing to confront these issues head-on, Canada risks losing its sovereignty, its ability to chart an independent course, and its position on the world stage.

At a time when global geopolitical dynamics are rapidly shifting, it is critical for Canada to assert its independence and take a more active role in safeguarding its political integrity. The time for complacency has passed. Canada must act swiftly to address the malign influence of foreign powers within its borders, crack down on illicit financial flows, and protect its national interests. If it fails to do so, it will only continue to drift into the orbit of the U.S. agenda—rather than asserting its own voice in the global conversation.

Time to hold our political leaders to account for the interests of future generations!

Former senior RCMP officer 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