Today, we welcome Sam Cooper, an author and journalist based in Ottawa.
He came in to talk about his reporting on PRC political and economic warfare, its impact on Canada and the United States, and how those tools are being used worldwide, including Taiwan, to undermine the rule of law and each nation's sovereignty.
This episode goes fast and has a lot of great information on how China sets conditions for winning without fighting.
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Transcript:
00:00:00 JACK GAINES
Today, we welcome Sam Cooper, author and journalist based out of Ottawa. He came in to talk about his reporting on PRC political and economic warfare and its impact on Canada and the United States and how those tools are being used around the world, including Taiwan, to undermine the rule of law and each nation's sovereignty. This episode goes fast and has a lot of great information on how China sets conditions for winning without fighting. So, let's get started.
00:00:27 SAM COOPER
In the course of reporting, I discovered the compound of Tiger Yuan, an individual that was directly investigated in this Chinese underground banking story, had the most weapons in Western Canada, if not across Canada, for a citizen. And so, when my sources said this person is or was PLA, this person has connectivity to the highest levels of organized crime. And this person is very politically connected, and their activity outside of organized crime appears to be directing Chinese state -friendly people what to do in Western Canada. That's when I really started to dig into and understand the Chinese interference story, starting on the West Coast and then moving across. Literally, I started reporting from Ottawa. That's when I got into the political side of it.
00:01:20 JACK GAINES
So how many weapons are you talking about? And are you talking about small arms, large arms, tactical, technicals? What was it that you were able to find?
00:01:29 SAM COOPER
I'll start with the big picture. I was directed to a compound in Chilliwack, British Columbia. This is very near the United States -Washington state border. It's just outside of Vancouver, and it was a compound of tremendous luxury. In an underground massive parking lot, there were about 80 luxury vehicles. that indicated huge-scale money laundering. There were American military jeeps and vintage machine guns. There was a fire truck. There was a diesel-type rig. There's Ferraris. And so, I was told that this person has vaults of restricted firearms. So, we're talking tactical weapons that you hold against your shoulder and extend your arm out as far as it can.
00:02:16 JACK GAINES
Yeah, long guns.
00:02:17 SAM COOPER
Right. Long guns. These are military-style weapons. I can't say they're AK -47s or Noriko. He didn't let you in there to mark all the numbers and he didn't give you the inventory sheets.
00:02:24 JACK GAINES
let you in there to mark all the numbers and he didn't give you the inventory sheets.
00:02:29 SAM COOPER
He didn't give me the inventory sheets, but Canada has to keep a log of the weapons out there as best as it can. And in an open-source photo, you've got a gangster sort of standing downstairs beside a luxury car with a, I believe it was sort of a burp gun. And then in the back corner, you could see an open door with just a room stacked with weapons. You could literally see a vintage machine gun, one of those ones that would have a sort of stand so you can shoot out of a trench, maybe back in the 50s or 60s. And my sources said, we know that this person has the largest cache of restricted and unrestricted weapons in Western Canada. As I wrote in Willful Blindness, this is... Chapo Guzman -style wealth in a Canadian property, and it makes no sense.
00:03:19 JACK GAINES
Well, it sounds like this person is a hub for gun running and money and probably drugs. Because if he's got storehouses for weapons, that means he can rotate them out for criminal groups that are moving through the area so that no one really gets tied to a weapon if there's ever a crime committed. But it also sounds like they've got connections
00:03:47 SAM COOPER
Yeah. Well, I would say you nailed everything in your question. And to unpack that, on the organized crime side, the information is this person is literally a revered hero from the People's Liberation Army. It's not that China did well in their border assault on Vietnam. They did pretty badly. But this person, Tiger Yuan, is glorified in various Chinese language documents. military veteran, is assessed by Canadian federal police to be in charge of gangs. He would be a person that is handling Chinese mafia in Canada and giving them directions to meet some of the Chinese Communist Party's political objectives.
00:04:30 JACK GAINES
So, he's a kingpin.
00:04:31 SAM COOPER
He's a kingpin, an intelligence handler involved in organized crime at the highest level and also with the capacity to direct these high -level triads. I think we're talking about what's known as the company. This is elite China -based triads that are active running weapons and drugs sentinel around the world and yet have connections at the highest level to military and intelligence and political figures for the parties. So yes, the type of person involved in trade -based money laundering, the ability to send weapons in and out of Canada, the ability to collect weapons from... Chinese visitors who happen to buy guns in Canada and then want to get rid of them. As you said, this military veteran can be a node to move them. I'm told through police sources; this person is suspected to be involved in the Chinese police station activity. So, as you know, that would include what was exposed by the FBI in New York, where we have purported community associations that are actually running these illegal...
00:05:38 JACK GAINES
Community police stations in other countries.
00:05:41 SAM COOPER
Exactly. And these would be used to harass dissidents, to go after Xi Jinping's so -called fox hunt targets. So, Tiger Yuan would be central to that. He would be central to meeting with Chinese language journalists. And I'm told giving them directions or coaching on the type of reporting they should be doing. He would be central to types of... fundraising activities that could blend legitimate business with illegitimate business and have those monies go into Canada's political system. Well,
00:06:17 JACK GAINES
after reading your book, Willful Blindness, one thing came to me, and that is that it looks like China has successfully mixed profiteering and foreign policy so that they can successfully tie the profits from narcotics to influence and persuasion in countries to achieve their foreign policy goals. I had John Cassara on recently, and he talked about that China has probably half of the global illicit trade profit coming into it. And when people measure China, they measure its GDP. They don't measure that black economy. Because most of it goes right back out into the world to fund these illicit criminal groups that are also complicit with the PRC and the money that goes to the pockets of people willing to take the influence dollars to do what PRC wants. But it was really your book that opened that perspective. And it sounds like what you're seeing is the tuning of that process. and how they're really bringing it to bear to see how far they can go and being successful in moving a country's orbit into the PRC influence space.
00:07:37 SAM COOPER
Yeah, I agree with everything you said there, and thank you for saying that. I do think my book had a little bit of a cognitive advance in showing people that when we're speaking about the mercantilism of the People's Republic of China and the trade mixed into that, by design, I believe, is trade -based money laundering in which, of course, there are some honest tycoons or almost as honest as you can be within China's system. But there are many that have both legitimate and underground casino facilitation, capital flake facilitation, direct narcotics trafficking, weapons. But China doesn't look at those people as the government should have a distance from them. China sees those people as ones that have connections abroad, ones that have great influence in diaspora communities. And business persons that are involved in organized crime in Beijing's playbook should be used to influence politicians that are looking for votes in the diaspora.
00:08:43 JACK GAINES
Do you think that Xi Jinping and the PRC allow a certain amount of wealth and influence or affluence? in these people that are expats around the world in exchange for conducting these types of operations?
00:09:00 SAM COOPER
Yes, I think there's a lot going on, and I'm always trying to clarify my understanding, but some have coined the term strategic corruption. This is what we saw in Ukraine for years before Putin made his move. We saw the oligarchs and the tycoons, people like Semyon Mogilev ich, had great control over the Ukrainian resource industries. A person named Boris Berstein, who settled in Toronto, was a major underground banker and money launderer with connectivity to the KGB. So, we've seen this playbook in Ukraine, having people with gang connections or direct intelligence connections corrupt foreign governments and try to pave the way. And I think China is doing a bigger and even more sophisticated variation on that now, where they want people that are, as I've reported in Canada, we have major real estate developers, major portions of Vancouver and Toronto are in fact Chinese or Hong Kong money. And these big real estate developers, there's no question that Beijing has relationships with them, that they will be protected in their illegitimate business activities if they deliver objectives. to Beijing. And there's so much more going on, but yes, in a nutshell, Beijing offers protection to the highest-level criminals in the world if they will deliver political objectives wherever they are.
00:10:27 JACK GAINES
Are you seeing a cohesion of operations between them? How closely tied are they to Beijing? Or is it decentralized to where they say, look, if you build influence and you just let us know who you have contacts with, we'll let you know if we need you. Is it more of a mafia style relationship? How closely tied are they?
00:10:46 SAM COOPER
Well, that is the trillion -dollar question. I mean, I'm always trying to get my understanding. And I'm sure they don't just show you.
00:10:52 JACK GAINES
I'm sure they don't just show you. Here, here's our relationship map now. I mean, I spent a lot of time thinking about it.
00:10:55 SAM COOPER
here's our relationship map now. I mean, I spent a lot of time thinking about it. And as best as I can understand, and I'm always talking to experts to understand more. Sure. But it's not as hierarchical and rigid. I've been told that it is the most fluid. entrepreneurial system you can imagine. There's all types of competition. We have something called Guanxi, which is this very deep sort of transactional cultural relationships between people at high levels in China's system. And we have interrelationships of gangs, interrelationships of intelligence agencies. We have competition among both of those forces.
00:11:40 SAM COOPER
To boil it down, I don't think Xi Jinping is able to say, OK, mafia leader A, you're going to go to Canada, specifically Toronto, and achieve this. It's more that we have what you know is the united front system. That is, all these community groups at the end of the day have been co -opted by officials in consulates around the world so that the community groups are controlled directly by Chinese intelligence officials in embassies and consulates. And they have various levels of tasking to these community groups, who I am saying are almost exclusively involved, high -level tycoon type gang associates. And then within these United Front networks, you have intelligence handlers of the type to circle back to this BC case of this PLA veteran, Tiger Yuan, who is able to be like an area manager of legitimate and illegitimate. business activity in various regions. In my understanding, we have some bosses in Toronto, Ontario, for the Eastern Canada, who are this blend of an intelligence handler and a very high-level organized crime person. We have similar bosses in Western Canada. And I'm sure because I've read a corruption case involving a senator in San Francisco. We don't need to name the name, but this senator was allegedly involved in offshore arms trading, an FBI sting operation got him. He was involved in talking to the various families in that area. By families, I mean triads. And so, I have to believe in California, we have these very same type of PLA intelligence handlers that are into that fluid mix of gangsters, businesspersons, politicians. that one way or another, they'll get their guanxi from Beijing if they deliver objectives. Right.
00:13:40 JACK GAINES
And then you have the community police there to track people down if they take their wealth and disappear, or if they're not producing, or if they don't feel like they're part of the fold.
00:13:51 SAM COOPER
Yeah. The CCP police station really just made everything we're talking about in this fluid network much easier to understand because they had little bricks and mortar shops. Right. that the FBI and others have discovered have both gangsters and traveling CCP officials involved to look over the community.
00:14:11 JACK GAINES
Right. Because you have to have an enforcer. If you're going to run a