Peter Schweizer’s Blood Money reveals China’s "disintegration warfare"—a shadow campaign flooding the U.S. with fentanyl (via triads like UBG and Mexican cartels) while politicians profit, from Biden’s $5M UBG-linked loan to Kerry’s Hollywood deals. State-backed networks supply pill presses, encrypted tools, and Glock switches via Alibaba, exploiting open borders and TikTok’s propaganda. With lobbyists like ex-senators on payrolls, Schweizer argues U.S. inaction stems from systemic corruption, demanding a "Chinese wall" to sever ties and confront Beijing’s non-kinetic dominance. [Automatically generated summary]
Hey everybody, it's Andrew Clavin with this week's interview with Peter Schweitzer.
You know, recently, Real Clear Politics gave an award, a Samizdot Prize, to people who had fought against censorship to get information out.
They gave it to Miranda Devine of the New York Post and Jay Bhattacharia, the Stanford epidemiologist who helped write the great Barrington Declaration and to Mattaibi, who exposed some of the Twitter files.
And it was kind of, I was really happy RCP did this, but it was also kind of sad to think we're now living in a country where people have to resort to Samizdot.
That was the way that people got information out in the Soviet Union, means self-published, putting it around.
And there is this massive effort to silence people to keep the truth out.
And while I totally am happy that RCP gave the prizes to the people they did, there are a lot of people doing this.
The people who try to silence us are not going to win.
And one of the best of them is Peter Schweitzer.
I mean, he has done incredible investigative reporting.
He's relentlessly fair, but also fearless.
He exposed the flow of dirty money into the Clinton family with the book Clinton Cash to politicians on both sides.
Like I said, he's fair in secret empires.
And Red Handed was the other one that was exposing that.
And now he's brought out a book called Blood Money, unveiling a new cult war with China and the way it is being fought almost silently and destructively.
I told him before we came on that I actually had hair when I started reading the book, but it fell out because the book is so frightening.
Peter, thank you for coming back.
It's great to see you again.
It's great to be with you, Andrew.
Thanks so much for having me.
And you really have done a great job.
I know you work with assistants and all that, but it's just really well put together.
Drug Cartels and Precursors00:13:03
Before we get to the actual subject of the book, do you get heap for this?
I mean, do you come under fire the way some people do, or have you reached the point where they kind of can't touch you?
What they really try to do is just ignore us.
You know, when Clinton Cash came out in 2015, they certainly came at us in all sorts of ways, but we withstood their punches.
And I think what we showed in that book ended up being true.
Remember, when Hillary Clinton lost the presidency, donations from overseas to the Clinton Foundation plunged 80% overnight.
So it kind of proved the case we were making.
But no, we have security issues.
We take security precautions, but we just keep focused on what we're doing, which is revealing the truth.
And fortunately, as you said, there are a lot of people out there doing this.
And I think if we focus on a teen tackle, we have a much better chance of success.
And we're all about that.
Yeah, yeah.
And well, you're definitely leading the way.
So let's start.
I want to make sure I get the name of the book as Blood Money, Why the Powerful Turn a Blind Eye While China Kills Americans.
You start out by saying that China is waging a disintegration war, disintegration warfare.
Can you explain what that means?
Yeah, this is really their concept, not mine.
There was a book written in 2012 by two senior Chinese military officers, which advocated for disintegration warfare.
And on the front cover of the book, they had a quote from the ancient Chinese strategist, always quoted online, Sun Tzu.
And that quote was, the best strategist is the one who defeats his enemy without actually fighting him.
And that's the essence of disintegration warfare.
In other words, they don't want to have a kinetic fighting war with the United States.
Americans will die.
Their people will die.
It will hurt them.
They want to look for ways to subvert and undermine the United States without actually firing a shot.
It doesn't mean that Americans aren't killed.
They are killed in a variety of ways.
So there are casualties, but it gives them the deniability of saying, well, we're not engaged in a war.
We're engaged in peaceful relations with the United States.
What's your problem?
And that is the essence of their strategy.
And it's working quite well.
You see it in the fentanyl.
You see it in the violence on America Street.
You see it in the way that they carried out actions in COVID.
There are a myriad of ways in which they are carrying out this policy right now.
And the problem is, Andrew, that our leaders are either too ignorant or dense to know what's going on, or, and this is a smaller subset, or they have these commercial financial entanglements with China, which make it very hard for them to raise these issues because they risk blowback, they risk embarrassment, they risk scrutiny that they're really not getting right now.
Well, let's start.
You mentioned a couple of things.
Let's start with fentanyl.
You know, we hear about fentanyl being brought in by the cartels out of Mexico.
How is China involved in this?
Yeah, the Mexican drug cartels are really the junior partner in this.
If you look at every link in the chain, this is Chinese run.
So you begin with the precursors.
People know the precursors come from China, right?
That's correct.
Those precursors, 90% of them go into the port of Manzanillo in Mexico, according to the DEA.
That terminal in Manzanillo is run by a Chinese company that is close to the Chinese government.
And that's one of the reasons they have a hard time tracking this stuff once it arrives in port.
Once those precursors are in the port, Andrew, they go to a town in northern Mexico where there are 2,000 Chinese nationals working for the drug cartels who actually take the precursors and turn it into this deadly cocktail that we know of as fentanyl.
Now, once they have the fentanyl, Andrew, they need to have it in a deliverable form because the people taking fentanyl and dying of fentanyl don't know they're taking fentanyl.
They think they're taking an Adderall or a Vicodin.
So the cartels need pill presses and they need pill molds to make these pills actually look like a Vicodin, even though they're not.
Well, those all come from China.
And it's interesting to note, according to the Department of Homeland Security, the Chinese sell that equipment to the drug cartels at cost.
In other words, they're not price gouging them.
So now once they've created these pills, they need to distribute them in the United States.
And if you're a drug cartel and you've got drug mules, you need secure communication.
What do you do?
You again turn to the Chinese.
The drug cartels use Chinese apps.
They use Chinese communication devices that are encrypted in China.
Why?
Because they know that the Chinese will not share those communications with U.S. law enforcement.
And then the final component is any drug operation needs to have money laundering.
You've got miles and miles of cash piled up.
Well, it used to be in the days of heroin and cocaine that the drug cartels used Latin American banks.
They now use Chinese state-owned banks.
And they oftentimes, according to our government, use Chinese students in the United States on education visas to launder the money.
So in every link of the chain, the drug cartels are the junior partners.
The Chinese are the senior partners.
And this is a perfect example of disintegration warfare.
It's part of their concept, Andrew, that they call murder with a borrowed knife.
In other words, if you're going to kill somebody, use somebody else's knife to do it so they get the blame and you are absolved of responsibility.
The drug cartels are the borrowed knife.
It's China that is actually plunging this into the ribs of America.
And of course, fentanyl is now the leading cause of death for people under the age of 45 in the United States.
When you say China here, I know you're not referring to the Chinese people and you're very specific in your book that As oppressed, they're as much a victim as we are.
Are you referring in this case when you're talking about selling material to the cartels?
Are you talking about the government or are you talking about the mob?
Yeah, you're talking about the government.
And here's the thing.
They struck a piece back in the 1980s under Deng Xiaoping, who said, if these triads organize crime, if they are patriotic, meaning they love the CCP, and as long as they don't sell their drugs within China, China will support them and back them and they work together.
And all you need to do is look at some of these consultative bodies that the CCP has set up for Chinese individuals who are not party members, but with whom they share common purpose.
They are populated with individuals that we know are dragonheads or leaders in Chinese organized crime.
So when you're talking about Chinese organized crime networks, you're talking about networks that work very closely with the CCP and that in many cases are advising the Chinese Communist Party.
And they are a tool or a mechanism for the Chinese state to carry out these activities overseas.
That's amazing.
That's amazing.
There's a quote that I underlined.
Our investigation shows that some U.S. political and business leaders are working or investing with known members of the drug networks, poisoning Americans.
Now, sometimes when people say that, they mean that, you know, everybody's portfolio has something connected to China.
We live in this global economy.
What do you mean exactly?
Well, if you look at a guy like Li Kaxing, a Hong Kong-based billionaire close to the CCP, has been widely reported to be linked to Chinese organized crime.
And of course, it is his company, by the way, that controls that port in Manzanillo, where the precursors are coming through.
Well, look at his investment banking business.
It's done by Morgan Stanley and Goldman Sachs.
And they're estimated to generate $400 million a year in fees just for managing his businesses.
You don't have to spend very long looking through authoritative sources, government documents, intelligence reports, for example.
There was a report in Canada called Sidewinder in the late 1990s that said that Li Kaxing was directly involved with Chinese organized crime to know what he's doing.
And yet these investment banks continue to work with him.
Why?
Because it's profitable.
Wow.
You know, I don't want to push you in any way.
I want to be clear with us.
I don't want to push you in any way towards conspiratorial thinking.
But because I have you here and you have so much information, I want to ask for my own curiosity.
I'm listening to the testimony in Congress about the Biden family's dealings with Chinese energy companies who are pumping money into their influence peddling business.
And then I see that I read in your book and other places as well that the cartels are bringing in these drugs and, as you say, laundering money with the triads who are also taking over our marijuana businesses as well.
Does that make you sit and think that the open borders are connected to this in some way, or is that just being paranoid?
No, I think it's absolutely a question worth asking.
It's always difficult to know the motivation, right?
But behind why is Joe Biden carrying out these policies?
But what you can do is look at the entanglements and who benefits from these actions.
And here's the thing about Joe Biden and his family receiving this money from China.
There is a clear reason why Joe Biden does not want to deal with China's involvement in the fentanyl crisis.
And I think there's also a clear reason he wants to steer clear of a conversation about fentanyl poisoning Americans.
And that is because there is quite literally one degree of separation between the Biden family and the fentanyl networks in Mexico.
Now, I'm not suggesting, Andrew, that they're involved in the trade, but let's be clear.
In 2017, the Bidens received a $5 million interest-free forgivable loan from a Chinese businessman.
Everybody acknowledges this.
The bank records confirm this.
They never repay the loan.
So $5 million gift from a Chinese businessman.
Who is that Chinese businessman?
He was business partners with a Chinese gangster named White Wolf, who's the head of a criminal gang called UBG.
And UBG is literally the Chinese organized crime network that set up the Sinaloa cartel in the fentanyl trade and made them the kings of fentanyl.
So the question is, does Joe Biden really want to have a conversation about this subject?
I don't think he does.
And all you have to do is look at his policy over the last three years.
He has said, I have talked to the Chinese about this.
I've talked to Xi about it, but there will be no finger pointing.
And his Secretary of State even suggested that these precursors may be arriving from China by accident.
I mean, this is absurdity.
So, you know, to me, there clearly is a reason that Joe Biden has assumed this posture despite 100,000 Americans dying every year.
And I think it is related to these financial entanglements.
And I think you have to ask these broader questions on his policies, why he won't confront certain issues.
And I think it is because he has exposure there.
And it's not.
So in other words, it's not like, oh, we're planning to do this, Joe.
Here's some money, go away.
It's just that they entangle him and then he doesn't want to bring up the subject because it's going to lead back to him in some way.
Yeah, exactly.
And another person that I would relate that to would be Gavin Newsom, the governor of California, who has adopted the same posture with regards to fentanyl.
Even though California leads the nation in fentanyl deaths, their deaths have gone up since 2016 1,400%.
And yet, what does Gavin Newsom say?
No finger pointing.
We're not going to point fingers at the Chinese.
Well, then you look back at Gavin Newsom's political rise, beginning when he was mayor of San Francisco, and you find that he has a series of just bizarre relationships, professional relationships, with figures that are high-ranking officials in Chinese organized crime.
He had one guy that was on his transition team that was later found out to be involved in these networks and charged with drug running and a murder for hire plot.
The man that he appointed in San Francisco as head of redevelopment for a Chinatown ended up being the head of a Chinese organized crime syndicate.
He became friends with a guy.
I don't know why you get friends with a guy named Shrimp Boy, but this is a guy who is a dragonhead who Gavin Newsom even steered nonprofit dollars from taxpayers in San Francisco to this guy's nonprofit until people in Chinatown said, what are you doing?
And of course, that guy was later charged in a murder plot.
And then you look at this program he set up called China SF, which was designed to bring Chinese investment dollars into the Bay Area.
Beam Dream Sleep Aid00:02:10
Gavin Newsom launched this in 2008.
Of all the businessmen, Andrew, that he could have picked in China to partner with, he picks Vincent Lowe, who you can go and look at the press accounts.
This guy was already known to be linked to Chinese organized crime.
So again, I would ask Gavin Newsom, does he really want to stir this pot?
I think that's one of the reasons.
It's not just naivete.
It's not that he's a CCP sympathizer.
It's deeply embarrassing and he does not want to have the political blowback that comes from having this very hard and important conversation.
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Mitch McConnell's Chinese Connection00:06:17
We're talking to top-notch investigative reporter Peter Schweitzer.
Really, I don't even know what to call it, appalling new book, an excellent new book, but appalling Blood Money, Why the Powerful Turn a Blind Eye While China Kills Americans.
And that turns out to be the literal description of what's in the book.
What about Mitch McConnell?
Now, he's obviously married into big Chinese money recently.
I mean, just before he announced his retirement, his sister-in-law backed her Tesla into a lake on her property.
The police say it was a matter of her being drunk after a party.
You know, again, and again, I seriously don't want to push you into any kind of conspiracy theorizing, but how much is he involved in this?
Well, in Mitch McConnell's case, there's also an entanglement.
I think it also leads him to pull punches when it comes to China.
What I would say slightly in his defense is that unlike the Bidens, the McConnell-Chow family actually does have a bona fide business.
I mean, they have a shipping business that's been there since the 1980s, unlike Hunter Biden's quote-unquote financial advisory firm, whatever that is.
But here's the problem.
Back in 1993, Mitch McConnell, his wife Elaine Chow, and his father-in-law, James Chow, paid a visit to China.
They were there as guests of the Chinese State Shipbuilding Corporation, which is the largest military contractor in China.
And of course, as the name implies, they build ships.
And China was isolated.
It was four years after Tiananmen Square.
And basically, the Chinese struck a bargain with the McConnell-Chow family and said, look, we will build these large ships for you so you can ship goods across the Pacific.
We will finance, we'll get our state banks to finance those construction projects for you.
We'll provide crews to man those ships when you're shipping goods across the Pacific.
And we'll get a lot of Chinese state-owned companies to hire you to ship their products to the United States and Latin America.
And the McConnell-Chow family took that deal.
And the family business has done very, very well.
Here's the problem, Andrew.
If Mitch McConnell were to do or say something as a United States senator that really angered Beijing, they could literally destroy the McConnell-Chow family business overnight.
That's the kind of leverage the Chinese call it elite capture.
They want this sort of like, you know, panda bear hug that they can hug you and make you rich, but they can also squeeze you and kill you.
And that's essentially the situation that Mitch McConnell is in.
So, you know, he pays lip service to certain issues, but he does not support aggressive policy actions that are going to anger Beijing because it will cost his family dearly if he does.
One more person I want to talk about because you mentioned John Kerry in the book.
And how he once wrote a book about Chinese government ties to organized crime, describing some of the stuff that you're describing now.
And then, and remember, John Kerry was Secretary of State.
I mean, now he's doing environmental crazy stuff, but he was once a very important character.
He went silent after this.
He writes this book and he goes silent.
What happened to him?
Yeah, I think what happened to him is, you know, he was a senator when he wrote that book.
And after he wrote that book, he took several delegations of New England-based businessmen, who, of course, many were his donors and would donate to his presidential campaign in 2004.
He took them on trips to China because they were all seeking business deals in China.
The book is actually quite good.
And what he talks about is how the Chinese state was fused with Chinese organized crime.
And in the 1990s, how heroin was a massive income stream for China because of this alliance.
Another guy, by the way, in the 1990s who once talked about China's involvement in the drug trade and heroin was Senator Joe Biden.
But they've both gone silent.
And in the case of the senator from New York, the former Secretary of State John Kerry, I think it's a combination of those donors.
It's also a combination of his own personal investment portfolio, which includes some very interesting investment stakes in highly sought after, at least in the past, investment opportunities in China that were only open to certain people.
And John Kerry and his wife happened to get some of those deals.
And those investments have done very well.
So his sole act as Secretary of State when the fentanyl crisis, by 2016, the Obama administration had already declared it a national emergency.
His sole act in responding to fentanyl was to write a letter to the United Nations encouraging that the UN look into the problem.
That was it.
Stern stuff.
When you started, you talked about violence on our streets, on American streets.
How has that involved the Chinese?
Well, we've had this amazing thing happen in the last five, six years in the United States, and that is the return of machine gun fire to America's streets.
We remember it from the old gangster movies with Al Capone.
Well, it's returned, and China is a major reason for it.
The machine gun fire comes in the form of a small device, metal device about this size called a Glock switch or an auto-sear switch.
Highly illegal in the United States, highly illegal in China for that matter.
But this switch, if you drop it into a Glock handgun, it turns a Glock handgun into a fully automatic machine gun.
And you can put a 50-round drum on there and you can do a lot of damage.
Beginning in 2018, China started to smuggle these into the United States.
Department of Homeland Security reported on it, and they specifically noted, Andrew, that the Chinese were selling these to organized crime and criminal elements in the United States, street gangs, drug dealers, et cetera.
They were selling them openly in English on Alibaba.
They had other websites that they set up and that ATF and other government agencies tried to get China to shut these manufacturers down and they got no cooperation whatsoever.
TikTok Bill and Chinese Influence00:08:53
So this has been a major problem.
We've seen an increase of 5,000% in the rate of machine gun fire in America's streets.
China actually runs newspaper articles in state media about, look how crazy the Americans are.
They've got, you know, their cities are out of control.
What they fail to mention is they were the ones that provided these switches that these criminal gangs are now using.
And our cops are hopelessly outgunned because of it.
Yeah.
Once again, we're talking to Peter Schweitzer's new book, is Blood Money is Already a Bestseller, Why the Powerful Turn a Blind Eye While China Kills Americans.
Let's talk a little bit while we have a few more minutes, talk a little bit about the cultural attack.
Recently, of course, that bill to make TikTok, to force TikTok to abandon its parent company based in China, has kind of gotten mired, I think, in the Senate.
It made it out of the House, but it's not going anywhere in the Senate.
How important is that and how dangerous is TikTok or other Chinese attacks on the culture?
Great question, Andrew.
No, I think that that bill is good and important.
Doesn't mean that that's the only problem.
I think there are things with American big tech firms, obviously, that we need to be concerned about and deal with.
But TikTok is unique.
And it's unique not just because it's a Chinese company that is beholden to the CCP.
It's unique because it is specifically joined at the hip with a Chinese state.
So what do I mean?
Well, that all-important algorithm, you know, the thing that makes this thing go and fuels its sort of addictive nature and makes it so intuitive.
It's a company secret.
The Chinese government in 2019 also declared it a state secret.
So it is not just a corporate issue.
It is a government issue.
ByteDance, the parent company to TikTok, as I point out in the book, also does extensive joint research with the Chinese Ministry of State Security and the Chinese Ministry of Propaganda.
They are doing joint research on artificial intelligence.
They have also done research on manipulating people through social media.
So this is the company that people are saying should have unfettered access to young people in America.
And let's remember the Chinese company, ByteDance, specifically markets TikTok as a parent-free zone for young people.
You know, like Facebook, for example, you can become friends with your child.
You can see what your child is posting.
You can, you know, follow people on TikTok.
I'm sorry, on Twitter or X. You can't do that on TikTok.
It is a parent-free zone.
And I quote extensively in the book, Andrew, people from the Ministry of Propaganda, people from the Chinese military talking about how they already are using this to manipulate people in the West emotionally.
And how when you manipulate people emotionally, they mistake this sort of internal righteous indignation for their own feeling that they developed organically, failing to recognize that it came from this external source.
And the propagandists say once we have them there, we have them and we can shape their view of what they see and what they do.
So it is a massive problem.
I think this bill is very, very important.
We have additional problems with video games and other areas where China has bought up companies and is inculcating their themes and their values and ideas there that we also need to be taking a look at.
Now, you know, the other day I was watching, I have a guilty pleasure of action movies.
I love action movies.
And I really like this British actor, Jason Statham.
And he's in a sequel to some shark film, Silly Shark film, called Meg.
And I'm watching this and about 30 minutes into it, I start to realize I'm watching Chinese propaganda, basically.
I'm watching something that's very, very cleverly, carefully, quietly directed toward making you feel that the Chinese are our allies.
I had to turn it off.
I mean, I felt like I was watching something toxic.
How deeply have they infiltrated Hollywood?
A lot.
And they've done it through money, these co-finance deals.
You know, Spielberg and Katzenberg have done a series of films, including children's films.
If you look at the Kung Fu Panda series, by the way, the first two movies were totally done in the United States, financed by Americans.
The themes are wonderful.
It talks about overcoming your fears.
It talks about self-improvement.
It talks about helping others.
Kung Fu Panda 3 was financed with Chinese money, which meant they got to control the script.
Kung Fu Panda 3 is basically a people's revolt.
It's about the collective.
It's not about the individual.
And that is by design.
You mentioned The Meg.
Look at some of the other films that have been co-financed.
The Martian, the Matt Damon film where he's trapped on Mars.
Remember how he gets rescued?
NASA rescues him because they are given technology by the Chinese.
It's the Chinese that rescue poor Matt Damon.
It's not the U.S. government.
That's in the script because it was financed by China and China wanted that incorporated into the final product.
So it's a big problem.
I think the best news in a while is the fact that China has been pulling back from these co-finance deals, that they're giving less access to Hollywood films to the Chinese market.
So perhaps we're going to see less of this.
But it's a huge problem.
And the willingness of creative types in the United States to take money from China with strings attached and then sort of condemn corporate America to me is truly astonishing.
You know, this problem when you read this book, blood money, the problem seems so vast.
And they seem to have infiltrated us so cleverly.
And they seem so much smarter than we are on top of everything else.
Is there a path that you want to see the government take?
And is there anyone you think would take that path?
Yeah, great question.
I think you have to begin by tackling this problem in a way that allows you to tackle the problem.
And so what do I mean by that?
This all begins with Washington, D.C., and the fact that there is Chinese money awash in the nation's capital.
Just look at the TikTok bill that we talked about.
TikTok has 20 lobbyists working for them on this bill, including six, half a dozen former U.S. senators are being paid to lobby on behalf of this entity.
My view is that, yes, we do have a constitutional right as citizens to petition our government, which means we can lobby them.
I don't believe that that should extend to Chinese companies or to foreign governments.
The Chinese government, by the way, has lobbyists that they pay in the United States as well.
So we have to begin with certain reforms.
One of those reforms is we need to ban the lobbying by Chinese owned companies and by the Chinese government.
I think the second thing we need to do is create a, I dare say, a Chinese wall restricting the ability of our political class from having these financial entanglements with China.
And that would allow us to create the environment in Washington where we could actually start passing policies that would allow us to address this.
My view is we've got to be realists about this.
I had a conversation years ago with Admiral Jim Stocktale, who had been in the Hanoi Hilton for seven years.
And I said to Admiral, how did you survive?
Who survived?
And he said, well, the optimists were the first ones to die because they died of a broken heart.
They kept thinking they were going to get out and they just died of a broken heart.
I said, who died next?
And he said, the pessimists, because the pessimists thought they were never going to get out, but they just hung on a little bit longer.
I said, well, how did you survive?
He said, I was a realist.
Every day I got up and said, I might get out, I might not get out, but my job is today to survive and live today.
So the possibility of me getting out tomorrow exists.
That's how we have to approach, I think, the China threat.
You can't say it's going to go away.
You can't say it's overwhelming.
We can't do anything.
You've got to be a realist about it and take action every single day that moves us to the point where we can win because we absolutely can win.
Excellent talking to you, Peter.
Peter Schweitzer, Blood Money, Why the Powerful Turn a Blind Eye While China Kills Americans.
An enlightening book.
Not always pleasant, but very powerful, really stunning, great investigative stuff.
Thank you, Peter.
It's really good to see you.
I hope you'll come back next time.
Great to see you as always, Andrew.
Thank you.
Yeah, you definitely want to take a look at this book, Peter Schweitzer's book, Blood Money.
It is really well researched.
He's got a lot of documents that were kind of leaked that he didn't leak, but he got hold of them.
Just really informed and something you should know about.
And it helps you to see politics from a much more realistic light.
We do that too on Friday at the Andrew Clavin Show.