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The John Batchelor Show

13: The Financial Flow: China's Role in Fentanyl Money Laundering Josh Birenbaum, Foundation for Defense of Democracies, with John Batchelor Birenbaum discusses China's deep involvement in the fentanyl crisis, supplying precursor chemicals and dominating mone

The John Batchelor Show

John Batchelor

Society & Culture, Arts, News, Books

4.52.8K Ratings

🗓️ 22 October 2025

⏱️ 9 minutes

🧾️ Download transcript

Summary

The Financial Flow: China's Role in Fentanyl Money Laundering Josh Birenbaum, Foundation for Defense of Democracies, with John Batchelor Birenbaum discusses China's deep involvement in the fentanyl crisis, supplying precursor chemicals and dominating money laundering for Mexican cartels. Chinese money laundering gangs convert cartel dollars into RMB via a triangle system, catering to Chinese nationals who need US dollars outside of China's capital controls. Birenbaum suggests tracking dollars moving within the US and requiring proof of source of wealth for large purchases to disrupt this finance loop.



Transcript

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0:00.0

This is CBSI on the world. I'm John Batchel. Fentanyl. Poison. I welcome Josh Beerenbaum as a foundation for the defensive democracies to guide us through where we are in stopping the flow of poison into American people, killing people, wrecking families, damaging major states.

0:25.9

Josh, a very good evening to you. Your piece at FD is revelatory to me. I want to begin to the fundamentals.

0:31.9

The fentanyl flowing in from Mexico across the border, the critical elements come from China. We've done that a long

0:40.7

time. But there's been talk for years that the U.S. has put pressure on China's leadership to stop it.

0:50.3

Cut it out. We know what you're doing.'re poisoning our people via mexico and you're playing

0:56.1

with the cartels and the chinese leadership has said okay we stop and the handoff is who are the

1:04.4

cartel gangs that operate fentanyl coming in from china where are they good evening to evening to you, Josh. It's a pleasure to be here.

1:13.0

Thanks for having me. There are a number of gangs trafficking fentanyl and other dangerous synthetic

1:19.4

opioids throughout Mexico. The Holisco cartel is deeply involved, as is the Sinaloa cartel.

1:26.1

And what we see is that their role is largely taking

1:29.9

these chemical precursors that come from China and turning them into fentanyl and other dangerous

1:36.2

drugs and shipping them across the border. But the Chinese role here is really multifaceted,

1:43.4

because they're certainly giving a lot of

1:45.9

of the precursor chemicals and the required pill presses and the other tools to make the fentanyl,

1:53.0

but they're also helping on the money side after the drugs are sold.

1:56.5

And so China really bears a lot of responsibility on the front and back end of this crisis, helping the drug cartels that are using that money to buy, we learned last month they're using them to buy anti-aircraft guns and rocket launchers.

2:12.6

So this is a really dangerous situation, dangerous for American citizens, dangerous for Mexican citizens as well.

2:19.2

All right, we have two parts here. We have the precursors. That's cash and carry business.

2:24.9

But, and that comes into Mexico and labs can be crude and simple and mobile. I understand all

2:29.9

that. But the cash that comes from it is a problem. How do they deal with that cash? How do they get it

2:36.2

out of the hands of the drug lords? Well, China has come into this and without firing a shot,

2:42.3

largely taken over the money laundering operations of the Mexican drug cartels in a really

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