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Explosive new allegations of Chinese interference in Prince Edward Island show Canada’s institutions may already be compromised and Ottawa has been slow to respond.

The revelations came out in August in a book entitled “Canada Under Siege: How PEI Became a Forward Operating Base for the Chinese Communist Party.” It was co-authored by former national director of the RCMP’s proceeds of crime program Garry Clement, who conducted an investigation with CSIS intelligence officer Michel Juneau-Katsuya.

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P.E.I.’s Provincial Nominee Program allows provinces to recommend immigrants for permanent residence based on local economic needs. It seems the program was exploited by wealthy applicants linked to Beijing to gain permanent residence in exchange for investments that often never materialized. It was all part of “money laundering, corruption, and elite capture at the highest levels.”

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Hundreds of thousands of dollars came in crisp hundred-dollar bills on given weekends, amounting to millions over time. A monastery called Blessed Wisdom had set up a network of “corporations, land transfers, land flips, and citizens being paid under the table, cash for residences and property,” as was often done by organized crime.

Clement even called the Chinese government “the largest transnational organized crime group in the history of the world.” If true, the allegation raises an obvious question: how much of this activity has gone unnoticed or unchallenged by Canadian authorities, and why?

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Dean Baxendale, CEO of the China Democracy Fund and Optimum Publishing International, published the book after five years of investigations.

“We followed the money, we followed the networks, and we followed the silence,” Baxendale said. “What we found were clear signs of elite capture, failed oversight and infiltration of Canadian institutions and political parties at the municipal, provincial and federal levels by actors aligned with the Chinese Communist Party’s United Front Work Department, the Ministry of State Security. In some cases, political donations have come from members of organized crime groups in our country and have certainly influenced political decision making over the years.”

For readers unfamiliar with them, the United Front Work Department is a Chinese Communist Party organization responsible for influence operations abroad, while the Ministry of State Security is China’s main civilian intelligence agency. Their involvement underscores the gravity of the allegations.

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One example Baxendale highlighted involved a PEI hotel. “We explore how a PEI hotel housed over 500 Chinese nationals, all allegedly trying to reclaim their $25,000 residency deposits, but who used a single hotel as their home address. The owner was charged by the CBSA, only to have the trial shut down by the federal government itself,” he said. The case became a key test of whether Canadian authorities were willing to pursue foreign interference through the courts.

The press conference came 476 days after Bill C-70 was passed to address foreign interference. The bill included the creation of Canada’s first foreign agent registry. Former MP Kevin Vuong rightly asked why the registry had not been authorized by cabinet. The delay raises doubts about Ottawa’s willingness to confront the problem directly.

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