China is fueling the U.S. fentanyl crisis by directly subsidizing the manufacturing of materials used by traffickers to make the drug outside the country, according to a report released Tuesday by a House Select Committee tasked with combating it. against the Chinese government.
Committee investigators said they accessed a government website revealing tax cuts for the production of specific fentanyl precursors as well as other synthetic drugs, provided those companies sold them outside China.
“Through its actions, as our report revealed, the Chinese Communist Party is telling us that it wants more fentanyl to enter our country,” said Rep. Mike Gallagher, Republican chairman of the House select committee. “He wants chaos and devastation resulting from the outbreak.”
In November, President Joe Biden and Chinese President Xi Jinping announced the resumption of bilateral cooperation in the fight against narcotics, with a focus on reducing the flow of chemical precursors and the trafficking of synthetic drugs. But the congressional report raises the question of whether China follows through on the decision.
The report’s findings were released Tuesday as part of a hearing examining China’s role in the U.S. fentanyl epidemic. Most overdose deaths in the United States continue to be linked to fentanyl and other synthetic opioids. Cheap fentanyl is increasingly being used in other drugs, often without buyers’ knowledge.
U.S. Attorney General Merrick Garland announced indictments against eight Chinese nationals and four Chinese companies for trafficking precursor chemicals into the United States for the purpose of manufacturing fentanyl.
The Chinese government not only subsidizes the manufacturing of precursor chemicals, but the report says it has also thwarted investigations into illicit manufacturers by warning targets of investigation when U.S. law enforcement sent a formal request for ‘assistance. Investigators said several current and former federal agents described reporting targets, leading those targets to reorganize their operations and making it more difficult to detect their activities.
Former U.S. Attorney General William Barr told lawmakers at Tuesday’s hearing that it’s hard to believe a country with the world’s most widespread surveillance system isn’t fully aware of the massive drug trafficking that takes place there. He said the committee’s report “uncovered compelling evidence” that the Chinese government is not just a spectator, but is “on its knees” in sponsoring and facilitating the export of precursors of fentanyl.
Barr recommended that the United States use its trade and economic power to gain greater enforcement from Chinese authorities. He also said victims should file civil lawsuits against companies and individuals involved in the distribution of precursors and synthetic drugs.
“I don’t think we can rely on their good will, as we have in the past,” Barr said.
In a statement, a Chinese official did not directly address allegations that China subsidizes the production of fentanyl precursors, but he listed several steps the country has taken to reduce fentanyl production.
Following the Biden-Xi meeting in November, China issued a notice reminding relevant companies and individuals to exercise caution in the sale of substances used for the production of narcotics. And on Jan. 30, a Sino-U.S. counternarcotics task force was officially launched, said Liu Pengyu, a spokesperson for the Chinese Embassy in Washington.
China has also launched a campaign to “severely crack down on illegal activities involving the smuggling, manufacturing, trafficking and abuse of fentanyl substances and their precursor chemicals,” Pengyu said. And drug control authorities in both countries are in regular communication. with the Chinese briefing U.S. officials on progress related to enforcement actions and responding to requests for verification.
“All this clearly shows that China’s drug control authorities have taken active measures to implement the consensus reached by the two presidents, fully demonstrating China’s sincerity,” Pengyu said in a written statement. “It is very clear that there is no fentanyl problem in China, and the fentanyl crisis in the United States is not caused by the Chinese side, and blindly blaming China cannot solve the problem. problem of the United States.”
Rep. Raja Krishnamoorthi, the committee’s top Democrat, said Chinese companies are also currently selling synthetic opioids on their websites, and pointed to a screenshot of such a solicitation that committee staff found Monday evening before the hearing. He said these positions should be eliminated immediately.
“There are hundreds of posts like this on websites, hundreds,” Krishnamoorthi said. “This is completely unacceptable.”
Chemical companies that supply fentanyl precursors often have legitimate business with customers around the world. The report says precursors to fentanyl and other synthetic narcotics constitute a “sideline business” designed to maximize profits.
Companies that sell fentanyl precursors and narcotics in parallel are particularly vulnerable to US sanctions. The same goes for companies such as banks, online platforms and shipping companies that enable the illicit trade of fentanyl.
The report calls on Congress to clarify the president’s authority to sanction those involved in drug trafficking, for the United States to impose financial sanctions on violators, and to regularly report to Congress on the frequency of sanctions.
It also calls for the formation of a task force that would bring together intelligence, economic and law enforcement resources under one roof. The group’s leader would report directly to the U.S. attorney general and serve as special assistant to the president on the National Security Council, with authority over the opioid portfolio.
NBC Chicago
