China ‘tax breaks’ for chemical firms fuelling US fentanyl crisis

CHINA has been accused of contributing to America’s fentanyl crisis by providing tax breaks and subsidies to companies that produce chemicals used to make the deadly synthetic opioid.

An investigation by the US House of Representatives select committee on China said a review of the country’s taxation policies revealed the Chinese Communist Party (CCP) was granting tax rebates to anyone producing fentanyl precursors so long as they are sold abroad.

The report concluded that “through subsidies, grants, and other incentives, the People’s Republic of China (PRC) harms Americans while enriching PRC companies”.

Fentanyl, a powerful synthetic drug which is up to 50 times more potent than heroin, is now the leading cause of death among American citizens aged 18 to 45. It has been linked to the deaths of 112,000 Americans annually.

China reportedly makes 97 per cent of the global supply of precursor chemicals, which are turned into fentanyl by drug cartels in Mexico.

Committee investigators obtained their information by accessing China’s state taxation administration website, which revealed rebates of up to 13 per cent for companies producing specific chemicals, so long as they sell them outside of China.

The report said subsidies were additionally offered for the NPP and ANPP precursors used by drug cartels.

Republican Mike Gallagher, who leads the select committee, said it proved the CCP “wants the chaos and devastation that has resulted from the epidemic”.

Liu Pengyu, a Chinese embassy spokesman, said: “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.

“Blindly blaming China cannot solve the US’S problem,” he said.