House lawmakers claim China is facilitating fentanyl crisis
Select committee report outlines tax rebates and other ways it says officials enable trafficking.
WASHINGTON — China is fueling the fentanyl crisis in the U.S. by directly subsidizing the manufacturing of materials that are used by traffickers to make the drug, according to a report released Tuesday by a special House committee focused on countering the Chinese government.
Committee investigators said they had accessed a Chinese government website that revealed tax rebates for companies that produce specific fentanyl precursor chemicals and synthetic drugs as long as they are sold outside China.
“Through its actions, as our report has revealed, the Chinese Communist Party is telling us that it wants more fentanyl entering our country,” said Wisconsin’s Rep. Mike Gallagher, the Republican chair of the special committee. “It wants the chaos and devastation that has resulted from the epidemic.”
In November, President Biden and Chinese President Xi Jinping announced the resumption of bilateral counternarcotics cooperation with a focus on reducing the flow of precursor chemicals and synthetic drug trafficking. But the congressional report raises questions about whether China is following through.
The findings were released Tuesday in a hearing on China’s role in the U.S. fentanyl epidemic. Most overdose deaths in the U.S. are now linked to fentanyl and other synthetic opioids. Inexpensive fentanyl is increasingly cut into other drugs, often without the customer’s knowledge.
China’s government not only subsidizes manufacturing of precursor chemicals, the report says, but it has also thwarted investigations into illicit manufacturers by warning the targets of investigations when U.S. law enforcement officials have sent formal requests for China’s assistance.
Investigators said multiple current and former federal agents have described targets revamping operations and making it harder to detect their activities, apparently after they received warnings.
Former Atty. Gen. William Barr said in Tuesday’s hearing that it’s hard to believe a country with the most pervasive surveillance system in the world is not fully aware that massive drug trafficking is taking place. He said the committee’s report “uncovered persuasive evidence” that China’s government is not just a bystander, but is “kneedeep” in sponsoring and facilitating the export of fentanyl precursors.
Barr recommended the U.S. use its trade and economic power to seek greater enforcement from Chinese authorities. He also said victims should bring civil actions against companies and individuals involved in distributing the fentanyl precursors and synthetic drugs.
“I don’t think we can count on their goodwill, as we have in the past,” he said.
The Chinese Embassy in Washington did not respond immediately to a request for comment.
Illinois’ Rep. Raja Krishnamoorthi, the top Democrat on the committee, said Chinese companies also sell synthetic opioids on their websites, and pointed to a screenshot of one such solicitation that committee staff found on the night before the hearing. He said such posts have to be taken down immediately.
“There are hundreds of these website posts — hundreds,” Krishnamoorthi said. “This is completely unacceptable.”
The chemical companies providing fentanyl precursors often have legitimate businesses with customers around the world. The report said fentanyl precursor chemicals and other synthetic narcotics are a “side hustle” designed to maximize profits.
Businesses that deal in fentanyl precursors and narcotics on the side are particularly vulnerable to U.S. sanctions. The same goes for companies such as banks, online platforms and shipping companies that enable the illicit trade.
The report calls on Congress to clarify the power of the president to sanction those involved in drug trafficking, for the U.S. to impose financial sanctions on violators, and for regular reports to Congress on how often sanctions have been undertaken.
It also calls for forming a task force to place intelligence, economic and enforcement resources under one roof. The head of the group would report directly to the attorney general and serve as a special assistant to the president on the National Security Council with authority over the opioids portfolio.