US Implements Sanctions on China-based Network in Effort to Combat Fentanyl

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The US Treasury has imposed sanctions on 25 Chinese individuals and entities allegedly involved in drug manufacturing and smuggling, as part of its efforts to crack down on the proliferation of fentanyl in the United States.

The Treasury is targeting a China-based network responsible for producing and distributing fentanyl, methamphetamine, and ecstasy ingredients, as well as one person and two groups in Canada that are accused of importing drugmaking chemicals from China.

In addition, the Department of Justice has unsealed indictments against Chinese groups and executives for their roles in the production and supply of methamphetamine, fentanyl, and other synthetic opioids.

US attorney-general Merrick Garland stated, “The global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China. The US government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”

Garland emphasized the need for the Chinese government to stop the flow of precursor chemicals coming from China.

Deputy Treasury Secretary Wally Adeyemo stated that the Joe Biden administration will swiftly use all available tools to counter the global threat of the illicit drug trade.

At a news conference with Garland, Adeyemo, and other officials, US Drug Enforcement Administration head Anne Milgram described fentanyl as the greatest threat to Americans and the leading cause of death for people aged 18 to 45. She added that nearly all raw ingredients for fentanyl originate from China.

These actions take place in the context of strained US-China relations. Negotiations to reduce the flow of fentanyl precursors from China to the US have not resulted in an agreement.

The Chinese embassy in the US criticized the sanctions, stating that they would hinder US-China cooperation on counter-narcotics. The embassy called on the US to lift sanctions on Chinese counter-narcotics law enforcement institutions, which it sees as an obstacle to reaching an agreement on tackling the flow of fentanyl ingredients.

The Treasury revealed that the sanctioned individuals and entities are also involved in the global trafficking of highly potent chemicals mixed with illicit fentanyl. These chemicals include xylazine and nitazenes, which have been linked to tens of thousands of American deaths and are 50 times more potent than heroin.

One of the targets of the sanctions, Du Changgen, is a Chinese national who allegedly has significant influence over an illicit drug syndicate in China. The syndicate has the capacity to produce large quantities of drugs and has been responsible for shipping 900kg of precursor drugs to the US and Mexico. Du and his team have supplied chemicals to groups such as the Sinaloa cartel in Mexico.

Four months ago, US federal prosecutors indicted Chinese nationals and groups for manufacturing and supplying precursor drugs used in fentanyl production.

Although Beijing has cracked down on Chinese groups supplying fentanyl, these groups have shifted to supplying precursor drugs to Mexican cartels, who then manufacture fentanyl and other illicit drugs.

Meanwhile, pressure is mounting on Mexico to take action against drug cartels, with an increasing number of Republicans calling for US military intervention.

Mexico recently extradited Ovidio Guzmán, the son of drug kingpin Joaquin “El Chapo” Guzmán, to the US. He is accused of operating a vertically integrated fentanyl trafficking business.

Garland and other top officials, including Secretary of State Antony Blinken and Homeland Security Secretary Alejandro Mayorkas, will travel to Mexico City this week for discussions focused on combating the fentanyl issue.

Additional reporting by Christine Murray