Washington — The Justice Department announced on Friday that four China-based companies and eight Chinese nationals have been charged by federal prosecutors for allegedly supplying precursor chemicals for fentanyl, a deadly drug distributed in the United States. The Drug Enforcement Administration (DEA) seized over 200 kilograms of these chemicals, which is enough to cause the death of 25 million Americans, according to investigators. These indictments mark the first time federal prosecutors have taken action against Chinese companies involved in the creation and distribution of fentanyl ingredients.
“We are targeting every step of the movement, manufacturing, and sale of fentanyl from start to finish,” stated Attorney General Merrick Garland while announcing the indictments. The DEA conducted an undercover operation against Amarvel Biotech, a chemical manufacturing company based in Wuhan, China. The company executives were found advertising their products to fentanyl manufacturers in Mexico, guaranteeing “100% stealth” international shipments. DEA sources communicated with the company and requested direct shipment to the United States.
The charging documents allege that the defendants knowingly shipped these precursor chemicals to the United States with the intention of producing fentanyl, despite being aware of the deaths caused by their chemicals. Over an eight-month period, Amarvel employees shipped 200 kilograms of fentanyl precursors to the U.S. Two employees, Qingzhou Wang, 35, and Yiyi Chen, 31, were arrested and charged, while another defendant remains at large.
This development comes after the recent charges against four Chinese nationals and one Guatemalan national for supplying fentanyl ingredients to the Sinaloa cartel in Mexico. The Justice Department revealed that between August 2021 and August 2022, 107,735 people died of drug overdoses in the United States, with fentanyl being responsible for two-thirds of these deaths. The production of fentanyl begins mainly in China, where the ingredients are manufactured and then shipped to Mexico and sometimes the U.S. for distribution.
“PRC companies are selling vast quantities of precursor chemicals to the drug cartels,” stated Deputy Attorney General Lisa Monaco. The Justice Department is actively working with social media companies to combat the illegal marketing of fentanyl on their platforms. The charging documents against Amarvel Biotech executives and employees reveal their knowledge of the illegality of their products and their deceptive shipping practices. In one exchange, the defendant was made aware that the drug was “not safe,” to which they responded acknowledging the risk but promising cost savings for buyers compared to other raw materials.
The shipment of fentanyl-related chemicals was ultimately seized by DEA agents in Los Angeles. DEA Administrator Anne Milgram explained that certain Chinese companies provide instructions and suggestions for fentanyl manufacturers worldwide, making them complicit in the global fentanyl crisis. Other indicted companies, such as Anhui Rencheng Technology Co. and Hefei GSK Trade Co. Ltd, are accused of disguising the fentanyl ingredients by applying “masking molecules” during shipment to avoid detection. These companies then provide customers with instructions for unmasking the chemicals upon receipt.
“There is more bad news coming. With every investigation, with every indictment, we are coming after you,” warned Milgram.
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