Major Country’s Hidden Hand in America’s Fentanyl Crisis Exposed in New Report

Clear Facts

• A new report highlights China’s significant role in the U.S. fentanyl crisis.
• The report claims the Chinese Communist Party (CCP) subsidizes and incentivizes the export of fentanyl precursors.
• The authors recommend more aggressive U.S. actions, including exposing Chinese involvement and reshoring pharmaceutical supply chains.

A recent report has brought to light the alarming role that China plays in the ongoing fentanyl crisis devastating American families. The report, titled “Holding China and Mexico Accountable for America’s Fentanyl Crisis,” calls for urgent action from the federal government against this geopolitical adversary.

Authored by Andrés Martínez-Fernández and Andrew J. Harding, the report underscores the staggering number of deaths linked to fentanyl, a drug potent enough to be lethal in minuscule doses. The report estimates that fentanyl claimed the lives of 75,000 Americans in 2023 alone.

“At the heart of this crisis is an intricate global partnership bringing together America’s top geopolitical adversary and powerful transnational criminal organizations,” the authors stated.

It is well-documented that fentanyl is often manufactured in Mexico using chemical precursors sourced from China. These illicit drugs are then smuggled across the U.S. border by drug cartels, frequently disguised in other substances, leaving users unaware they are consuming fentanyl.

While the Mexican involvement is widely recognized, the report argues that China’s role remains largely hidden from the American public.

“Indeed, unknown to most Americans, the Chinese Communist Party (CCP) is actively funding, supporting, and pushing America’s most deadly drug threat in history,” the authors wrote.

The report cites congressional findings that indicate the CCP directly subsidizes the production and export of fentanyl materials. Additionally, a tax rebate program incentivizes the export of certain fentanyl precursors, undermining China’s claims of being unable to control illegal activities by smugglers.

“It may also be possible that China might not have a full understanding of the specific precursor shipment volumes because it does not allocate a sufficient number of inspectors over its pharmaceutical chemical manufacturing industries,” the authors noted.

The report highlights that these chemicals are entering the U.S. through various channels, including air cargo, postal facilities, and maritime routes. It also mentions an increasing Chinese presence in Canadian drug networks.

The Biden administration has implemented several measures to combat the fentanyl crisis, such as increasing access to treatment and enhancing funding and technology at ports of entry. The Treasury Department has sanctioned numerous individuals and entities involved in smuggling and has used diplomatic channels to urge China to take stronger action.

However, the report warns that these efforts “are likely to ring hollow,” noting that China has a history of using negotiations to extract concessions from the U.S.

“Furthermore, China’s announcements ‘don’t carry substantial costs for [its] chemicals industry,’ meaning, as long as suppliers can evade rules—which has been documented for years, the production of fentanyl precursors will continue to prove profitable,” the authors continued.

The report also criticizes the “complicity” between corrupt Mexican officials and drug smugglers, arguing that the Mexican government has abandoned any pretense of combating the cartels.

To address these challenges, the report recommends that the U.S. acknowledge it “lacks good-faith partners in both the Chinese and Mexican governments.” The authors suggest that U.S. intelligence agencies should publicly expose Chinese involvement in fentanyl trafficking and increase penalties for financial institutions.

They also advocate for reshoring and nearshoring pharmaceutical supply chains away from China and uncovering Mexican “complicity” in the crisis.

“If the U.S. government continues to passively accept the fentanyl crisis as simply another illicit drug challenge and fails to prevent the CCP from facilitating this deadly trade, hundreds of thousands—if not millions—of Americans are at risk of losing their lives,” the authors warned.

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