Report: China fuels flow of fentanyl, thousands of deaths

The Chinese Communist Party, or CCP, is giving tax rebates to entities that export precursor chemicals for manufacturing fentanyl, according to a Heritage Foundation report released Monday. In 2023, nearly 75,000 people died of opioid overdoses in the United States, compared to just over 58,000 U.S. troops who died in the Vietnam War. The report highlights April House Select Committee findings that the CCP subsidizes companies that manufacture fentanyl analogs, precursors, and other narcotics—as long as they sell them outside of China.

How is it getting to the United States? Mexican cartels are the main middlemen between Chinese precursor chemicals and U.S. citizens, according to the Drug Enforcement Administration. Companies in China ship precursor chemicals to cartels in Mexico, the cartels manufacture them into drugs in clandestine labs, smuggle them to the U.S., and then launder the money through Chinese organizations, according to the DEA.

How has China responded to U.S. concerns? China launched a joint counternarcotic task force with the United States in February. However, fentanyl trafficking has continued to be a problem. A record half-ton seizure was reported at the Mexico-Arizona border in August. The flow of the precursor chemicals remains a major negotiating point of U.S. diplomacy with China. White House National Security Advisor Jake Sullivan during a visit to Beijing in late August said that he was looking for further progress on the issue.

What can America do about it? As of its May report, the DEA is focused on stopping two Mexican cartels, the Sinaloa Cartel and the Jalisco Cartel—the main and most dangerous criminal organizations in Mexico, the agency said. The Justice Department arrested leaders of the Sinaloa cartel in July. Meanwhile, the House Select Committee called for increased sanctions on any Chinese company that participates in exporting illegal drugs.

Dig deeper: Read Joanna Insco’s report in Compassion on a new way Americans are using fentanyl. The precursor chemicals are often shipped to Mexico to be manufactured into drugs and then smuggled into the U.S., according to another House report.