Fentanyl Crisis: China’s Alleged Contribution, Strong Denial

• The U.S. blames China as the primary source of fentanyl, a synthetic opioid causing a deadly crisis.
• The U.S. imposed sanctions on China-based entities allegedly supplying narcotics, leading to a shift in supply lines.
• Despite tensions, the U.S. and China agreed to restart drug control talks, with China pledging to regulate fentanyl precursors.
• Experts argue for closer U.S.-China coordination and Beijing’s tougher stance against domestic firms involved in the trade.

The United States is grappling with a deadly opioid crisis, with the synthetic opioid, fentanyl, at the heart of the epidemic. This potent drug, 50 times stronger than heroin and significantly easier and cheaper to produce, has been identified as the leading cause of death among individuals aged 18 to 45. The U.S. Drug Enforcement Agency has pointed the finger at China, labeling it as the primary source of all fentanyl-related substances trafficked into the United States. However, China has consistently denied any responsibility for the crisis.

The issue has become a significant point of contention between the two nations. U.S. President Donald Trump has imposed new tariffs on Chinese goods, partly as a response to Beijing’s alleged role in the opioid epidemic. The Congressional Research Service acknowledged that direct supplies of the drug from China had been curtailed by stricter controls implemented by Beijing in 2019. However, this has merely shifted the supply lines.

Instead of the drugs being supplied directly via international courier services, chemical components are now shipped from China to Mexico. Once in Mexico, these components are converted into fentanyl and smuggled across the border into the United States.

U.S. Sanctions and China’s Response

Many of these chemical components are legal in China and have legitimate medical uses as painkillers, which complicates prosecution efforts. Beijing has insisted that there is no such thing as illegal trafficking of fentanyl between China and Mexico and has pledged to crack down on the trade. However, it has also warned that new tariffs would inevitably affect and damage future bilateral cooperation on drug control.

The U.S. has taken significant steps to combat the fentanyl crisis. The administration of former President Joe Biden made the fight against fentanyl a priority. In October 2023, it imposed sanctions on over two dozen China-based entities and individuals alleged to be the source of supply for many U.S.-based narcotics traffickers, dark web vendors, virtual currency money launderers, and Mexican cartels.

Among the sanctioned entities were a Wuhan-based company and several other firms based in Hong Kong and mainland China. These entities were alleged to be responsible for the shipment of approximately 900 kilograms of seized fentanyl and methamphetamine precursors to the United States and Mexico.

The Future of U.S.-China Drug Control Talks

The global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China, U.S. Attorney General Merrick Garland stated last year. China, however, condemned the investigation as part of a U.S. campaign of pressure and sanctions against it. Despite the strained relations, the U.S. and China agreed to restart talks on drug control following a summit between Biden and Chinese President Xi Jinping in San Francisco in November 2023.

Last summer, a counternarcotics working group convened in Washington, and China announced it would step up its regulation of three key fentanyl precursors. However, it remains uncertain whether these latest measures will effectively halt the cross-border traffickers. The Justice Department has noted that these traffickers adapt to tightening restrictions. Manufacturers are often able to develop new variants of the synthetic precursors faster than they can be identified and added to scheduled lists of substances controlled by Chinese authorities.

Vanda Felbab-Brown, an expert on organized crime at the Brookings Institution, has argued that Beijing needs to take a tougher stance against domestic firms involved in the trade. We are nowhere close to robust indictments, robust prosecutions in either the money laundering sector or smuggling of precursors to the Mexican cartels, she stated in a podcast.

The effectiveness of tariffs in spurring greater action from Beijing remains unclear. Felbab-Brown has suggested that Beijing’s cooperation is tied to China-U.S. relations. With countries with whom China has good relations or with whom it wants to build good relations… it extends law enforcement and counter-narcotics cooperation, she explained. And with countries with whom it has bad relations or with whom relations deteriorate, it denies the cooperation.

China’s foreign ministry has cautioned Washington against taking China’s goodwill for granted. The problem is further complicated by expansive money laundering networks that underpin the trade. Experts argue that closer coordination between Washington and Beijing is required to curb these networks.

International drug cartels are increasingly turning to specialized Chinese criminal gangs for swift, cheap and secure money laundering services, Zongyuan Zoe Liu wrote in a September report for the Council on Foreign Relations. Obtaining support from Beijing to stop the flow of illicit fentanyl and its precursor chemicals is an important first step in addressing the supply problem, Liu added.

The fentanyl crisis is a complex issue that requires a multifaceted approach. The historical irony of China’s role in the global opioid crisis, given its history with the opium wars of the 19th century, is not lost. However, the stakes are high, and the need for a solution is urgent. As the world watches, the hope is that these two superpowers can navigate this complex issue and find a resolution to end the deadly fentanyl crisis.