A recent report from the U.S. House of Representatives Select Committee on the Chinese Communist Party has drawn attention to China's alleged role in fueling the fentanyl crisis in the United States.
The report suggests that China is indirectly supporting the crisis by providing tax rebates to companies involved in manufacturing and exporting raw materials for the drug.
The report highlights China as a major source of illicit fentanyl precursors, with Chinese companies responsible for producing a significant portion of these key ingredients. It also implicates the Chinese Communist Party (CCP) in having interests in some of these companies.
Despite both countries pledging to cooperate in combating the global trafficking of fentanyl, the U.S. accuses China of failing to regulate online sales of these materials effectively. This failure has contributed to the proliferation of fentanyl-related products on e-commerce platforms and social media, often disguised as prescription drugs like Percocet, Xanax, or Adderall.
Former U.S. Attorney General William Barr emphasized the need for China to cease the production and export of fentanyl and its raw materials to address the crisis effectively. He pointed out that the majority of fentanyl raw materials originate from China and that halting their production would significantly mitigate the crisis.
The report also criticizes China's value-added tax refund policy, which effectively subsidizes the export of fentanyl raw materials and has led to a surge in exports in recent years. Several state-owned enterprises in China are involved in these exports, including Gaosheng Biotechnology and Yafeng Biological Technology.
Although there was a consensus between the leaders of the U.S. and China to combat fentanyl in November last year, former U.S. officials claim that China has not taken sufficient action since then. Suggestions for disrupting the fentanyl supply chain include strengthening container inspections and cracking down on related chemicals and drug advertisements online.
Former U.S. Attorney General Barr advocates for incorporating economic and trade policies to address the fentanyl issue effectively. He believes that relying solely on the goodwill of the Chinese government is insufficient and calls for punitive measures and accountability mechanisms.
