China and the opioid epidemic in the United States

Smuggling of fentanyl from China to the United States has significantly contributed to the opioid epidemic in the United States, an issue that has persisted since the 1990s. Despite stringent domestic drug laws resulting in relatively low levels of drug use within China itself, the country's regulations on the production and export of drug precursors, including fentanyl, remain relatively relaxed. The Chinese government has long denied China is the main source of fentanyl to the United States, blaming the U.S. market's role in driving opioid demand, and rebuffing US's attempts for it to enforce regulations, saying it is a US domestic issue. The issue has put a major strain in China–United States relations.

History

China as a source

For years, China has been the primary source of fentanyl and its derivatives imported into the United States. A March 2019 investigative report by The Washington Post titled "The Fentanyl Failure" found that the Obama administration failed to grasp the role Chinese producers played in the fentanyl crisis and the magnitude of the epidemic itself. According to Canadian authorities, Fentanyl importers have been linked to a Chinese transnational criminal group known as the Big Circle Gang, which reportedly corrupts officials in southern China.

In June 2018, then-deputy head of China's National Narcotics Control Commission (NNCC) Liu Yuejin criticized the U.S. market's role in driving opioid demand.

Trump administration efforts

In September 2018, U.S. President Donald Trump said he would ask General Secretary of the Chinese Communist Party Xi Jinping, in their planned December 1 meeting at the G20 summit, for China to add fentanyl to a "restricted category" of drugs. In their meeting, President Xi reportedly pledged to designate fentanyl a controlled substance in China, in what was described as an unprecedented move signaling China's willingness to cooperate with the United States on restricting the flow of the synthetic drugs. Trump declared it a "game changer". and US Treasury Secretary Steve Mnuchin called it a "very, very big deal."

After a dinner at the 2018 G20 Buenos Aires summit that also led to a temporary truce in the ongoing trade war between the two nations, President Donald Trump praised Xi Jinping's pledge to strengthen China's efforts to curb fentanyl exports to the U.S. In a subsequent statement, Chinese Foreign Minister Wang Yi detailed that the agreement includes stricter supervision and regulatory revisions concerning fentanyl, alongside improved collaboration with U.S. law enforcement.

Six months later, China said it would place a blanket ban on fentanyl-related substances and variants on May 1, and U.S. and Chinese negotiators met in Beijing and Washington to hammer out a deal to present to Presidents Xi and Trump. In a press conference announcing the new regulations, Liu Yuejin said the U.S. concerns about unregulated production and export were "resolved, all resolved", reiterating the Chinese government's long-standing position that U.S. drug culture and over-prescription by doctors were to blame for the crisis, saying that contrary to U.S. law enforcement allegations, opioid shipments from China to the United States were "extremely limited".

In August 2019, Trump accused Xi of failing to meet his promise to stop the sale of fentanyl to the United States, after months of praising Xi for his pledges, and announcing a new round of tariffs after failed U.S.-China trade talks. In September 2019, Liu Yuejin that China and the United States had only "limited" cooperation in stopping fentanyl smuggling, reiterating previous denials that China is the primary source of fentanyl smuggled into the United States, saying "what Trump said is completely groundless and untrue".

In November 2019, the NNCC held a press conference about a joint operation between US and Chinese authorities cracking down on fentanyl smugglers.

According to a 2020 report from the Drug Enforcement Administration (DEA), fentanyl shipments into the U.S. dropped since the ban.

Shift to Mexico

In a report published by The Wire China, the redirection of fentanyl production to Latin America, particularly Mexico, marked a significant evolution in drug trafficking dynamics. According to a 2020 DEA intelligence report on fentanyl flow to the United States, China has strategically shifted its opiate smuggling operations to South America in recent years, capitalizing on the region's extensive networks and porous borders. This move comes as a response to heightened global scrutiny and crackdowns on drug trafficking originating from China. Leveraging its economic and diplomatic ties with various South American countries, China has established clandestine routes and partnerships with local criminal organizations to facilitate the transportation of opiates, including heroin and synthetic opioids, to international markets. This shift not only allows China to evade detection and law enforcement efforts targeting its traditional smuggling routes but also enables it to diversify its illicit activities while maintaining a significant presence in the global drug trade.

On May 6, 2023, Mexican President Andrés Manuel López Obrador announced that Mexico has evidence of fentanyl shipments from China, following the interception of a container at the Pacific port of Lázaro Cárdenas, and reiterated requests for Chinese cooperation to halt these illegal deliveries.

On October 3, 2023, roadside banners in Sinaloa, allegedly signed by Los Chapitos, the sons of former drug lord Joaquin "El Chapo" Guzman, declared a ban on the production, sale, and transportation of fentanyl within the state, although analysts remained skeptical of the group's commitment to ceasing such a lucrative trade.

US sanctions Chinese and Mexican companies

See also: United States sanctions against China

On May 30, 2023, The U.S. Treasury Department imposed sanctions on over a dozen Chinese and Mexican companies, accusing them of providing equipment for manufacturing counterfeit fentanyl-laced pills, a key factor in America's opioid crisis.

On June 23, 2023, the U.S. Justice Department initiated criminal proceedings against four Chinese chemical manufacturing companies and eight individuals, accusing them of illegally trafficking the precursor chemicals necessary for producing fentanyl. This marked the first instance where the U.S. sought to legally address the role of Chinese suppliers in the fentanyl epidemic. The charges, outlined by Deputy Attorney General Lisa Monaco, represented a pivotal shift in U.S. strategy, focusing on disrupting the supply chain of precursor chemicals at its source, amid broader efforts to combat the synthetic opioid crisis.

On October 3, 2023, the U.S. Treasury imposed sanctions on 25 Chinese individuals and entities linked to fentanyl production and distribution, alongside sanctions against Canadian entities involved in importing drug-making chemicals. These actions, coupled with a series of indictments by the Department of Justice against Chinese groups and executives, highlight a concerted U.S. strategy to dismantle the global supply chain of synthetic opioids, particularly fentanyl. China criticized the sanctions as detrimental to bilateral anti-narcotics collaboration, amid broader geopolitical tensions affecting negotiations.

Biden administration era and Blinken, Yellen visits to China

In a report on July 7, 2013, the Biden administration was said to be intensifying efforts to engage China in combating the fentanyl crisis affecting the U.S., amidst broader geopolitical strains that have hindered collaborative drug interdiction efforts. Despite previous cooperation and China's 2019 ban on all fentanyl variants, geopolitical tensions over issues such as trade, human rights, and regional security have stalled progress, with the U.S. accusing China of inadequate control over fentanyl precursor chemicals.

On a visit to Beijing on June 18, 2023, U.S. Secretary of State Antony Blinken reportedly sought China's cooperation in curbing the production of fentanyl precursors during discussions that touched on various contentious issues. Blinken's diplomatic outreach aimed to restart cooperation, which had stalled due to geopolitical tensions and disagreements over drug trafficking responsibilities.

In a subsequent visit on July 6–9, US Treasury Secretary Janet Yellen to Beijing aimed at stabilizing the strained economic relations between the U.S. and China, building on the diplomatic groundwork laid by Secretary of State Antony Blinken in June. During her visit, Yellen engaged in discussions on key global challenges, aiming to responsibly manage bilateral tensions and reaffirm the U.S.'s commitment to not seeking economic advantages or decoupling from China, despite ongoing concerns over national security and human rights. Her agenda focused on fostering direct communication and cooperation on challenges such as climate change and international debt crises, highlighting the importance of a balanced economic relationship and mutual economic prosperity.

On July 24, 2023, The Biden administration reportedly considered lifting sanctions on a Chinese police forensics institute implicated in human rights abuses against the Uyghurs to regain Beijing's cooperation in addressing the fentanyl crisis. During a July 2023 visit, U.S. Secretary of State Antony Blinken had proposed creating a working group to revive discussions on fentanyl, but Chinese officials insisted that the U.S. first remove sanctions on the institute as a prerequisite for resuming joint narcotics control efforts.

In November 2023, China and the US were to reported to be set to finalize a deal to crack down on the export of chemicals used to make fentanyl at an upcoming summit between Joe Biden and Xi Jinping, marking a significant move in efforts to curb the opioid crisis in the US. After their meeting in California, Joe Biden and Xi Jinping announced a new agreement whereby China will instruct its chemical companies to reduce shipments of materials used to produce fentanyl, a step recognized as significant but not sufficient to solve the U.S. overdose crisis.

2024 U.S. House Panel report

In a report published on April 16, 2024, the United States House Select Committee on Strategic Competition between the United States and the Chinese Communist Party accused China of exacerbating the fentanyl crisis in America by subsidizing the production of precursor chemicals used in making the drug, intended for sale outside China, which contributes significantly to U.S. overdose deaths. The report highlights discrepancies between China's stated cooperation on narcotics and its actions, including tax rebates to producers of specific fentanyl precursors and the Chinese government's alleged interference with U.S. investigations by alerting potential targets. Since 2019, the Chinese government has removed online records of subsidies for fentanyl-related producers.

See also

• Opioid epidemic in the United States