US Imposes Sanctions on Chinese Companies in Effort to Disrupt Fentanyl Supply Network

The United States has imposed sanctions on 25 Chinese firms and individuals believed to be involved in the manufacturing of chemicals used to produce fentanyl, a powerful opioid that has played a significant role in the ongoing drug crisis in the US. Attorney General Merrick Garland highlighted that the chain of illicit fentanyl production frequently begins with chemical companies in China. China's embassy in Washington has not yet responded to requests for comment. Previously, the Chinese government denied the existence of illegal fentanyl trafficking between China and Mexico after Mexican President Andrés Manuel López Obrador called for Chinese assistance in halting the alleged flow of fentanyl into Mexico. US authorities attribute the supply of fentanyl to Mexican drug cartels, which distribute the drug across the country. While fentanyl can be legally prescribed, an increase in opioid addiction has led to a surge in illegal production and overdoses, resulting in a record 109,680 deaths in 2022. The US Treasury Department has announced sanctions against a "China-based network" involved in fentanyl precursor manufacturing and distribution, as well as other illegal drugs. The entities in the fentanyl supply chain frequently employ fraudulent practices to avoid detection by law enforcement. The sanctions will freeze the assets of the sanctioned entities in the US and prohibit American individuals from engaging in transactions with them. Attorney General Merrick Garland and other senior officials are scheduled to travel to Mexico for meetings focusing on combating illegal drug supply. Garland stated that the US is aware of the individuals responsible for distributing fentanyl and that the network includes cartel leaders, drug traffickers, money launderers, lab operators, security forces, weapons suppliers, and chemical suppliers. Additionally, the Justice Department has unsealed indictments against eight Chinese companies and twelve employees for crimes related to fentanyl and methamphetamine production, opioid distribution, and sales stemming from precursor chemicals. The Chinese government has not cooperated with US authorities in these investigations, and no arrests have been made thus far.