US Congressional Report: China Subsidizing America’s Fentanyl Crisis

In a damning revelation, a report by the U.S. House of Representatives Select Committee on the Chinese Communist Party has exposed China’s role in perpetuating America’s fentanyl crisis. The report alleges that Chinese firms are using tax rebates to subsidize the production and export of raw materials essential for manufacturing the deadly drug.

According to the report released on Tuesday, China emerges as “the ultimate geographic source of the fentanyl crisis,” with its companies responsible for producing the majority of illicit fentanyl precursors, the primary ingredients driving the global trade in illicit fentanyl. Furthermore, the report highlights the Chinese Communist Party’s interests in several of these companies, implicating state involvement in the crisis.

Despite pledges of cooperation between the U.S. and China to combat fentanyl trafficking, the report points out significant failures on China’s part. It alleges lax regulation of online sales of fentanyl materials through e-commerce platforms and social media, exacerbating the crisis in the United States.

Former U.S. Attorney General William Barr, speaking at a congressional hearing, emphasized the gravity of the situation, noting that fentanyl-related deaths in the U.S. surpass 200 daily, with over 97% of fentanyl raw materials originating from China. Barr underscored the deceptive nature of fentanyl distribution, often disguised as prescription medications, leading unsuspecting users to lethal doses of the drug.

The report highlights China’s implementation of value-added tax refunds since 2018, effectively subsidizing the export of fentanyl raw materials. State-owned enterprises, including Gaosheng Biotechnology and Yafeng Biological Technology, are implicated in these exports, signaling state complicity.

Former U.S. Drug Enforcement Administration operations chief Ray Donovan corroborated the findings, asserting the reliability of evidence implicating Chinese chemical manufacturers and intermediaries supported by the Chinese Communist Party.

Despite diplomatic efforts between the U.S. and China to address the fentanyl crisis, little progress has been made. David Luckey, a researcher at the RAND Corporation, emphasized the need for enhanced scrutiny of shipments from China and intensified efforts to disrupt the fentanyl supply chain.

Former Attorney General Barr advocated for a multi-faceted approach, including economic and trade policies to address the issue, stressing the necessity of punishment and accountability mechanisms. The revelations underscore the urgency for concerted action to stem the flow of fentanyl from China and mitigate its devastating impact on American communities.


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