The United States on Wednesday sanctioned a Chinese chemical company that it alleges is manufacturing and coordinating shipments of illicit opioids, such as fentanyl, and chemical agents into the country. The move comes amid recent stepped-up moves in Washington to target China on the fentanyl issue despite stabilising bilateral ties.
A Treasury Department statement said sanctions have been placed on Guangzhou Tengyue Chemical, based in China’s southern Guangdong province, and two of the company’s representatives.
“China-based chemical manufacturing companies remain the primary source of fentanyl precursor chemicals and other illicit opioids entering the United States,” the statement said, adding that Guangzhou Tengyue “pushes poison for profit”.
The Federal Bureau of Investigation also announced on Wednesday a federal criminal indictment against individuals and businesses in the US and China for conspiracy to commit drug trafficking and facilitating the flow of illicit drugs and cutting agents into the US.
A separate statement from the State Department also accused China of playing a central role in America’s fentanyl crisis “not merely by failing to stem the ultimate source of many illicit drugs distributed in the United States, but by actively sustaining and expanding the business of poisoning our citizens”.
Overdoses from synthetic opioids like fentanyl are the leading cause of death among young Americans aged 18 to 45, it added.
The latest action follows Tuesday’s House passage of the Stop Chinese Fentanyl Act. That legislation would impose sanctions on Chinese officials, manufacturers and distributors who “intentionally avoid taking action” to prevent the trafficking of fentanyl and other synthetic opioids into the US.
To become law, the bill still must pass the Republican-controlled Senate and be signed by US President Donald Trump.
Last week, the Trump administration also prodded American banks and other financial institutions to tighten monitoring of suspected Chinese money-laundering networks it says fuel fentanyl addiction.
A related advisory issued by John Hurley, Treasury undersecretary for terrorism and financial intelligence, highlighted how informal Chinese money-laundering operations work with Mexican drug cartels to evade and circumvent financial safeguards.
“The United States will not stand by and allow nefarious actors to launder illicit proceeds through our financial system,” the advisory said.
The string of moves surrounding China’s alleged role in the flooding of fentanyl into America comes as the two countries prepare for their next round of trade negotiations, to be held before November 10, when a 90-day tariff truce expires and likely before a meeting between Trump and his Chinese counterpart, Xi Jinping.
Trump imposed import tariffs of 20 per cent on Chinese goods in February to pressure Beijing to stem the inflow of fentanyl ingredients in the synthetic drug trade. These duties remain in effect, notwithstanding the extended ceasefire in the tariff war between the two countries.
In its response, Beijing has countered that it is willing to work with Washington on cooperative anti-drug policies if there is mutual respect. State media also stress that China must not be made a scapegoat for America’s crises and that unfair fentanyl tariffs must be removed.
Since June, Beijing has taken fresh counter-narcotics steps, when a meeting between Minister of Public Security Wang Xiaohong and US Ambassador to China David Perdue was held. Trump said in the following month that China was taking “big steps” in controlling fentanyl. -- SOUTH CHINA MORNING POST
