The Chinese Communist Party subsidizes the manufacturing and export of fentanyl materials through tax rebates, according to a report released Tuesday by a House panel.
The House Select Committee on China highlighted findings that identify China as a major contributor to the flow of fentanyl into the U.S., and lawmakers provided several recommendations to address the crisis.
“Through subsidies, grants, and other incentives, the PRC harms Americans while enriching PRC companies,” the report says, referring to the People’s Republic of China.
The committee stated in its report that it has “found no evidence of new criminal enforcement actions” to reduce the flow of fentanyl chemicals into the U.S.
“This failure — when combined with new evidence establishing the PRC incentivizing the export of illegal drugs abroad and ownership stake in companies doing the same — casts doubt on the veracity of the PRC’s claims that it will act to stem the massive export of illicit fentanyl materials and other dangerous synthetic narcotics, and reinforces the need for global cooperation and communication between law enforcement agencies,” the report says.
The panel initiated an investigation into China’s role in the fentanyl crisis, which involved examining public Chinese websites, analyzing government documents, and identifying narcotics sales online, according to its report.
The report, released on Tuesday, offers recommendations to curb the flow of fentanyl components from China into the U.S. One suggestion is to establish a joint task force to counter opioids, focusing on targeting the vulnerabilities in the global illicit fentanyl supply chain.
Additionally, the report advises strengthening sanctions authorities, mobilizing trade and customs enforcement measures to restrict fentanyl trafficking, and closing regulatory and enforcement gaps.
U.S. officials have identified China as the primary source of key ingredients used by drug cartels in Mexico to synthesize fentanyl. Meanwhile, China has suggested that the U.S. has not done enough to curb domestic demand for opioids.
