U.S. committee finds China played role in fueling U.S. fentanyl crisis

China is directly subsidizing the production of illegal fentanyl precursors for sale overseas and exacerbating the opioid crisis in the United States, a U.S. congressional committee said on Tuesday, releasing the findings of an investigation it said revealed Beijing’s Incentives for deadly chemicals.

The U.S. House of Representatives Special Committee on China said in a statement that China continues to provide subsidies in the form of value-added tax rebates to companies that produce fentanyl analogs, precursors and other synthetic narcotics as long as they are sold outside China. Report.

“The People’s Republic of China classified all fentanyl analogues as controlled substances in 2019, meaning it currently subsidizes the export of drugs that are illegal under both U.S. and Chinese law,” the report said, adding that some of these substances “There is no known lawful use worldwide.”

The report cited data from the Chinese government’s State Administration of Taxation website, which lists tax rebates of up to 13% for certain chemicals. It also said it currently subsidizes two fentanyl precursors used by drug cartels – NPP and ANPP.

According to the report, the subsidies were still in effect as of April, according to the Chinese government website.

The Chinese Embassy in Washington stated that China sincerely cooperates with the US authorities in anti-drug cooperation and is carrying out special operations to control fentanyl and precursor chemicals to severely crack down on illegal smuggling, manufacturing and trafficking activities.

“Obviously, China does not have a fentanyl problem, and the fentanyl crisis in the United States was not caused by China,” embassy spokesman Liu Pengyu said at a regular press conference via email.

The U.S. State Department did not respond to a request for comment.

Mike Gallagher, the Republican chairman of the bipartisan select committee, said at a hearing on the issue on Tuesday that Chinese incentives indicate Beijing wants more fentanyl to enter the United States.

“It wants the chaos and destruction that this pandemic has caused,” Gallagher said.

Fentanyl is the leading cause of drug overdoses in the United States. The United States says China is the main source of fentanyl precursor chemicals synthesized by Mexican drug cartels. The Mexican government has also asked China to take more steps to control the transportation of fentanyl.

China denies the accusation and says the U.S. government must do more to reduce domestic demand.

The United States and China established a joint counternarcotics working group in January, following a November agreement between U.S. President Joe Biden and Chinese leader Xi Jinping to curb the production and export of fentanyl.

U.S. officials called the initial talks substantive but said more steps are needed to stem the flow of chemicals. The committee also said in its report that it found no evidence of new criminal enforcement actions by Beijing.

Ray Donovan, a former top Drug Enforcement Administration official, told the hearing that the November agreement did not change China’s support for the illegal chemical industry that supplies the Western Hemisphere.

“We need to apply more pressure,” Donovan said.