The House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party has determined China subsidizes the manufacturing and export of fentanyl precursors. The Select Committee released its finding in an April report titled "The CCP's Role in the Fentanyl Crisis."
The committee found the CCP "directly subsidizes the manufacturing and export of illicit fentanyl materials and other synthetic narcotics through tax rebates," according to the report. The rebates occur despite the fact that many of the fentanyl precursors are illegal under Chinese laws. The CCP has never disclosed the rebate program. Additionally, the investigation found that the CCP "gave monetary grants and awards to companies openly trafficking illicit fentanyl materials and other synthetic narcotics."
The CCP also holds ownership interest in multiple Chinese companies that have been linked to drug trafficking, according to the report. One example is a publicly traded Chinese company that hosts "thousands of solicitations of open drug trafficking on its sites." The CCP has neglected to prosecute fentanyl manufacturers and has not cooperated with U.S. law enforcement investigations, even notifying targets when they become the subject of U.S. investigations.
The CCP "strategically and economically benefits from the fentanyl crisis," according to the report. It says Chinese chemical manufacturers are being enriched while an average of 200 Americans die every day from fentanyl. Fentanyl is the leading cause of death for Americans between the ages of 18 and 45.
The committee recommended creation of a Counter Opioids Joint Task Force to address the global illicit fentanyl supply chain. It also called on Congress to "support international cooperation among law enforcement agencies to hold bad actors accountable."
