The House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party (Select Committee) has scrutinized the role of the Chinese Communist Party (CCP) in the fentanyl crisis. The committee concluded that the CCP not only permits but also subsidizes the production and export of fentanyl precursors. These findings were released in a report titled "The CCP's Role in the Fentanyl Crisis," on April 16.
According to this report, the Select Committee discovered that the CCP "directly subsidizes the manufacturing and export of illicit fentanyl materials and other synthetic narcotics through tax rebates." This happens despite many of these fentanyl precursors being illegal under Chinese laws. The CCP has never made public this rebate program. Furthermore, it was found that the CCP "gave monetary grants and awards to companies openly trafficking illicit fentanyl materials and other synthetic narcotics."
As per the report, it is also known that multiple Chinese companies linked to drug trafficking are partly owned by the CCP. One such example is a publicly traded Chinese company that hosts "thousands of solicitations of open drug trafficking on its sites." Despite this, the CCP has failed to prosecute fentanyl manufacturers and has shown non-cooperation with U.S. law enforcement investigations, even going as far as notifying targets when they become subjects of U.S. investigations.
According to further findings in this report, fentanyl precursors are sold openly on China's "extensively monitored and controlled" internet. An analysis of seven e-commerce websites revealed over 31,000 instances of Chinese companies selling illegal chemicals tied to drug trafficking. Undercover communications with Chinese drug traffickers "revealed an eagerness to engage in clearly illicit drug sales with no fear of reprisal." Notably, content censors aimed at domestic drug sales do not apply to drug exports out of China.
The report also suggests that the CCP "strategically and economically benefits from the fentanyl crisis." Chinese chemical manufacturers are profiting while an average of 200 Americans die daily from fentanyl, which is the leading cause of death for Americans aged between 18 and 45. To address the global illicit fentanyl supply chain, the Select Committee recommended establishing a Joint Task Force – Counter Opioids (JTF - CO). Additionally, it urged Congress to "support international cooperation among law enforcement agencies to hold bad actors accountable" and directed the U.S. President to prioritize counternarcotics efforts within the intelligence community.
According to Congress.gov, the Select Committee was established in January 2023. Its purpose is to investigate and submit policy recommendations related to the economic, security, and technological advances of the CCP and its competition with the U.S.
