The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Guangzhou Tengyue Chemical Co., Ltd., a chemical company based in China, for its involvement in the manufacture and sale of synthetic opioids and related chemicals to buyers in the United States. The sanctions also target two representatives of the company, Huang Xiaojun and Huang Zhanpeng, who were found to have coordinated shipments of these substances into the country.
“Illicit opioids coming from China are destroying American lives, families, and communities,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “Under President Trump’s leadership, we will use all of the tools at our disposal—including sanctions and prosecutions by our law enforcement partners—to stop this epidemic.”
Opioid overdoses continue to be a leading cause of death among Americans aged 18 to 45. Since 2021, over 70 percent of reported drug overdose deaths have involved synthetic opioids such as fentanyl. Chinese chemical manufacturers remain a major source for precursor chemicals used in these drugs.
The investigation was conducted with support from the Drug Enforcement Administration (DEA), including its Tampa District Office (“CHEMEX”), as well as the Federal Bureau of Investigation (FBI) and its Cincinnati Field Office.
In addition to sanctions, the FBI has announced a federal criminal indictment against Guangzhou Tengyue, Huang Xiaojun, Huang Zhanpeng, and other individuals and companies for conspiracy to commit drug trafficking under Title 21 U.S. Code 846. This indictment covers three individuals in the United States along with about 22 people and businesses based in China. The joint FBI-DEA investigation began in January 2024.
Authorities focused on a network trafficking large quantities of fentanyl, methamphetamine, cocaine, nitazenes—a class of synthetic opioid—and analgesic chemicals such as xylazine (“tranq”) and medetomidine into or through the United States. These substances are often mixed with other drugs or used as cutting agents to extend drug yield.
A DEA report from January 2024 noted that nitazenes are being trafficked due to their opioid-like effects but carry high risks including addiction and respiratory depression that can lead to death. In September 2024, increased instances of xylazine—commonly known as “tranq”—were identified in illicit drug supplies by the National Institute on Drug Abuse; this substance is resistant to standard overdose treatments like Narcan.
Despite previous indictments unsealed against Guangzhou Tengyue and its representatives in October 2024 in Florida's Middle District, evidence shows continued sales activities through early 2025 involving various controlled substances shipped into the United States.
Huang Zhanpeng serves as executive director and holds half ownership of Guangzhou Tengyue while acting as its legal representative; Huang Xiaojun is linked to bitcoin accounts allegedly used for selling controlled substances online.
OFAC designated both Guangzhou Tengyue Chemical Co., Ltd., Huang Xiaojun, and Huang Zhanpeng pursuant to Executive Order 14059 due to their roles in contributing materially or providing support toward international proliferation or production means for illicit drugs.
With these designations, any property or interests held by those sanctioned within U.S. jurisdiction must be blocked and reported; entities owned at least half by sanctioned persons are also subject to blocking measures. Transactions involving these parties are generally prohibited unless authorized by OFAC licenses or exemptions; violations may result in civil or criminal penalties under strict liability rules outlined by OFAC’s Economic Sanctions Enforcement Guidelines (https://ofac.treasury.gov/media/7106/download?inline).
Non-U.S. persons can also face restrictions if they facilitate violations directly or indirectly involving sanctioned parties—whether intentionally or otherwise—or attempt actions designed to evade U.S.-imposed sanctions (https://ofac.treasury.gov/faqs/401).
OFAC emphasizes that sanctioning powers aim not only at penalizing wrongdoers but also encouraging behavioral change consistent with legal standards (https://ofac.treasury.gov/faqs/897). Procedures exist for seeking removal from sanction lists if warranted under law.
