CHINA WATCHChina-Based Chemical Manufacturing Companies Charged, Executives Arrested in Fentanyl Manufacturing

The Justice Department on Friday announced the arrest of two individuals and the unsealing of three indictments in the Southern and Eastern Districts of New York charging China-based companies and their employees with crimes related to fentanyl production, distribution, and sales resulting from precursor chemicals. These indictments represent the first prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States. Specifically, the indictments allege the defendants knowingly manufactured, marketed, sold, and supplied precursor chemicals for fentanyl production in the United States in violation of federal law.

During these investigations, the Drug Enforcement Administration (DEA) seized more than 200 kilograms of fentanyl-related precursor chemicals, a quantity that could contain enough deadly doses to kill 25 million Americans.

Fentanyl is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl and its analogues have devastated communities across the United States and are fueling the ongoing overdose epidemic, which the Centers for Disease Control and Prevention (CDC) recently estimated killed approximately 110,000 Americans in 2022. Fentanyl is now the leading cause of death for Americans ages 18 to 49. Fentanyl analogues, similar in chemical makeup and effect to fentanyl, can be even more potent and lethal than fentanyl.

“When I announced in April that the Justice Department had taken significant enforcement actions against the Sinaloa Cartel, I promised that the Justice Department would never forget the victims of the fentanyl epidemic,” said Attorney General Merrick B. Garland. “I also promised that we would never stop working to hold accountable those who bear responsibility for it. That includes not only going after the leaders of the Cartels, their drug and gun traffickers, their money launderers, security forces, and clandestine lab operators. It also includes stopping the Chinese chemical companies that are supplying the cartels with the building blocks they need to manufacture deadly fentanyl.”

“Today’s announcement is a down payment on our pledge to use every tool in the government’s arsenal, in every corner of the globe, to protect American communities,” said Deputy Attorney General Lisa O. Monaco. “The Justice Department will not rest or relent in investigating and prosecuting every link of the fentanyl supply chain, including the PRC companies and executives who produce and export vast quantities of the precursor chemicals the drug cartels need to peddle their poison. There can be no safe haven.”