A U.S. congressional committee has disclosed China’s direct subsidization of the production of fentanyl precursors, exacerbating the opioid crisis in the United States.
Despite China’s classification of fentanyl analogues as controlled substances domestically, it continues to offer value-added tax (VAT) rebates to companies manufacturing these substances, provided they are sold outside of China.
This practice, outlined in a report by the House of Representatives’ select committee on China, has been identified as a significant factor in the proliferation of deadly chemicals abroad.
The report highlights that China’s subsidies extend to precursors like NPP and ANPP, which are utilized by drug cartels.
It further notes that certain chemicals receive rebates of up to 13%, as per data from the Chinese government’s State Taxation Administration website.
These subsidies, still in effect as of April, signify a persistent incentive for the production and export of illicit substances.
In response to these allegations, the Chinese embassy in Washington has reiterated China’s commitment to cooperating with U.S. authorities on drug control measures.
However, embassy spokesperson Liu Pengyu denied any direct responsibility, stating that the fentanyl crisis in the U.S. cannot be attributed to China.
Despite this denial, Republican chair Mike Gallagher asserts that China’s actions indicate a desire for increased fentanyl flow into the U.S., contributing to chaos and devastation.
Fentanyl remains a primary cause of drug overdoses in the U.S., with China identified as a major source of precursor chemicals used by Mexican drug cartels.
While the U.S. and China have initiated joint counter-narcotics efforts, concerns remain regarding the efficacy of these measures.
The committee’s report concludes that China’s subsidies for illicit chemicals persist, underscoring the need for intensified efforts to address the root causes of the opioid crisis.
