U.S. Targets Chinese Firms Over Fentanyl Production

1.8 min readPublished On: October 3rd, 2023By

WASHINGTON — In a firm response to the surge of synthetic opioids like fentanyl linked to overdose deaths, the Biden administration unveiled a series of indictments and sanctions targeting Chinese firms and executives implicated in the supply chain of the deadly drug.

The Justice Department has charged eight Chinese companies, accusing them of roles in advertising, manufacturing, and distributing the chemicals necessary to produce fentanyl. Concurrently, 12 executives face indictments for their alleged participation in drug trafficking operations.

This announcement preceded a scheduled visit by Biden administration officials to Mexico. Notably, Mexican drug cartels, identified by US Officials, remain a significant component of the international trafficking network supplying the illicit substance.

Attorney General Merrick Garland, during a news conference, elucidated the complexity and the global nature of the issue. “This global fentanyl supply chain, tragically culminating in American deaths, often originates with chemical firms in China. The chain encompasses the cartels’ leaders, traffickers, money launderers, covert lab technicians, security details, arms dealers, and chemical suppliers,” he said.

In a synchronized strategy, the Treasury Department declared sanctions on 28 entities and individuals from both China and Canada. These measures will effectively sever their access to the U.S. financial system and forbid any U.S.-based transactions with them. While no arrests have been confirmed, Garland voiced the administration’s intent to ensure every defendant faces justice.

Garland further emphasized the cohesive approach being adopted. “The cases revealed today represent a holistic government initiative to combat every facet of the deadly fentanyl trafficking. It’s a collaborative endeavor involving not just the Justice Department and its agencies but also counterparts from the Treasury Department, Department of Homeland Security, and the U.S. Postal Inspection Service.”

The gravity of the fentanyl crisis is evident in recent data. The Centers for Disease Control and Prevention (CDC) revealed a staggering sevenfold rise in drug overdose fatalities from 2015 to 2021. Annually, post-2020, drug overdoses account for over 100,000 deaths, with approximately two-thirds attributable to fentanyl. These figures starkly surpass the drug death toll during the 1988 crack epidemic by over tenfold.

The Biden administration’s current actions underline a commitment to curbing this escalating public health and security challenge, especially as it intertwines with international trade and relations.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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