Home » House Panel Report Exposes China’s Role in U.S. Fentanyl Crisis

House Panel Report Exposes China’s Role in U.S. Fentanyl Crisis

by Richard A Reagan

Amidst an ongoing fentanyl epidemic that has claimed countless American lives, a new report from the House Select Committee on the Chinese Communist Party reveals that the Chinese government is actively facilitating the flow of fentanyl into the United States.

Fentanyl has been the leading cause of death for Americans aged 18-45, spotlighting a dire public health catastrophe. [Source]

The report, which emerged from an extensive bipartisan investigation, details how China’s communist regime subsidizes the manufacturing and export of fentanyl and related substances. 

According to the investigation, these actions are not mere oversights but are indicative of a systemic encouragement of the illicit drug trade.

Former U.S. Attorney General Bill Barr, testifying before the committee, stated, “The Committee’s work has uncovered persuasive evidence that the PRC and CCP are not just bystanders; they are the prime movers. They are knee deep in actively sponsoring, encouraging, and facilitating the production and export of fentanyl and fentanyl precursors for distribution in the United States.” [Source]

Central to the committee’s findings is the disclosure that the Chinese government offers tax rebates to companies producing and exporting these deadly drugs. [Source]

From 2018 to 2020, the Value-Added Tax (VAT) rebates reportedly incentivized the export of at least 17 illegal narcotics, including fentanyl, with no legitimate domestic use.

“Through its actions, the Chinese Communist Party is telling us that it wants more fentanyl entering our country. It wants the societal chaos and devastation that has resulted from this epidemic,” said committee Chairman Mike Gallagher (R-WI), in his opening statement.

Further investigations revealed that, in addition to VAT rebates, the Chinese government has provided grants and awards to companies openly involved in the drug trade.

Notably, Shanghai Ruizheng Chemical Technology Co, identified as a subsidiary of “the Richest Group,” received governmental support under a “foreign trade stabilization project” for increasing exports. This company is a known supplier of fentanyl precursors.

The committee’s report also points to an alarming contradiction between China’s public assurances and its actual policies.

In 2019, despite an agreement to control fentanyl substances following diplomatic talks, the Chinese government was found to have increased the VAT rebate for fentanyl substances at least twice between 2018 and 2020. This was during a peak period of U.S. and Chinese efforts to quell the crisis.

The report states, “But, the VAT rebate policy is just the latest evidence to emerge of Chinese policy directly contradicting its promises.”

As the U.S. grapples with the devastating impact of fentanyl, which includes addiction, overdose, and death, the implications of this report are profound.

The report casts a long shadow over recent cooperative pledges between President Biden and Chinese President Xi Jinping, which aimed at curbing the flow of chemical precursors used in fentanyl production.

Despite these diplomatic efforts, the report found no evidence of new criminal enforcement actions by China against the fentanyl trade, suggesting a persistent and troubling gap between promises and actions.

In response to these findings, the committee has recommended the establishment of a joint task force and has called for aggressive use of U.S. sanctions against entities involved in the fentanyl trade. 

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