China giving tax rebates, grants to Chinese companies manufacturing materials used to make fentanyl
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The Chinese Communist Party (CCP) has subsidized the manufacturing and export of materials used to make fentanyl and other synthetic drugs, according to a new House report.
The bipartisan report found that under the leadership of the CCP, the People’s Republic of China (PRC) gives tax rebates and grants to companies that make certain fentanyl and synthetic drug precursors used by drug traffickers as long as they are sold outside of China.
"Through its actions, as our report has revealed, the Chinese Communist Party is telling us that it wants more fentanyl entering our country," said Rep. Mike Gallagher, the Republican chairman of the special House committee. "It wants the chaos and devastation that has resulted from the epidemic."
The report found that the Chinese government holds ownership interest in several companies tied to drug trafficking, and even thwarted investigations into illicit manufacturers by warning the targets of an investigation when U.S. law enforcement sent a formal request for assistance.
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Chairman Mike Gallagher, R-Wis., and ranking member Rep. Raja Krishnamoorthi, D-Ill., of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party released a report on Tuesday that shows China is fueling the global opioid crisis. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
The committee also said the PRC has failed to prosecute fentanyl and precursor manufacturers, and found no evidence of new criminal enforcement actions by Beijing.
Most overdose deaths in the U.S. continue to be linked to fentanyl and other synthetic opioids. (DON EMMERT/AFP via Getty Images)
Rep. Raja Krishnamoorthi, D-Ill., the top Democrat on the committee, said Chinese companies are also currently selling synthetic opioids on their websites, and pointed to a screenshot of one such solicitation that committee staff found just Monday night in advance of the hearing.
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"There are hundreds of these website posts — hundreds," Krishnamoorthi said. "This is completely unacceptable."
Gallagher and Krishnamoorthi called for forming a task force to combat the global illicit fentanyl supply chain and advised for more sanctions against those involved in drug trafficking.
The Associated Press contributed to this report.
