The U.S. House Select Committee on China released a report asserting that the Chinese Communist Party (CCP) subsidizes the production and export of fentanyl materials, exacerbating the fentanyl crisis in the United States. The report was made public ahead of a congressional hearing scheduled for Tuesday, where further details of China’s involvement are expected to be discussed by Chairman Mike Gallagher (R-Wis.) and Ranking Member Raja Krishnamoorthi (D-Ill.).
According to the committee’s findings, the CCP provides tax rebates and other incentives to companies producing and exporting illicit fentanyl, despite the substances being illegal under both Chinese and international law. The report highlights a failure by China to take new criminal enforcement actions against the flow of fentanyl chemicals into the U.S., casting doubt on the PRC’s commitment to curbing this issue.
The investigation by the House panel included examining public Chinese websites, government documents, and online narcotics sales, which revealed a systematic approach by the CCP to encourage the production and export of fentanyl precursors. This approach reportedly includes direct subsidies to manufacturers and an ownership stake in these companies.
The panel’s report also criticizes China’s non-cooperation with U.S. law enforcement agencies and notes instances where Chinese authorities have allegedly notified targets of U.S. investigations following American requests for assistance.
The implications of these findings are significant, as fentanyl remains the leading cause of death for Americans aged 18-45. In response, the committee has made several recommendations to address the crisis, including the establishment of a joint task force and the aggressive use of U.S. sanctions against entities involved in the fentanyl trade.
This report comes despite previous discussions between U.S. President Joe Biden and Chinese President Xi Jinping, which aimed to stem the flow of fentanyl precursors from China to the United States. The findings suggest a disconnect between China’s stated policies and the actions observed by the U.S. House committee.
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