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House Report: China subsidizes fentanyl trafficking as asymmetric warfare

'The Select Committee found thousands of PRC companies openly selling these illicit materials on the Chinese internet—the most heavily surveilled country-wide network in the world.'
FPI / April 17, 2024

Geostrategy-Direct

Xi Jinping’s government regards support for the export of the deadly drug fentanyl as a form of asymmetric warfare that is part of China’s communist ideological battle with the United States and the West, according to a bipartisan report by the House Select Committee on the Chinese Communist Party.

The report quotes from the 1999 book by two PLA colonels called “Unrestricted Warfare,” which urges the military to use all forms of warfare to achieve its strategic goals, including “drug warfare — obtaining sudden and huge illicit profits by spreading disaster in other countries.”

“The PRC-sourced illicit fentanyl and fentanyl precursors have indeed ‘spread disaster’ in the United States,” the committee’s report states.

Despite its denials, the communist government in Beijing is supporting illicit trade in fentanyl by offering tax rebates and other incentives to manufacturers in China, the report says.

The Chinese government provided grants and awards to companies “openly trafficking illicit fentanyl materials and other synthetic narcotics,” the report states.

Committee investigators found in a review of seven e-commerce sites in China more than 31,000 instances of Chinese companies selling controlled chemicals used by drug traffickers.

“Undercover communications with PRC drug trafficking companies (whose identities were provided to U.S. law enforcement) revealed an eagerness to engage in clearly illicit drug sales with no fear of reprisal,” the report says.

The report said China “strategically and economically” benefits from the fentanyl crisis that has helped Chinese organized crime groups prosper as leading global money launderers while enriching the Chinese chemical industry.

Committee investigators used data gathered from the Chinese government’s Internet which revealed extensive links between fentanyl trafficking and the Chinese government which is under tight control by the CCP.

The communist government “directly subsidizes the manufacturing and export of illicit fentanyl materials and other synthetic narcotics through tax rebates,” the report said.

“Many of these substances are illegal under the PRC’s own laws and have no known legal use worldwide,” the report says. “Like its export tax rebates for legitimate goods, the CCP’s subsidizing of illegal drugs incentivizes international synthetic drug sales from the PRC. The CCP has never disclosed this program.”

“The CCP are not just bystanders. They are prime movers,” former Attorney General William P. Barr said during a committee hearing on the report.

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