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House committee finds Chinese government pushes fentanyl materials, fueling drug crisis
Just The News ^ | April 16, 2024 11:00pm | Steven Richards

Posted on 04/17/2024 6:05:12 AM PDT by Red Badger

This is the latest evidence that China has said one thing and done another when it comes to its role in the fentanyl crisis.

Anew report Tuesday detailing the Chinese Communist Party’s role in the fentanyl crisis plaguing the country details the findings of a House investigation that concluded the Chinese government subsidizes the manufacturing and export of fentanyl materials and refuses to crack down on the illicit market.

The report, released by the House Select Committee on the Chinese Communist Party, coincided with a public hearing with former Attorney General Bill Barr, former DEA Chief of Operations Ray Donovan, and an expert from the RAND research organization.

“As President Reagan once said, ‘If you want more of something, subsidize it.’ 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,” committee Chairman Mike Gallagher, R-Wis., said in his opening statement.

“And yes, it wants more dead Americans,” he added.

You can read the full report below:

File The CCP's Role in the Fentanyl Crisis 4.16.24.pdf The committee’s investigation found the Chinese government provides tax rebates to domestic companies that manufacture and export illegal narcotics, including fentanyl and similar chemicals.

The evidence also shows China continues to subsidize the manufacturing and export of fentanyl to this day, despite publicly claiming to crack down on the crisis.

According to government websites analyzed by the committee, the Chinese government made significant Value-Added Tax (VAT) rebates from 2018 to 2020 which “incentivized the export of at least 17 illegal narcotics that are Schedule I controlled substances and have no legitimate purpose,” the report concluded.

These rebates alone may have had a significant impact on the amount of fentanyl and fentanyl-like substances exported abroad, specifically to the United States. Studies cited by the committee found that for every percentage point increase in the VAT rebate for a product, exports increased by 13%.

There seems to be little doubt that the Chinese central government was unaware of this arrangement. VAT rebates for exports are directly overseen by the State Tax Administration, the central government agency that reports directly to the Chinese State Council—the highest government body which answers only to the President and Communist Party.

Additionally, the committee found the Chinese government actually increased the VAT rebate for fentanyl substances at least twice between 2018 and 2020, at the height of U.S. and Chinese diplomatic efforts to halt the drug crisis.

In 2019, China agreed to to add all fentanyl related substances to its controlled substances schedule. But, the VAT rebate policy is just the latest evidence to emerge of Chinese policy directly contradicting its promises. After the agreement, China was criticized for poor enforcement, especially as tensions between it and the United States increased during the Trump administration.

Not only did the committee identify the government subsidies, but also found the Chinese government provided grants and awards to companies which openly trafficked fentanyl.

In one case, the Shanghai local government provided grants to Shanghai Ruizheng Chemical Technology Co—a subsidiary of “the Richest Group”—as part of a “foreign trade stabilization project” for increasing exports. The Richest Group is a documented supplier of fentanyl products and openly advertises its offering of fentanyl precursors.

In another example, Gaosheng Biotechnology, a company known to sell fentanyl precursors and synthetic drugs online, was given awards from the government and received visits from government officials. Based on a review of corporate records, the committee identified a “widespread online presence” of sales accounts which “[boasted] of sales to the U.S., Mexico, U.K., Russia and Germany.”

At the time that Gaosheng sold “dangerous synthetic narcotics, including fentanyl analogues, U-47700, heroin, and methamphetamine,” these drugs were illegal under Chinese law. Gaosheng also noted that it was a state-owned enterprise and “enjoy[s] tax exemption privileges,” the committee found.

The committee found three other companies that trafficked illicit fentanyl materials and which were at least partially owned by the Chinese government.

Former Attorney General Bill Barr called this and other evidence uncovered by the committee “eye-opening,”

“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,” Barr told the committee in his opening statement Tuesday.

In November, shortly after President Biden and President Xi met face-to-face on the sidelines of an important Pacific economic forum held in San Francisco, the Biden administration announced that China agreed to resume bilateral cooperation in counternarcotics, specifically to address the ongoing fentanyl crisis.

“[The] People’s Republic of China (PRC) announced the resumption of bilateral cooperation on counternarcotics, with a focus on reducing the flow of precursor chemicals fueling illicit fentanyl and synthetic drug trafficking,” the Biden administration’s press release reads.

“The PRC is now taking law enforcement action against illicit precursor suppliers, has issued a notice to industry warning Chinese companies against illicit trade in precursor chemicals and pill presses equipment, and has committed to restart key law enforcement cooperation,” it continued.

The press release states that the PRC has agreed to advise domestic industry on the enforcement of drug laws, take law enforcement action against synthetic drug and precursor suppliers, and resume cooperation through an international narcotics database used to track potentially illicit shipments worldwide.

However, the new report from Congress shows China has previously said one thing while doing another. China has had a poor record of complying with agreements, especially when it comes to fentanyl, Just the News reported in November.


TOPICS: China; Crime/Corruption; Culture/Society; Foreign Affairs; Front Page News; Government; Politics/Elections
KEYWORDS: cartels; china; mexico
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1 posted on 04/17/2024 6:05:12 AM PDT by Red Badger
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To: Red Badger

It’s already been known that China was sending fentanyl to America. This is not news, as in new.


2 posted on 04/17/2024 6:07:11 AM PDT by Jonty30 (He hunted a mammoth for me, just because I said I was hungry. He is such a good friend. )
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To: Red Badger

To be ignored by the media. Attention to this could cause a disruption of cash flow to our elected officials.


3 posted on 04/17/2024 6:07:18 AM PDT by brownsfan (It's going to take real, serious, hard times to wake the American public.)
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To: Red Badger

WTF?

Intercept these shipments on the high seas, seize them, and embargo the ships and crews. And if they do not comply with inspection, deep six the commie retards.

Do we have a Navy or not? USE IT.


4 posted on 04/17/2024 6:08:35 AM PDT by Candor7 (Trump Trolls,He trolls for thee!),<img src="" width=500</img><a href="">tag</a>)
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To: Red Badger

Now the Red Chinese are sending their people to invade America using the Mexican-style, wade the Rio Grande method so they can live a better life working day jobs for the cartel in Mexico.


5 posted on 04/17/2024 6:08:37 AM PDT by FlingWingFlyer (Guns don't commit "gun violence." They don't even know what the hell "gun violence" is.)
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To: Red Badger

It is time for....a sternly worded letter.


6 posted on 04/17/2024 6:09:01 AM PDT by gathersnomoss (Just Give Me Truth.)
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To: Candor7

You have to be joking. From this administration? They probably run interference for them..............


7 posted on 04/17/2024 6:12:09 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: Red Badger

China have declared war on the US and the Biden administration is too clueless to recognize that.


8 posted on 04/17/2024 6:16:31 AM PDT by antidemoncrat
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To: antidemoncrat
...the Biden administration is too clueless to recognize that.

Hell, they are the sixth column!................

9 posted on 04/17/2024 6:17:55 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: Red Badger

Send dronesto kill cartel families in Mexico

Don’t worry about China


10 posted on 04/17/2024 6:18:15 AM PDT by bert ( (KE. NP. +12) Hamascide is required in totality)
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To: Red Badger

What’s the surprise; China has been pushing fentanyl for years,,,its old news.


11 posted on 04/17/2024 6:18:26 AM PDT by chopperk
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To: Candor7
I am applying for letters of marque from our fudge-packer in Chief, Pete at DOT.

Never know. Maybe the letters will come with a few torpedoes if I pretend to be a Palestinian queer.

12 posted on 04/17/2024 6:19:18 AM PDT by Candor7 (Trump Trolls,He trolls for thee!),<img src="" width=500</img><a href="">tag</a>)
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To: Red Badger

NOT news and JTN is a little slow on the uptake. Geeze.


13 posted on 04/17/2024 6:30:18 AM PDT by paulcissa (Politicians want you disarmed because they intend on doing things you would shoot them for.)
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To: Red Badger

It took congresscritters what, 5 YEARS to figure that out?

DUH!


14 posted on 04/17/2024 6:30:21 AM PDT by Uncle Miltie (DEI = Didn't Earn It!)
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To: Red Badger

100,000+ murdered per year by CHINA!

THIS IS LITERALLY WAR!


15 posted on 04/17/2024 6:31:15 AM PDT by Uncle Miltie (DEI = Didn't Earn It!)
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To: Red Badger

Dem boys and girls in Congress be right on top of it, doncha know.


16 posted on 04/17/2024 6:46:25 AM PDT by moovova ("The NEXT ELECTION is the most important election of our lifetimes!“ LOL...)
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To: Red Badger

“And yes, it wants more dead Americans,” he added.

And what about the Biden administration that has done nothing to stop it and everything to accommodate it?


17 posted on 04/17/2024 6:46:27 AM PDT by LizzieD
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To: Red Badger

Duh!


18 posted on 04/17/2024 6:47:01 AM PDT by E. Pluribus Unum (The worst thing about censorship is █████ ██ ████ ████ ████ █ ███████ ████. FJB.)
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To: Jonty30

The democrats are the party of death. They will kill everyone asap.


19 posted on 04/17/2024 6:51:15 AM PDT by cnsmom
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To: antidemoncrat

Umm...they’re leading the charge.


20 posted on 04/17/2024 6:59:02 AM PDT by Eagles6 (Welcome to the Matrix . Orwell's "1984" was a warning, not an instruction manual.)
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