The US opioid crisis began in the 1990’s when Perdue Pharmaceutical started pushing OxyContin, wrongfully claiming that it wasn’t addicting.
But when it was pulled from the market, it had already created a huge group of opioid addicts who began to look for illegal versions of the drug, and fentanyl was a cheap illegal alternative.
And now a new report uncovers details about who is behind and profiting from the fentanyl crisis that is hitting the United States hard.
Report finds CCP plays a role in the fentanyl crisis
A new report has found that the Chinese Communist Party (CCP) is playing a big role in the fentanyl crisis affecting the United States.
Details come from the findings of a House investigation which concluded that the Chinese government subsidizes the manufacturing and export of fentanyl materials, all while refusing to crack down on drug activities.
The report was released by the House Select Committee on the Chinese Communist Party in tandem with a public hearing.
Former Attorney General Bill Barr, former DEA Chief of Operations Ray Donovan, and an expert from the RAND research organization took part in the hearing.
Committee Chairman Mike Gallagher (R-WI) said, “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.”
He added, “And yes, it wants more dead Americans.”
The results of the investigation found that the Chinese government gives tax rebates to domestic companies that manufacture and export illegal narcotics like fentanyl and other similar chemicals.
Evidence found that China is still subsidizing the manufacturing and exporting of fentanyl, although it has publicly said it was cracking down on the problem.
Government websites analyzed by the committee showed that the Chinese government made significant Value-Added Tax (VAT) rebates from 2018 to 2020 that “incentivized the export of at least 17 illegal narcotics that are Schedule I controlled substances and have no legitimate purpose.”
Some of the studies the committee cited found that for every VAT percentage point increase of a rebate for a product, the exports increased by 13%.
China awards fentanyl traffickers
Aside from the government subsidies, the committee also found the Chinese government gave grants and awards to companies, even while they openly trafficked fentanyl.
For example, the Shanghai local government gave grants to a company called Shanghai Ruizheng Chemical Technology Co.
The company is a subsidiary of “the Richest Group,” which is part of a “foreign trade stabilization project” for increasing exports and is a documented supplier of fentanyl products.
The Richest Group also openly advertises that it offers fentanyl precursors.
Several other companies trafficked illicit fentanyl materials into the United States, and most were at least partially owned by the Chinese government.
Bill Barr said the report and the evidence found by the committee was “eye-opening.”
In his opening statement, Barr said, “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.”
Informed American will keep you up-to-date on any developments to this ongoing story.
