Background on the Situation
The US Department of the Treasury has imposed sanctions on Guangzhou Tengyue Chemical Co., Ltd., a Chinese company, for its involvement in the production and sale of synthetic opioids and other chemicals used as cutting agents in illicit drugs entering the United States.
Key Individuals Involved
Huang Xiaojun and Huang Zhanpeng, representatives of Guangzhou Tengyue Chemical Co., Ltd., have been sanctioned for coordinating shipments of prohibited substances to clients in the United States, according to the Office of Foreign Assets Control (OFAC).
US Response to Opioid Crisis
John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, stated, “The Treasury will use all available tools, including sanctions and prosecutions, to stop this epidemic that is destroying American lives, families, and communities.”
According to the US government, over 70% of opioid-related deaths since 2021 are linked to synthetic opioids, primarily fentanyl. Chinese-produced chemicals remain the primary source of precursors supplying the US market.
Joint Investigation by DEA and FBI
The investigation conducted by the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) revealed that Guangzhou Tengyue’s network trafficked kilograms of fentanyl, methamphetamine, and cocaine to and through the United States using local intermediaries and cryptocurrency platforms.
Major Chemical Seizure
Precursor Chemical Interception
On September 3, US authorities announced the seizure of chemical precursors intended for the Sinaloa Cartel in an international operation that intercepted 13,000 barrels (equivalent to 300,000 kilograms) of substances used in methamphetamine production.
Jeanine Pirro, US Attorney for the District of Columbia, and Todd Lyons, Acting Director of Immigration and Customs Enforcement (ICE), reported that the chemicals were intercepted at sea while being transported in two ships from Shanghai, China, bound for Mexico.
“This is the largest seizure of chemical precursors for drugs ever made by the United States,” emphasized Pirro when presenting the containers in a storage facility in Pasadena, Texas.
Key Questions and Answers
- Who was sanctioned? The US Department of the Treasury imposed sanctions on Guangzhou Tengyue Chemical Co., Ltd. and its representatives, Huang Xiaojun and Huang Zhanpeng.
- Why were these sanctions imposed? The sanctions are due to the company’s role in producing and selling synthetic opioids and other chemicals used as cutting agents in illicit drugs entering the United States.
- What is the connection between these sanctions and the opioid crisis? The US government aims to curb the opioid epidemic, with over 70% of opioid-related deaths linked to synthetic opioids, primarily fentanyl, which are largely produced in China.
- What was the major chemical seizure about? US authorities intercepted 13,000 barrels (300,000 kilograms) of chemical precursors intended for the Sinaloa Cartel, which are used in methamphetamine production.
