Updated July 18, 2022
China Primer: Illicit Fentanyl and China’s Role
Addressing illicit fentanyl in the context of the ongoing
Sources and Trafficking Pathways
opioid crisis in the United States is a domestic and foreign
While not a new phenomenon, the illicit production and
policy issue for the 117th Congress. In addressing the
trafficking of fentanyl and fentanyl analogues in recent
international dimensions of the problem, policymakers have
years have been associated with rising numbers of U.S.
endeavored to stop foreign-sourced fentanyl, fentanyl-
opioid-related overdose fatalities. Clandestine laboratories
related substances (i.e., analogues and precursor chemicals),
may engage in illicit production of fentanyl, fentanyl
and emerging synthetic opioids from entering the United
analogues, and precursors. Legitimate companies may
States. U.S. counternarcotics policy has included a focus on
produce unregulated analogues and precursors, while
reducing fentanyl and fentanyl precursor flows from the
legally manufactured fentanyl pharmaceutical products may
People’s Republic of China (PRC, or China). Despite some
be diverted through theft and fraudulent prescriptions.
early successes, cooperation with the PRC appears to have
waned in recent years, consistent with an overall
In the years immediately prior to 2019, China was the
deterioration in U.S.-China relations.
primary source of U.S.-bound illicit fentanyl, fentanyl
precursors, and production equipment. Fentanyl and
Background
fentanyl-related substances were trafficked directly from
Fentanyl is a potent synthetic opioid used medically as a
the PRC to the United States through international mail and
painkiller and an anesthetic since it was first synthesized in
express consignment operations. Trafficking patterns have
1959. Due to fentanyl’s potential for abuse and addiction,
changed since the PRC imposed class-wide controls over all
the United Nations (U.N.) placed it under international
fentanyl-related substances, effective May 2019. Today,
control in 1964. In the United States, fentanyl is regulated
Mexican transnational criminal organizations (TCOs) are
by the Drug Enforcement Administration (DEA), pursuant
largely responsible for the production of U.S.-consumed
to the Comprehensive Drug Abuse Prevention and Control
illicit fentanyl, using PRC-sourced primary materials,
Act of 1970, as amended (21 U.S.C. §§801 et seq.).
including precursor chemicals that are legal to produce and
export in China. According to DEA assessments cited by
Fentanyl and its analogues have emerged as a major
the U.S.-China Economic and Security Review
international drug control problem. Overdose deaths from
Commission, Chinese traffickers and money launderers
their abuse have continued to rise in the United States, and
appear to have increased cooperation with Mexican cartels.
a growing number of fentanyl analogues appear marketed
for nonmedical, often unregulated use. As of November
In February 2022, the U.S. Commission on Combating
2021, the International Narcotics Control Board—an
Synthetic Opioid Trafficking, established pursuant to
independent expert body that monitors government
Section 7221 of the National Defense Authorization Act for
compliance with international drug control treaties—
Fiscal Year 2020 (P.L. 116-92), concluded that the PRC’s
reported the existence of more than 150 fentanyl-related
chemical and pharmaceutical sectors have “outpaced the
substances with no currently known legitimate uses. The
government’s efforts to regulate them, creating
U.N. Office on Drugs and Crime estimates that laboratories
opportunities for unscrupulous vendors to export chemicals
could potentially synthesize thousands of other fentanyl
needed in their illegal manufacture.” Moreover, the
analogues. As of June 2022, more than 30 fentanyl-related
commission found that traffickers’ exploitation of existing
substances, including precursors, are scheduled for
global logistics and trade networks (e.g., postal, courier,
international control pursuant to the U.N. Single
and commercial cargo systems), as well as widely used
Convention on Narcotic Drugs of 1961, as amended, and
online marketing and communication platforms, including
the U.N. Convention Against Illicit Traffic in Narcotic
those with encryption capabilities, challenge law
Drugs and Psychotropic Substances of 1988.
enforcement detection of fentanyl-related flows. The U.S.
Department of the Treasury’s Financial Crimes
In 2017, U.N. member states agreed to list two fentanyl
Enforcement Network has reported that traffickers also
precursor chemicals on Table I of the 1988 Convention,
exploit features of the dark web and cryptocurrencies to
subjecting them for the first time to international controls:
procure and purchase fentanyl-related substances.
N-phenethyl-4-piperidone (NPP) and 4-anilino-N-
phenethyl-4-piperidone (ANPP). (In February 2018,
Addressing China’s Role
consistent with the U.N. decision, the PRC implemented
U.S. foreign policy efforts to stem the flow of illicit
corresponding domestic controls.) In March 2022, U.N.
fentanyl-related substances into the United States have
member states decided to add three more fentanyl
focused on bilateral engagement and multilateral
precursors under international control: 4-anilinopiperidine
cooperation with entities including the United Nations and
(4-AP), 1-(tert-butoxycarbonyl)-4-phenylaminopiperidine
other stakeholders on such goals as scheduling more
(boc-4-AP), and N-phenyl-N-(piperidin-4-yl) propionamide
fentanyl analogues and precursors for drug control. Such
(norfentanyl).
efforts fit within broader goals of targeting the foreign
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China Primer: Illicit Fentanyl and China’s Role
supply of U.S.-destined illicit drugs, which has long been a
U.S. actions (e.g., unilateral sanctions) have compounded
pillar of U.S. counternarcotics strategy and features
their frustrations. The U.S. Department of the Treasury’s
centrally in the Biden-Harris Administration’s April 2022
Office of Foreign Assets Control has designated more than
National Drug Control Strategy (the Strategy).
20 mainland China or Hong Kong-based persons in relation
to fentanyl trafficking. The effectiveness of such sanctions
With respect to the PRC, the 2022 National Drug Control
targeting individuals and entities associated with fentanyl-
Strategy prioritizes increased collaboration “on shared drug
related operations remains unclear. The PRC protested the
priorities” and continued engagement “to reduce diversion
addition of the MPS’s Institute of Forensic Science and
of uncontrolled precursor chemicals.” The Strategy further
others to the Department of Commerce’s Entity List in May
identifies increasing real-time law enforcement information
2020, asserting in September 2021 that the action has
sharing about precursor trafficking incidents from China or
“seriously affected China’s examination and identification
India to North America as a measurable objective of its
of fentanyl substances and hindered the operation of its
supply reduction goals. The Strategy specifies that, by
fentanyl monitoring system” and “greatly affected China’s
2025, it seeks to increase incident reporting by 125%, from
goodwill to help” the United States on counternarcotics.
a 2020 baseline of 6 incident reports (i.e., up to 14 reports).
Some U.S. objectives for cooperation with China on
Early Successes
addressing illicit fentanyl supply remain unmet. To date, the
U.S.-PRC cooperation on fentanyl has yielded successes:
PRC has not reported taking action to control additional
fentanyl precursors, including 4-AP, boc-4-AP, and
In December 2018, on the sidelines of a G-20 meeting in
norfentanyl. Coronavirus Disease 2019 (COVID-19)
Argentina, the PRC announced its intention to pursue
pandemic-related restrictions on travel and in-person
class-wide scheduling of all fentanyl-class substances; it
meetings reportedly have prevented formal U.S.-PRC
said it did so, in part, “to respond to the U.S. side’s
concern.” The
engagement through the Bilateral Drug Intelligence
PRC followed through on its commitment
Working Group and the Counter Narcotics Working Group.
in May 2019, when it added all fentanyl-related
substances not already scheduled to its “Supplementary
Some PRC nationals indicted in the United States on
fentanyl trafficking charges remain at large; the PRC at
List of Controlled Narcotic Drugs and Psychotropic
times resists cooperating with U.S. authorities to bring
Substances with Non-Medical Use.”
indicted individuals to justice on the grounds that the
In November 2019, a joint U.S.-China investigation
substance of the allegations do not constitute violations of
resulted in a PRC court sentencing nine defendants for
PRC law. With respect to financial crime, the U.S. State
trafficking fentanyl to the United States; the
Department’s 2021 International Narcotics Control Strategy
investigation reportedly originated with a 2017 tip from
Report (INCSR) reports that the PRC “has not cooperated
the U.S. Department of Homeland Security.
sufficiently on financial investigations and does not provide
adequate responses to requests for information.”
According to 2020 congressional testimony from a U.S.
Customs and Border Protection (CBP) official, the
Congressional Outlook
agency “regularly shares targeting information” with the
PRC’s Ministry of Public Security (MPS) and the
The 117th Congress has monitored developments and
proposed legislation addressing China’s role in illicit
General Administration of China Customs. Pursuant to a
bilateral agreement, China’s postal service, China Post,
fentanyl trafficking. The U.S. Commission on Combating
Synthetic Opioid Trafficking has proposed policy
provides the U.S. Postal Service (USPS) with advanced
recommendations to support PRC oversight and
electronic data (AED) on parcels mailed to the United
enforcement over its chemical and pharmaceutical
States. The data help CBP target high-risk shipments for
industries. Relevant bills in the 117th Congress include H.R.
inspection. In testimony at the same 2020 hearing, a
4521 and its companion S. 1260, which contain reporting
USPS official described AED sharing as “a major
requirements regarding U.S. government efforts to address
accomplishment, and likely due to cooperative efforts
over the course of several years.”
illicit fentanyl-related cooperation with the PRC. Additional
issues for the 117th Congress may include implementation
The PRC approved the U.S. Drug Enforcement
of the President’s National Drug Control Strategy; the
Administration’s (DEA’s) request to open additional
effects of COVID-19 on trafficking flows and bilateral
offices in the country. DEA presently maintains offices
cooperation; and whether additional foreign policy tools,
in Beijing, Shanghai, Guangzhou, and Hong Kong. All
such information sharing, are needed to address emerging
but the Guangzhou office are operational.
trends in synthetic opioid production and trafficking.
Congress may also consider how U.S.-China relations
Ongoing Challenges
affect narcotics control outcomes, including sanctions on
The rising tensions in the U.S.-China relationship may
PRC-based entities for nonnarcotics-related purposes.
challenge efforts to sustain progress on illicit fentanyl. The
Biden administration’s counternarcotics policy focuses on
Liana W. Rosen, Specialist in International Crime and
addressing the diversion of legal chemicals for the
Narcotics
manufacture of illicit drugs. PRC officials have expressed
Ricardo Barrios, Analyst in Asian Affairs
frustration that their efforts to cooperate with the United
Susan V. Lawrence, Specialist in Asian Affairs
States on drug matters have not led to progress in other
areas of the relationship, such as trade.
IF10890
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China Primer: Illicit Fentanyl and China’s Role
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https://crsreports.congress.gov | IF10890 · VERSION 10 · UPDATED