US imposes sanctions on suspected Chinese fentanyl producers

The United States has issued economic sanctions against three Chinese nationals and two companies suspected of producing fentanyl and shipping the drug to the US, Treasury officials announced on Wednesday.

Three men, all of whom already face US indictments for the manufacturing and distribution of the synthetic opioid, were added to the Treasury's "Specially Designated Nationals List", which provides for the freezing of any US-based financial assets they might have.

Zheng Fujing, 36, his father Zheng Guanghua, 63, and Yan Xiaobing, 42, were named in the action along with two Shanghai-based entities, Qinsheng Pharmaceutical Technology and another group referred to in the announcement as the Zheng Drug Trafficking Organisation.

The sanctions alert was announced by the Treasury's Office of Foreign Assets Control (OFAC).

"The Chinese kingpins that OFAC designated today run an international drug trafficking operation that manufactures and sells lethal narcotics, directly contributing to the crisis of opioid addiction, overdoses, and death in the United States," Sigal Mandelker, the department's under secretary for terrorism and financial intelligence, said in a statement.

The move comes as Washington is increasing pressure on Beijing to limit the flow of Chinese-produced fentanyl into the US.

Beijing said it would designate all fentanyl derivatives as illegal starting in May, following a pledge made by President Xi Jinping to US President Donald Trump as part of trade negotiations in November.

Trump recently accused Xi of reneging on that commitment, saying on Twitter, "my friend President Xi said that he would stop the sale of Fentanyl to the United States " this never happened, and many Americans continue to die!"

Synthetic opioids like fentanyl, which has a potency around 50 times greater than that of heroin, have fuelled a growing public health crisis in the US, killing around 29,500 people in 2017.

The US government believes most of the fentanyl consumed in the US comes from China, arriving indirectly through Mexico or directly via commercial shipping services. Given its high potency, the substance can be sent in extremely small amounts, making detection difficult.

Mandelker said that Zheng and Yan had shipped "hundreds of packages" of synthetic opioids to the US through commercial carriers, having solicited customers through online advertising.

Websites for the group identified by the Treasury Department as the Zheng Drug Trafficking Organisation have been seized by the US Drug Enforcement Administration, but archived versions of the site indicate it was advertising a variety of designer drugs, including synthetic opioids.

The company, called Global RC, also said on its website that it could synthesise substances on a custom-order basis, and that it would reship any product free should a package be seized by customs agents.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved.

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