EXCLUSIVE Limited Chinese cooperation hindering U.S. fentanyl fight -congress report

A man who lives on the streets of San Francisco, California shows what he says is the synthetic drug fentanyl. February 27, 2020. REUTERS / Shannon Stapleton / File Photo

Aug 24 (Reuters) – Weak cooperation between the US and Chinese authorities is hindering efforts to curb increasingly sophisticated forms of the fentanyl trade, according to a US congressional report audited by Reuters.

The report by the US-China Economic and Security Review Commission, due to be released on Tuesday, said US authorities have determined that cooperation with Chinese counterparts “remains limited”.

An explosion in the use of fentanyl, a synthetic opioid 50 times more potent than heroin, and its analogues propelled the most devastating chapter of America’s long-running opioid and substance abuse crisis.

Tackling fentanyl smuggling has become a top priority for US authorities as the number of overdose deaths rose to more than 93,000 in 2020, mostly related to fentanyl, according to preliminary data from the National Center for Health Statistics stand.

The death toll rose more than 21,000, dwarfing a record from a year earlier.

Although China bans fentanyl and similar variants in 2019, the Asian nation remains the primary source of illicit fentanyl and fentanyl-related substances trafficked into the United States, the report said.

Cooperation has improved as US officials set up working groups, held high-level meetings and exchanged information with Chinese partners that led to arrests.

The advisory panel warned, however, that there are “significant gaps in US-China cooperation on drugs.”

Chinese regulators are delaying requests for access to inspection and investigation of potential sites where companies illegally manufacture precursor chemicals that Mexican and other foreign drug cartels use to manufacture fentanyl.

“Inquiries are often delayed for days so that any illegal operation can evacuate or clean the premises,” the report said.

Chinese cooperation “is also lagging behind in money laundering investigations, law enforcement and legal assistance in ongoing cases,” added the advisory panel.

The Chinese Foreign Ministry did not immediately respond to a request for comment.

Beijing has cited its regulatory moves in the past as evidence of its commitment to curb the flow of synthetic drugs to the United States and elsewhere.

FENTANYL SHIPPING AUTUMN

The amount of finished fentanyl shipped from China to the US has decreased since Beijing’s ban on the synthetic drug in 2019. But illegal fentanyl from China is still widespread in the US, the report said.

The US Drug Enforcement Administration (DEA) believes that Chinese human traffickers have moved from manufacturing finished fentanyl mainly to exporting precursors to Mexican cartels that manufacture illegal fentanyl and deliver the end product.

The authors of the Congressional report, entitled “Illicit Fentanyl from China: An Evolving Global Operation,” warned that human traffickers are becoming more sophisticated and that both the Chinese and US authorities are having difficulty adjusting.

In addition to relocating some production to India, Chinese smugglers rerouted deliveries via third countries and used new marketing methods to circumvent local regulations designed by Beijing.

“China’s weak surveillance and regulation of its chemical and pharmaceutical industries also enables circumvention and circumvention,” the report said.

Chinese traffickers are stepping up their cooperation with Mexican cartels, in particular with the two largest crime syndicates, the Sinaloa cartel and the Jalisco New Generation Cartel.

Both groups operate “pill factories” in Mexican cities producing illegal fentanyl for shipping to the United States, a growing trend in recent years.

“The growing involvement of Mexican cartels and advanced money laundering programs have exacerbated the problem,” the report said.

Chinese criminals are increasingly using the Chinese banking system to launder Mexican drug money, the report said, citing a Reuters investigation into how Chinese brokers are getting rid of Colombian and Mexican money launderers.

These Chinese brokers are using financial technology, mobile banking apps and social media to bypass government agencies, the report said.

Writing by Drazen Jorgic; Editing by Daniel Flynn and Richard Pullin

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