How China Trapped Itself in America’s Fentanyl Crisis

Central policy and money laundering have created networks that aid traffickers.

A mixture of unintended consequences and indifference has left China playing a significant role in America’s fentanyl crisis. This has become a point of heated contention between Beijing and Washington. U.S. politicians accuse China of deliberately stoking the U.S. drug crisis; China responds that it has done its part and the United States is scapegoating.

But the actual story of Chinese regulation is far more complex and messy—and shows how powerful the profit motive is and how regulatory effects can have unintended consequences. The Chinese government regulates the production and distribution of fentanyl and its precursor chemicals, but stopping the trade is a challenge. Policies aimed at boosting China’s chemical and pharmaceutical development and exports have instead created a vast cottage industry of hundreds of thousands of small chemical plants and active pharmaceutical ingredient (API) manufacturers—and with it, a vast money laundering industry that takes advantage of the advanced real-time settlement capabilities of China’s banking system.

A U.S. Customs and Border Protection (CBP) officer finds pills in a parcel at John F. Kennedy Airport’s postal service facility in New York on June 24, 2019. Dozens of law enforcement officers sift through packages, looking for fentanyl. JOHANNES EISELE/AFP VIA GETTY IMAGES

Understanding how to control fentanyl requires understanding how to make it. Fentanyl has many variants with similar sounding names that are chemically distinct but cause similar reactions in the body; the variants are merely different icing on the same cake.

Since its creation in 1959, researchers have developed at least three different manufacturing methods for fentanyl, each relying on different precursor chemicals as part of the process. Criminals have continued to adapt these processes to use a broader set of more readily available precursor chemicals—like using margarine because you’re all out of butter. The potential manufacturing methods are limitless. Criminals seeking to profit from fentanyl and governments seeking to control its supply are locked in a never-ending competition, with each new countermeasure spurring further innovation to circumvent it.

For many years, Chinese regulators attempting to uphold the country’s traditionally strict anti-drug policies faced a challenge as new variants of fentanyl emerged faster than they could be administratively added to the list of controlled substances. Between 2012 and 2015, only six new fentanyl variants emerged, but there were 63 new variants in 2016 alone. In response, the Chinese government placed all variants of fentanyl on the controlled substances list as of May 2019.

free access article from Foreign Policy

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