A group of bipartisan lawmakers in the United States Congress reintroduced a bill on Tuesday (August 25) aimed at expanding sanctions against Chinese chemical manufacturers, online retailers, shipping entities, and financial institutions accused of contributing to the fentanyl crisis in the United States.
The legislation, named the “CCP Fentanyl Sanctions Act,” was jointly introduced by Chairman Moolenaar of the House Subcommittee on China, Ranking Democratic Member Khanna, Republican Representative Newhouse, and Democratic Representative Auchincloss. According to the committee, the bill builds upon Executive Order 14059 signed by President Biden in December 2021, with the following added authorizations:
– Imposing sanctions on Chinese vessels and ports identified as knowingly or recklessly assisting in drug trafficking.
– Imposing sanctions on Chinese entities such as online platforms identified as knowingly or recklessly assisting in the sale of synthetic drugs.
– Allowing the President to restrict the correspondent and payable-through accounts of foreign financial institutions that are determined to knowingly facilitate transactions related to synthetic drugs.
Moolenaar mentioned that a report from the committee in April 2024 indicated that certain Chinese companies received export tax rebates, producing and trafficking fentanyl precursor chemicals to drug cartels in Mexico.
Fentanyl’s Impact on the United States
Fentanyl and synthetic opioids have been major contributors to drug overdose deaths in the United States in recent years. According to the latest preliminary statistics from the Centers for Disease Control and Prevention (CDC), drug overdose deaths in the U.S. have decreased from a peak of around 110,000 in 2022 to approximately 80,000 in 2024 (with opioids accounting for about 54,000), and further dropped to around 70,000 in 2025. However, CDC and multiple studies indicate that fentanyl remains one of the leading causes of death among Americans aged 18 to 45; in 2023, deaths involving synthetic opioids (mainly fentanyl) approached nearly 73,000, accounting for over 90% of opioid overdose deaths that year.
The “CCP Fentanyl Sanctions Act” is not a new proposal, as it was initially put forward by the “China Subcommittee” in the “Fentanyl Policy Working Group” in December 2024 but failed to pass in the previous congressional term, leading to its reintroduction now.
As early as April 2024, the subcommittee released a months-long investigative report that highlighted a key finding related to the export tax rebate system: the report noted that as long as fentanyl precursor chemicals were exported outside of China, companies involved could apply for export tax rebates. Investigators believed that this tax arrangement served as an incentive for production and exports. The report also mentioned that despite repeated U.S. requests for assistance in tracking down relevant manufacturers, there were no signs of Beijing initiating corresponding investigations or lawsuits at the time of the report’s release.
Sanctions efforts have also been progressing on fronts outside of China in recent years. In early September last year, the U.S. Treasury and Justice Departments took simultaneous actions: the Treasury Department sanctioned a chemical company named Tengyue in Guangzhou on September 3 for its involvement in the production and sale of fentanyl and other synthetic narcotics; on the same day, the U.S. Justice Department brought criminal charges against the company and related individuals. The day before the sanctions were announced, the House of Representatives passed the “Stop Chinese Fentanyl Act” with nearly unanimous support in a 407-4 vote, expanding the definition of “foreign opioid traffickers” to include Chinese officials and related companies who fail to act to curb fentanyl trade.