The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced on September 3 that it has imposed sanctions on Guangzhou Tengyue Chemical Co., Ltd., a Chinese company, and two individuals, Huang Xiaojun and Huang Zhanpeng. The reason for the sanctions is the company’s involvement in shipping synthetic opioid drugs to the United States.
Deputy Treasury Secretary John K. Hurley stated that illegal drugs flowing in from China are taking American lives, destroying families, and communities. Under President Trump’s leadership, the U.S. will use all tools, including sanctions and legal actions, to address this drug crisis.
Data indicates that opioid overdoses continue to be a leading cause of death among the 18 to 45 age group in the U.S. Since 2021, over 70% of overdose deaths involved synthetic opioids, with fentanyl being the primary source. Investigations have found that Chinese chemical companies remain major exporters of fentanyl precursors and other illegal opioid drugs.
OFAC conducted the investigation with assistance from the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI). The FBI also announced federal lawsuits against Guangzhou Tengyue, Huang Xiaojun, Huang Zhanpeng, as well as other individuals and companies, on charges including drug trafficking. The indictments involve around 22 individuals and companies in China and 3 conspirators in the U.S. The investigation revealed a network smuggling fentanyl, methamphetamine, cocaine, and other drugs into the United States.
The National Institute on Drug Abuse points out that illegal drugs are often laced with particularly dangerous chemicals like nitazenes and the sedative xylazine. Xylazine is especially perilous, as the commonly used antidote naloxone has no effect on it, greatly increasing the risk of fatal overdoses.
Despite this, Guangzhou Tengyue continues to market through its website, even guaranteeing smooth customs clearance. Earlier in 2025, the company representatives assisted in exporting the sedative medetomidine to the United States.
Under Executive Order 14059, Guangzhou Tengyue and its two senior executives have been placed on the Specially Designated Nationals (SDN) list. All their assets and properties in the U.S. will be frozen, and American citizens and businesses are prohibited from engaging in transactions with them. Violators may face criminal or civil penalties.
Meanwhile, the U.S. Congress is also advancing legislation. The House of Representatives passed the Stop Chinese Fentanyl Act on September 2 with 407 votes in favor and 4 against. The bill authorizes the U.S. government to impose tougher sanctions on Chinese individuals and entities involved in the production and shipment of fentanyl.
Republican lawmaker Andy Barr, who introduced the bill, emphasized that the Chinese Communist Party plays a crucial role in the fentanyl supply chain, and the U.S. must cut off the drug source. North Carolina Representative Greg Murphy warned that fentanyl manufactured in China and trafficked through Mexico is exacerbating the U.S. drug crisis.