Recently, the Special Committee on China Issues in the U.S. House of Representatives raised questions regarding the Chinese government providing a 13% tax subsidy for certain export products, specifically the precursor to illegal fentanyl, 1-(1-naphthyl)-1-pentyl-3-indole. This inquiry was based on a screenshot from the official website of the Chinese State Administration of Taxation regarding export tax refund rates.
The screenshot revealed that the product under code “2933990055” corresponded to a 13% value-added tax refund rate, indicating that exporters of such products could receive tax subsidies from the Chinese authorities. China has been implementing export tax rebate policies for certain products to secure orders in international markets by offering them at competitive prices.
It is apparent that the Chinese government openly providing subsidies to enterprises engaged in the illegal sale of synthetic drugs is a startling revelation. In other words, the Chinese authorities are supporting the influx of illegal drugs, including fentanyl, into the U.S. market.
Fentanyl, a synthetic opioid drug, is 50 times more potent than heroin, compact in size, easily transportable, and can be adulterated. The U.S. has attributed the synthetic opioids manufactured in China to the most severe drug crisis in its history, causing tens of thousands of deaths annually. According to data from the U.S. Centers for Disease Control and Prevention, from May 2022 to April 2023, over 77,000 individuals died due to overdosing on fentanyl and other synthetic opioids.
Last year, Tyrone Durham, Director of the National Threat Center under the U.S. Department of Homeland Security, stated that China is an ideal environment for drug trafficking, possessing large-scale, loosely regulated chemical manufacturing infrastructure and porous borders. He highlighted that “China is the source of most precursor chemicals required for fentanyl production.” Criminal elements in China easily produce chemicals, smuggle them out, mix them with legal products, and then transfer them to Mexican drug trafficking organizations or other drug trafficking networks.
According to data from the United Nations Office on Drugs and Crime, China is home to 40,000 to 100,000 pharmaceutical companies. The European Union’s law enforcement agency has also identified China as the world’s largest producer and seller of laboratory-synthesized drugs.
Despite these accusations, the Chinese government has consistently denied them, making superficial gestures to cooperate with the U.S., but in reality, acting in bad faith. For instance, as part of trade negotiations with the then-President Trump in 2019, the Chinese government agreed to ban the production, sale, and export of all fentanyl-related drugs unless with special permission. This led to a significant decrease in direct exports of fentanyl from China. However, Chinese companies then redirected their exports to Mexico, selling fentanyl precursor chemicals to Mexican drug trafficking organizations.
In retaliation for House Speaker Pelosi’s visit to Taiwan in August 2022, China suspended all anti-drug cooperation with the U.S.
In November 2023, a crucial agreement was reached between Biden and Xi Jinping to curb the influx of fentanyl into the U.S., with Biden emphasizing the need to verify Beijing’s compliance.
In January 2024, a joint action was launched between China and the U.S. to curb fentanyl production. During the Munich Security Conference in February, Chinese State Councilor and Minister of Public Security Wang Xiaohong met with U.S. Secretary of Homeland Security Marc Mayorkas. The core issue for the U.S. in this meeting was to advance cooperation with China in combating the significant harm caused by fentanyl and its precursor chemicals and related equipment.
However, from official Chinese reports, it can be seen that Wang Xiaohong has used this as leverage, implying that the U.S. must respect China’s core interests and major concerns, such as lifting restrictions on specific Chinese visas, for China to truly cooperate in combating fentanyl. The U.S. is evidently unwilling to make such concessions.
The latest questioning by the Special Committee on China Issues in the U.S. clearly indicates that while China superficially agrees to cooperate with the U.S. in combating drugs, it is still promoting the export of fentanyl precursor products. It is imperative for both the U.S. government and public to recognize that China, viewing the U.S. as an adversary at its core, is not only seeking substantial profits but also harming American youth physically by flooding the market with fentanyl, jeopardizing America’s future as the primary victims of drug abuse are the youth.
Currently, some American politicians and anti-drug organizations have started urging for a deeper investigation into China’s export policies to ensure that no form of economic incentives exacerbates illicit drug trafficking. The U.S. undoubtedly needs a stronger response in this regard.
If China is physically harming American youth through fentanyl, it is simultaneously attempting to influence them mentally through TikTok. In the U.S., TikTok’s primary user base consists of Millennials and Generation Z. The latest data for 2024 reveals that there are as many as 150 million active TikTok users in the U.S.
Following a Hamas terror attack in Israel on October 7, 2023, the Harvard Kennedy School Center for American Political Studies, Harris Poll, and HarrisX conducted an online survey of 2,116 registered U.S. voters, showing that 51% of young Americans aged 18-24 and 48% of those aged 24-34 believed that Hamas targeting Israeli citizens with terrorist attacks was justified.
Upon seeing this survey’s results, Chairman Gallagher of the Special Committee on China Issues in the U.S. expressed being “extremely shocked” and questioned, “Why do the majority of American youth have such moral decay? Why do American youth support terrorists kidnapping American citizens, particularly against a key ally of the U.S.? Where are they getting this distorted news from?”
He pointed out that these survey results reflect the influence of TikTok in the U.S. Currently, 69.7% of Americans aged 12-17, 76.2% of those aged 18-24, and 54% of those aged 25-34 are using TikTok. By adjusting TikTok’s algorithms, China can censor information and influence Americans at various age groups on various issues, reshaping facts and conclusions.
It is widely known that TikTok’s parent company, along with Douyin, is controlled by the same entity, ByteDance, which is influenced by the Chinese Communist Party, producing content aligning with the CCP’s viewpoints. That is why a $95 billion comprehensive legislative plan, including the separation or banning of TikTok, was approved by the U.S. House on April 20.
Once TikTok is separated or banned, it will not only reduce the risk of American privacy breaches by China, curb Chinese interference in U.S. elections but also decrease the impact of Chinese influence on American youth.
In addition to physically and mentally harming some American youth, China has targeted America’s future elite by inviting them to China for brainwashing purposes.
In January this year, Chinese leader Xi Jinping emphasized in a letter to Sarah Landy, an Iowa friend from the U.S., that “the future of U.S.-China relations lies with the youth.” Hence, he announced inviting 50,000 American youth to China for exchanges and learning over the next five years. By the end of March, 24 students from Lincoln Middle School and Strathcona Middle School in Washington had completed their visits to Beijing, Hubei Shiyan, Guangzhou, and Shenzhen as part of this youth exchange program organized by the Chinese side.
Under the enthusiastic reception of the Chinese government, these American high school students encountered a “different China and Chinese culture,” influenced by China’s evil version of “Party culture” to obscure perceptions and fish in troubled waters. How many of these American students will succumb to the brainwashing by the CCP? Will they continue to confuse “CCP” with “China,” and “Chinese traditional culture” with “Party culture”? This is something that cannot be ignored by the U.S. government and public.
China’s malicious strategies towards American youth are now clear, aiming to disrupt American society, sow division, and undermine America’s future. Although the U.S. government has implemented various measures to counter China, more robust actions are necessary in this regard.