US Sanctions Chinese Drug Production, Distribution Network

The U.S. this week sanctioned a China-based network of companies and people involved in manufacturing and distributing “ton quantities” of fentanyl, methamphetamine and MDMA precursors. The designations also target two entities and one person based in Canada.

The network helps facilitate the global trafficking of xylazine and nitazenes, which the Treasury Department said are “highly potent and often mixed with illicit fentanyl or other drugs.” Along with the sanctions, DOJ announced indictments against some of the Chinese companies and their employees for crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids and more. The agency said the companies helped ship fentanyl precursors, fentanyl analogues, xylazine and nitazenes into the U.S. and Mexico.

Among the companies designated was China-based Hanhong Pharmaceutical Technology Co., which advertised the sale of fentanyl precursors to Mexican customers, along with owner Du Changgen and sales representatives Gan Xuebi, Song Xueqin and Yang Qi. The Office of Foreign Assets Control also sanctioned Hebei Guanlang Biotechnology Co., Hebei Crovell Biotech Co., Qingdao Cemo Technology Develop Co., Hebei Yaxin Restaurant Management Co., Jinhu Minsheng Pharmaceutical Machinery Co., Jiangsu Bangdeya New Material Technology Co., Xingtai Dong Chuang New Material Technology Co., Hebei Xiuna Trading Co., Shanghai Jarred Industrial Co., Hubei Vast Chemical Co. and other employees and officials involved in the trafficking network.

OFAC sanctioned Canada-based Valerian Labs, Inc., a “major customer” of Jinhu Minsheng, and Canada-based Valerian Labs Distribution Corp., which shares an address with Valerian Labs. The agency also designated Canadian national Bahman Djebelibak, who owns or controls the entities.