The People’s Daily reported on 27 June in an article China steadfast in fighting drug-related crimes that China's stance on fighting drug-related crimes, including those connected to fentanyl, remains firm and the country has also strengthened cooperation with progress in the global battle against illegal drugs. Recent law enforcement cases in the US involving arrests and charges against Chinese companies and individuals alleged to have sold fentanyl precursors suggests that the Chinese authorities are not in fact taking the issue of fentanyl trafficking seriously.
On 23 June, the US Department of Justice announced the arrest of two persons and indictments charging China-based companies and their employees with crimes related to fentanyl production, distribution, and sales resulting from precursor chemicals. This is important as these are the first prosecutions of China based companies and people for trafficking Fentanyl precursors and analogues to the US. The charges allege that the defendants knowingly manufactured, marketed, sold, and supplied precursor chemicals for fentanyl production in the US.
To recap the situation, as reported in Fentanyl Precursors from China and the American Opioid Epidemic for the Jamestown Foundation, fentanyl precursors from China were a major source of the supply until 2019 when the PRC government listed most of these as controlled substances, commenced investigations of fentanyl manufacturing, imposed regulations on fentanyl advertising and created special teams to investigate the problem. However, the action by the PRC authorities led to the diversification of fentanyl precursor supply from China to India as well as Mexico. There now seem to be complicated supply chains for fentanyl as well as the precursors used to manufacture the drug, with links to the Sinaloa Cartel in Mexico from Chinese as well as Indian nationals involved in the supply of fentanyl precursors. This is an expansion of transnational organized crime that will be more difficult for the authorities in the U.S. and elsewhere to combat.
The Southern District of New York indictment lays charges against Hubei Amarvel Biotech Co. Ltd., also known as AmarvelBio, as well as its executives and employees Qingzhou Wang (aka Bruce), Yiyi Chen (aka Chiron) and Fnu Lnu (aka Er Yang and Anita Yang), with fentanyl trafficking, precursor chemical importation, and money laundering offenses. Wang and Chen, both nationals of China, were expelled from Fiji on 8 June, arrested by the DEA, and taken before the Honolulu federal court. Both are detained in Honolulu and will appear in Manhattan federal court.
Hubei Amarvel Biotech Co. is listed on Internet chemical supply websites supplying a range of products, shown in the screenshot below.
The above list of chemicals that are seemingly available from Hubei Amarval Biotech Co. Ltd. is indicative of illegality. According to the International Narcotics Control Board, Benzocaine and Lidocaine are cutting agents that can be added directly to cocaine hydrochloride during the crystallization process. Butanediol is a precursor of gamma-Butyrolactone (GBL), which can be used in the illicit manufacture of gamma-hydroxybutyric acid (GHB, otherwise known as a “date rape drug”). 4'-Methylpropiophenone is a Methrodone precursor, an amphetamine also known as ‘White Magic’, ‘meow meow’, and ‘bubble’. Piperidine is a precursor of fentanyl. The DEA reports that Piperidone is a precursor for the manufacture of fentanyl. Methyl-2-methyl-3-phenylglycidate is reported in Australia as a precursor of Ecstasy. Pregabalin is misused in combination with heroin. 4-methylmethcathinone (or mephedrone) is a recreational amphetamine.
The list indicates that Hubei Amarval Biotech Co. Ltd. is an open online supplier of prohibited illegal substances and of controlled substances that are precursors for illegal drugs. It is an online supermarket for drug traffickers.
The website domain of the company has been seized by the US authorities, so no further information is available.
However, a trade website connecting buyers with Chinese suppliers shows Hubei Amarval Biotech Co. Ltd. and an illustrated list of chemicals supplied.
Another trade website shows that Hubei Amarval Biotech Co. Ltd. was established in 2022 and claims that they can ship products globally via FedEx, DHL, EMS, TNT, and UPS.
The openness of the sales by Hubei Amarvel Biotech Co. led to an undercover operation conducted by the DEA. According to the DEA, in the past eight months Amarvel Biotech shipped more than 200 kilograms of precursor chemicals used to make fentanyl and its analogues from China to the US. During the DEA operation, an agent purchased 999.7 grams of the fentanyl precursor 1-boc-4-AP, approximately 1,002.6 grams of the fentanyl precursor 1-boc-4-piperidone, and approximately 893.6 grams of the methamphetamine precursor methylamine, for which payment in cryptocurrency was required.
The Eastern District of New York charges first indictment are against Anhui Rencheng Technology Co. (Rencheng) Ltd., Anhui Moker New Material Technology Co., Shutong Wang, and Shifang Ruan (aka Eva) with conspiracy to manufacture and distribute fentanyl, manufacture of fentanyl, and other related offenses. Also charged are Xinyu Zhao (aka Sarah) and Yue Gao (aka Ellie) with illegally concealing their activities, including through customs fraud and introducing misbranded drugs into the U.S. marketplace. Rencheng, Wang, and Ruan are also charged with conspiracy to distribute butonitazene, a controlled substance.
The second indictment charges Hefei GSK Trade Co. Ltd (aka Hebei Gesuke Trading Co. Ltd.), Hebei Sinaloa Trading Co. Ltd., and Ruiqing Li with conspiracy to manufacture and distribute fentanyl, manufacture of fentanyl, conspiracy to distribute a List I chemical, distribution of a List I chemical, customs fraud conspiracy, introducing misbranded drugs into interstate commerce, and distribution of metonitazene, a controlled substance.
The Hebei Sinaloa Trading Co. Ltd advertises its products via Internet China trade websites, and states that:
Hebei Sinaloa Trading Co., Ltd is located in HEBEI province of China. We specialized in pharmaceutical intermediates, Pesticide intermediates . We have strong professional research and development team, talented personnel and completely equipped laboratory for the quality controlling. We offer OEM service, if you have a good plan in new product production but lack of laboratory device and human resource, we are glad to sovle [sic] this problem for you. “Quality Best, Customer First" is what we adhering all the time, we have enjoyed a high reputation in the world market, mainly North America, Eastern Europe, Western Europe, South America and Southeast Asia. Our business is based on honesty and mutual-trust. Sincerely looking forward to establish long-term and mutual beneficial business relationship with worldwide customers.
The product offering from Hebei Sinaloa Trading Co. Ltd includes “sinaloa-5449-12-7”, which may refer to ‘BMK powder’ which is advertised widely as a fentanyl precursor and is known for many years as a precursor for various amphetamines.
The US Department of Justice cases set an excellent example for law enforcement agencies around the world to illustrate how illegal drug trafficking operated by transnational organised crime groups can be combatted. The recent cases also illustrate how China is an originator for illegal precursor chemicals used in the manufacture of fentanyl as well as other drugs. There is no excuse for the authorities in China to not cooperate in this global fight against illegal drugs.
Following the arrests and the US Department of Justice indictments, the Foreign Ministry of the People’s Republic of China stated that:
US law enforcement personnel ensnared Chinese nationals through “sting operation” in a third country and blatantly pressed charges against Chinese entities and individuals. This is typical arbitrary detention and unilateral sanction, which is completely illegal. It seriously harms the basic human rights of the Chinese nationals and the interests of the Chinese companies concerned. China strongly condemns this move and has lodged serious démarches and strong protest to the US side.
It is difficult, or impossible, to see how this response from the Chinese government can be reconciled with the evidence available on the Internet of companies in China openly selling and shipping precursor chemicals used to manufacture fentanyl and other illegal drugs around the world.
Companies such as the Hebei Sinaloa Trading Co. Ltd are giving China a bad reputation, which the Chinese authorities need to crack down on in collaboration with other law enforcement agencies around the world. If the Chinese authorities do not step up, then it will become clear that the Belt and Road is a global route for the spread of transnational organised crime involving Chinese criminals.