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The Treasury Department sanctioned a Chinese chemical company for its role in the U.S. opioid epidemic.

The Department imposed sanctions on Guangzhou Tengyue Chemical Co., Ltd., a chemical manufacturer that sells synthetic opioids and other precursor chemicals used in the manufacture of narcotics. The FBI also unsealed an indictment against the company and others in connection with a drug trafficking operation in Ohio.

“Illicit opioids coming from China are destroying American lives, families, and communities,” Treasury Department Under Secretary for Terrorism and Financial Intelligence John K. Hurley said in a <a href="https://home.treasury.gov/news/press-releases/sb0235">statement</a>. “Under President Trump’s leadership, we will use all of the tools at our disposal—including sanctions and prosecutions by our law enforcement partners—to stop this epidemic.”

According to the press release, Guangzhou Tengyue and its representatives have on multiple occasions sold precursor chemicals to customers in the United States. These chemicals include: <a href="https://www.deadiversion.usdoj.gov/drug_chem_info/benzimidazole-opioids.pdf">nitazenes</a>, a group of synthetic chemicals illegal in the United States that produce a psychoactive effect similar to opioids but can also cause respiratory depression and arrest, which can be fatal; and <a href="https://www.fda.gov/drugs/drug-safety-and-availability/fda-alerts-health-care-professionals-risks-patients-exposed-xylazine-illicit-drugs">xylazine</a>, street name "tranq," a sedative approved for veterinary use that is used to adulterate or "cut" synthetic opioids. Xylazine is particularly notable because it does not react to naloxone (Narcan), the medicine used to reverse the effects of opioid overdose, which in turn increases the risk of a fatal overdose.

In August 2023, the company sold a kilogram of the chemical protonitazene to a buyer in the United States, with assurances that the package would clear customs. Earlier this year, the company also facilitated the sale and shipment of another chemical similar to xylazine called metomidine into the United States. The company also advertised nitazenes and xylazine on its website as recently as August 2024.

The Treasury Department imposed sanctions on Guangzhou Tengyue, as well as an individual named Huang Xiaojun—who owns a bitcoin account used by the company in the 2023 transaction—under sanctions pursuant to Executive Order 14059, for "having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production." Huang and the company were both previously <a href="https://www.justice.gov/archives/opa/pr/china-based-chemical-manufacturing-companies-and-employees-indicted-alleged-fentanyl">indicted in 2024</a>, along with seven other companies and individuals, for distributing synthetic opioids and precursor chemicals into the United States.

The Department is also sanctioning the company's executive director, majority shareholder, and listed legal representative, Huang Zhanpeng, under the same order for "having provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of, Guangzhou Tengyue Chemical Co., Ltd."

Also on Wednesday, the FBI unsealed criminal indictments against four Chinese chemical manufacturers, 22 Chinese nationals, and 3 Americans, in connection with a fentanyl trafficking ring in the Southern District of Ohio.

"It is the first of its kind in terms of how we actually get after the threat that is Chinese precursors, which are used to make fentanyl, which is used to kill tens of thousands of Americans a year," FBI Director Kash Patel said at a <a href="https://www.youtube.com/watch?v=X6nsGSrnTtg">press conference</a> announcing the indictments. "We're done playing whack-a-mole ... if you want to end the pandemic of [narcotics], you have to go after where it's made, how it's made, and what goes into making it."

Drug overdose is the <a href="https://www.cdc.gov/media/releases/2025/2025-cdc-reports-decline-in-us-drug-overdose-deaths.html">leading cause of death</a> among Americans aged 18-45. According to data from the <a href="https://www.cdc.gov/nchs/nvss/vsrr/drug-overdose-data.htm">Centers for Disease Control and Prevention</a>, 74,972 deaths from drug overdoses occurred in the 12-month period ending March 2025. That is a significant decline from the all-time high of 111,466 deaths recorded in June 2023.

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