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Chinese Communist Party gives funding and tax rebates to fentanyl producers

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A 64-page report released Tuesday by the House Committee on the Chinese Communist Party (CCP) states China has been subsidizing the manufacturing and exporting of illicit fentanyl precursor chemicals and other synthetic narcotics through tax rebates and other means.

“Many of these substances are illegal under the PRC’s own laws and have no known legal use worldwide,” the 64-page report states. “Like its export tax rebates for legitimate goods, the CCP’s subsidizing of illegal drugs incentivizes international synthetic drug sales from the PRC. The CCP has never disclosed this program.”

The bipartisan investigation was led by Chairman Mike Gallagher (R., Wis.) and Ranking Member Raja Krishnamoorthi (D., Ill.). Additional details were uncovered as to the extent of China’s role in the U.S. fentanyl epidemic, including that the CCP-run government gives monetary grants and awards to companies that illegally traffic fentanyl and other drugs.

National Review summarizes the report which also found that the CCP holds ownership interest in several Chinese companies tied to drug trafficking, impedes U.S.-led investigations into manufacturers producing fentanyl and precursors, allows the open sale of drugs on the Chinese internet, and fails to censor online content on narcotics set to be exported. Notably, the Chinese government censors content about domestic drug sales but not exported ones.

“These actions and omissions are abhorrent, violate the laws of nations, and have led to profound human suffering in the United States and around the world,” the report reads. “They also, as a factual matter, further the PRC’s strategic and economic interests.”

In his prepared opening remarks Tuesday morning, former U.S. attorney general Bill Barr called the months-long investigation and subsequent report “groundbreaking” as he testified before the congressional panel. “The Committee’s work has uncovered persuasive evidence that the PRC and CCP are not just bystanders; they are the prime movers,” Barr said. “They are knee deep in actively sponsoring, encouraging, and facilitating the production and export of fentanyl and fentanyl precursors for distribution in the United States.”

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China

New documents show China trying to establish ‘satellite state’ in Caribbean

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China has been “exploiting a fragile security environment and taking advantage of the region’s need for economic investment to gain influence and advance its malign agenda” in a move that challenges U.S. hegemony in the Americas, U.S. Southern Command Comm. General Laura Richardson recently told Congress in written testimony.

The Caribbean island nation of Antigua and Barbuda, located about 220 miles from the U.S. Virgin Islands, is where China is planning to establish a special Chinese-run economic zone, according to documents reviewed by Newsweek

Just The News  reports that per the documents, the area will have its own customs and immigration facilities, a shipping port and it will even issue passports. China will also establish different kinds of businesses that will specialize in things from facial surgery to virology, the latter of which is closely associated with the research in Wuhan that is the suspected source of the COVID-19 pandemic.

A spokesperson for SOUTHCOM said that the U.S. military is “aware that China may use its commercial and diplomatic presence for military purposes. In Asia, Africa and the Middle East, China has already abused commercial agreements at host-country ports for military aims; our concern is they may do the same in this region.”

More than two-thirds of the 31 nations under SOUTHCOM’s responsibility have signed onto China’s belt-and-road initiative, which is Beijing’s program to lend money to developing nations to use for infrastructure projects, according to Just The News.

Several nations have had problems with repaying such loans, resulting in Beijing seizing the country’s assets. For example, Sri Lanka struggled to pay back Beijing in 2017 and instead signed off the rights to a strategic port, according to Foreign Policy.

Rep. Eric Burlison, R-Mo., a member of the House Oversight Committee proving China’s incursion inside the U.S. sphere of influence, told Just the News on Monday night that Beijing’s aggression in the Caribbean reminded him of the Soviet’s intervention in Fidel Castro’s Cuba more than a half century earlier.

“It reminds me of Russia’s involvement in Cuba, just 220 miles off the shore of the US Virgin Islands. We have Antigua. It used to be considered the United States back yard. Unfortunately, today, it’s China’s front yard,” Burlison told the “Just the News, No Noise television show. “And China has used the united front to enter into loan agreements and contracts to create trade zones within Antigua in order to gain a foothold into the Caribbean.”

“And this is just part of their efforts around the globe, whether it’s in African countries or Laos. They’re they’re creating a network to try to undermine the U.S. dollar and try to end run around some of our tariffs and other programs,” he warned.

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