US government departments have launched a crackdown on a group of Chinese companies as part of Washington's wider 'war on fentanyl'.
The US Treasury and Department of Justice said they have respectively put sanctions on over 20 individuals and imposed indictments and sanctions against eight China-based companies and at least a dozen executives, adding to other sanctions against the People's Republic in the tech sector.
Federal charges have been filed, and banking restrictions have been applied to entities and individuals for the alleged manufacture and supply of methamphetamines, fentanyl, and other opioids.
“The global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said US attorney-general Merrick Garland.
“The US government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
Many in Washington believe Mexican cartels control fentanyl trafficking into the US, but that Chinese sources supply the source chemicals.
The Treasury emphasized the Biden administration's commitment to countering the global drug trade threat, while US Drug Enforcement Administration chief Anne Milgram noted that fentanyl has become the leading cause of death among Americans aged 18 to 45, saying nearly all raw ingredients originate from China.
The sanctions further strain US-China relations, with the countries also locked in fierce competition over the global microchip industry and Washington accusing its rival of stealing intellectual property, forcing technology transfer, and subsidizing its domestic chip-makers to gain an unfair advantage.
The US has imposed export restrictions on advanced chips and chip-making equipment to Chinese companies, such as Huawei and SMIC, citing national security concerns.
China has retaliated by challenging the US measures at the World Trade Organization, calling them "trade protectionism", and has ramped up its efforts to develop its own chip capabilities and reduce its reliance on foreign suppliers.