A new report issued April 13 by the House Select Committee on the Chinese Communist Party (CCP) finds persuasive evidence that China has been subsidizing the manufacturing and exporting of illicit fentanyl precursor chemicals and other synthetic narcotics through tax rebates and other means.

Reacting to the report, GAI President Peter Schweizer said, “This report is an important first step in our government’s acknowledging what China is doing to America’s young people. But it’s only a first step. China’s involvement in the fentanyl trade goes much deeper than tax breaks for the producers of the precursors. China is involved at every step of the deathly fentanyl chain.”

This tracks with revelations in GAI’s latest book, Blood Money: Why the Powerful Turn a Blind Eye While China Kills Americans, written by GAI president Peter Schweizer. The book documented how the CCP provides not just the precursor chemicals, but also the pill presses to manufacture counterfeit medications that are laced with fentanyl. The CCP has placed Chinese nationals in Mexico to help manufacture the drug, provides the Mexican cartels money-laundering services through Chinese state-owned banks, and even facilitates secure communications for the Mexican smugglers.

“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.”

Read more at National Review.