The U.S. government has intensified its fight against synthetic opioid trafficking by sanctioning a China-based chemical company accused of fueling America’s fentanyl crisis. Treasury officials say the move is part of a broader crackdown on foreign suppliers contributing to overdose deaths across the United States.
Washington’s Latest Action Against Synthetic Opioids
In Washington, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against Guangzhou Tengyue Chemical Co., Ltd., along with its representatives Huang Xiaojun and Huang Zhanpeng. These sanctions were issued on September 3, 2025, following investigations with the DEA and FBI.
Introduction
The sanctions target Guangzhou Tengyue for manufacturing and distributing synthetic opioids, including nitazenes and xylazine.
These substances, often sold to U.S. buyers and used as cutting agents, pose a growing threat to public health. Officials emphasize that curbing Chinese chemical suppliers is vital to slowing America’s spiraling opioid epidemic.
The Opioid Crisis in Numbers
Opioid overdose is now the leading cause of death among Americans aged 18 to 45. According to federal data, synthetic opioids such as fentanyl are involved in more than 70 percent of overdose deaths since 2021.
Analysts say the availability of precursor chemicals from China continues to drive the epidemic’s deadly reach.
Spotlight on Guangzhou Tengyue Chemical
Guangzhou Tengyue’s activities included selling protonitazene, a powerful nitazene compound, to U.S. buyers while assuring them shipments would clear customs.
Despite a previous indictment in October 2024, the company continued operations, advertising products like xylazine and medetomidine online as recently as August 2024.
“Illicit opioids coming from China are destroying American lives, families, and communities,” said John K. Hurley, Under Secretary for Terrorism and Financial Intelligence.
Company Leadership
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Huang Zhanpeng: Executive director, 50% shareholder, and listed legal representative.
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Huang Xiaojun: Formerly indicted, also tied to a bitcoin account used for illicit transactions.
Sanctions and Indictments
Alongside sanctions, the FBI announced federal indictments against Guangzhou Tengyue and 25 related individuals and businesses. These charges include Conspiracy to Commit Drug Trafficking under Title 21 U.S. Code 846.
The network was linked to trafficking fentanyl, adulterants, methamphetamine, and cocaine into the U.S. Investigators found that U.S. co-conspirators ordered cutting agents such as tranq (xylazine), nitazenes, and medetomidine to extend drug yields and maximize profit.
Breakdown of Sanctioned Entities and Actions
| Entity/Individual | Action Taken | Alleged Role/Activity |
|---|---|---|
| Guangzhou Tengyue Chemical Co. | Sanctioned | Manufacturer and seller of synthetic opioids |
| Huang Xiaojun | Sanctioned | Coordinated shipments, bitcoin account holder |
| Huang Zhanpeng | Sanctioned | Executive director, shareholder, legal representative |
| 22 China-based firms & 3 U.S. individuals | Indicted | Linked to trafficking fentanyl, nitazenes, and tranq |
Dangerous Drug Mix: Tranq and Nitazenes
U.S. agencies warn that nitazenes and tranq pose unique dangers. Nitazenes are highly addictive synthetic opioids, while tranq does not respond to overdose reversal medication like Narcan. These substances heighten the risk of fatal overdoses when combined with fentanyl.
Wider Sanctions Implications
Sanctions block all property and interests of the named entities within U.S. jurisdiction. They also restrict financial institutions and businesses from transacting with designated individuals. Violations may lead to severe civil or criminal penalties, underscoring Washington’s hard line against traffickers.
Enforcement Goals
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Cut off financial networks sustaining synthetic opioid trafficking.
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Pressure foreign chemical companies to halt illicit exports.
In a Nutshell
U.S. officials stress that sanctions are not just punitive but aim to force behavioral change among foreign suppliers.
By targeting Guangzhou Tengyue, Washington signals it will continue to expand enforcement efforts against overseas actors feeding the fentanyl crisis.
Sources: U.S. Department of the Treasury.
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources. Combines AI-analyzed research with human-edited accuracy and context.
