In a significant crackdown on synthetic opioid trafficking, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Guangzhou Tengyue Chemical Co., Ltd., a Chinese chemical manufacturer accused of supplying opioids to the United States. Alongside the company, OFAC has also sanctioned key representatives, Huang Xiaojun and Huang Zhanpeng, for their roles in coordinating the shipment of these dangerous substances.
“Illicit opioids coming from China are destroying American lives, families, and communities,” stated John K. Hurley, the Under Secretary for Terrorism and Financial Intelligence. He emphasized that under the current administration, all possible tools, including sanctions and extensive law enforcement collaboration, will be utilized to combat the opioid epidemic.
The ongoing crisis has seen opioid overdoses become the leading cause of death among Americans aged 18 to 45. Since 2021, synthetic opioids, particularly fentanyl, have been linked to over 70% of drug overdose fatalities in the country. Investigators have identified China-based companies as the primary sources of fentanyl precursor chemicals and other illicit opioids entering the U.S.
This recent action is the result of a collaborative investigation involving the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and its Cincinnati Field Office. The investigation, which began in January 2024, has led to a federal criminal indictment against not only Guangzhou Tengyue and its representatives but also other individuals and entities implicated in a vast drug trafficking network.
The indictment focuses on the trafficking of significant quantities of fentanyl, methamphetamine, and cocaine across the U.S. border. U.S.-based conspirators have reportedly been ordering additional products from China to enhance their drug operations, including nitazenes—synthetic opioids with high addiction potential—and xylazine, an analgesic substance increasingly found in illicit drugs.
Reports indicate that the synthetic opioids known as nitazenes are being trafficked due to their opioid-like effects, with serious risks including respiratory depression and possible fatal overdoses. Meanwhile, xylazine, often referred to as “tranq,” is being used as a cutting agent in these substances, complicating overdose responses since it does not react to traditional overdose-reversal drugs like Narcan.
Despite prior indictments and strong actions against them, Guangzhou Tengyue has continued its operations, openly advertising dangerous chemicals on its website as recently as August 2024. In 2025, the company was reportedly involved in shipments of medetomidine—a potent analgesic similar to xylazine—to U.S. customers.
Huang Zhanpeng serves as the executive director and holds a 50% stake in Guangzhou Tengyue, while Huang Xiaojun has been identified as a key figure in the company’s transactions, including managing a bitcoin account for illicit sales.
The recent sanctions and indictments signify a robust effort by U.S. authorities to curb the flow of dangerous synthetic opioids into the country and hold those responsible accountable for their roles in this growing public health crisis.
