by Sebastian Rotella

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China’s vast security apparatus shrouds itself in shadows, but the outside world has caught periodic glimpses of it behind the faded gray walls of Shijiazhuang prison in the northern province of Hebei.

Chinese media reports have shown inmates hunched over sewing machines in a garment workshop in the sprawling facility. Business leaders and Chinese Communist Party dignitaries have praised the penitentiary for exemplifying President Xi Jinping’s views on the rule of law.

But the prison has an alarming secret, U.S. congressional investigators disclosed last year. They revealed evidence showing that it is a Chinese government outpost in the trafficking pipeline that inundates the United States with fentanyl.

For at least eight years, the prison owned a chemical company called Yafeng, the hub of a group of Chinese firms and websites that sold fentanyl products to Americans, according to the U.S. congressional investigation, as well as Chinese government and corporate records obtained by ProPublica. The company’s English-language websites brazenly offered U.S. customers dangerous drugs that are illegal in both nations. Promising to smuggle illicit chemicals past U.S. and Mexican border defenses, Yafeng boasted to American clients that “100% of our shipments will clear customs.”

Although China tightly restricts the domestic manufacturing, sale and use of fentanyl products, the nation has been the world’s leading producer of fentanyl that enters the United States and remains the leading producer of chemical precursors with which Mexican cartels make the drug. Overdoses on synthetic opioid drugs, most of them fentanyl related, have killed over 450,000 Americans during the past decade — more than the U.S. deaths in the Vietnam, Iraq and Afghanistan wars combined.

The involvement of a state-run prison is just one sign of the Chinese government’s role in fomenting the U.S. fentanyl crisis, U.S. investigators say. Chinese leaders have insistently denied such allegations. But U.S. national security officials said the Yafeng case shows how China allows its chemical industry to engage openly in sales to overseas customers while blocking online domestic access and enforcing stern laws against drug dealing inside the country. Beijing also encourages the manufacture and export of fentanyl products, including drugs outlawed in China, with generous financial incentives, according to a bipartisan inquiry last year by the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party.

“So the Chinese government pays you to send drugs to America but executes you for selling them in China,” Matt Cronin, a former federal prosecutor who led the House inquiry, said in an interview. “It’s impossible that the Chinese Communist Party doesn’t know what’s going on and can’t do anything about it.”

China’s antidrug cooperation has been persistently poor, U.S. officials said. In 2019, Xi imposed controls that cut the export of fentanyl, but Chinese sellers shifted to shipping precursors to Mexico, where the cartels expanded their production.

“We couldn’t get the Chinese on the phone to talk about fighting child pornography, let alone fentanyl,’’ said Jacob Braun, who served as a senior official at the Department of Homeland Security during the Biden administration. “There was zero cooperation.”

China also remains the base of global organized crime groups that launder billions for fentanyl traffickers in the U.S, Mexico and Canada. ProPublica has previously reported that this underground banking system depends on the Chinese elite, who move fortunes abroad by acquiring drug cash from Chinese criminal brokers for Mexican cartels. Chinese banks and businesses also help hide the origin of illicit proceeds. The regime in Beijing therefore has considerable control over key nodes in the fentanyl chain: raw materials, production, sales and money laundering.

U.S. leaders, Democrats and Republicans alike, have accused China of using fentanyl to weaken the United States. Some veteran agents agree.

Ray Donovan, who retired in 2023 as the Drug Enforcement Administration’s chief of operations, said he believes that a “deliberate strategy” by the Chinese state has caused the trafficking onslaught “to grow in size and scope.”

“They have said for years that they are cracking down,” Donovan said in an interview. “But we haven’t seen meaningful action.”

Still, current and former U.S. officials told ProPublica that the national security community has not found conclusive evidence of a planned, high-level campaign against Americans by the Chinese government. That is partly because for years the U.S. treated fentanyl as a law enforcement matter rather than a national security threat, making it hard to gather intelligence about the extent and nature of the regime’s role.

“If this was Chinese intelligence doing something, we have a focus on that as counterintelligence,” said Alan Kohler, who retired from the FBI in 2023 after serving as director of the counterintelligence division. “If it was drug cartels, we have a criminal focus on that. But this area of crime and state converging falls between the seams in and among agencies.”

Nonetheless, the current and former officials said rampant fentanyl trafficking could not continue without at least the passive complicity of the world’s most powerful police state.

“I haven’t seen smoking-gun evidence that it’s a policy or strategy of the government at a high level,” Kohler said. “You could argue that their decision not to do anything about it, even after the results are clear, is tacit support.”

In a written statement, the spokesperson for China’s embassy in Washington described as “totally groundless” any allegation........

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