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Trade Policy & Compliance

【China】China's Fentanyl Supply Chain: Licensed Pharma vs. Chemical Intermediates

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Editor's note

This analysis underscores a critical sourcing signal for overseas buyers: the regulatory gap between licensed pharma and unlicensed chemical intermediates. The supply-chain risk lies in smaller private firms, not state-controlled entities. Buyers must scrutinize supplier compliance to avoid inadvertent involvement in illicit precursor flows.

China's tightly regulated fentanyl pharmaceutical supply chain, controlled by five licensed manufacturers and three state wholesalers, is unlikely to be the source of illicit fentanyl reaching the United States. Instead, small private chemical companies producing intermediates and APIs, operating under lower regulatory barriers, are the probable suppliers of precursors used by Mexican cartels. This distinction is critical for overseas buyers assessing compliance risks in China's chemical sourcing.

Source: Read the original report | Published: August 08, 2024