How China Quietly Fuelled the Fentanyl Crisis and Why India Is Picking Up the Pieces

India’s legitimate pharmaceutical sector is massive and globally integrated; lax regulation in certain chemicals, especially for drug manufacture, creates exploitative opportunities.

In the shadow of diplomatic tensions and economic brinkmanship, the dangerous flow of fentanyl has reshaped transnational criminal networks. New U.S. intelligence and investigative reporting reveal a shifting landscape—one that began in China under the tacit aegis of the CCP and is now tiptoeing toward India.

For over a decade, China’s vast chemical and pharmaceutical industry served as the primary wellspring of fentanyl precursors and pill‑pressing equipment. As the U.S. Director of National Intelligence’s 2025 Annual Threat Assessment notes, “China remains the primary source country for illicit fentanyl precursor chemicals and pill pressing equipment, followed by India.”

But the deep entanglement of state-sanctioned industry and criminal enterprise goes beyond mere oversight. A 2023 U.S. Congress report revealed Chinese export incentives, including subsidies, tax rebates, and provincial promotion of businesses tied to illicit chemical trade, in some cases with no legitimate industrial use. Major Chinese firms active in fentanyl precursor production—like Hanhong Pharmaceutical Technology—have since been indicted by U.S. authorities for supplying Mexican drug cartels and laundering money through cryptocurrency.

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