China May Help the US Tackle the Fentanyl Crisis to Strengthen Trade Negotiations
Reports from the WSJ indicate that China is contemplating offering help to combat the fentanyl trade in North America, seeing it as a possible avenue to restart trade negotiations with the U.S. The opioid crisis contributes to tens of thousands of overdose fatalities annually in both the U.S. and Canada, with China significantly influencing the North American fentanyl market.
Unnamed sources cited by The Wall Street Journal suggest that China may propose collaboration on the fentanyl crisis to alleviate tensions and foster dialogue with the Trump administration. Given China’s substantial role in this matter, it has the means to tackle the North American fentanyl issue. It’s been noted that Chinese chemical companies export fentanyl precursors and consult with individuals in the U.S. interested in synthesizing the drug online.
China appears to be pursuing communication, especially since Donald Trump specifically highlighted the fentanyl issue when justifying the imposition of stringent tariffs on China, the only nation not given a 90-day tariff reprieve. Dialogues between the U.S. and China are feasible; recently, Trump stated that it is “a natural thing to ask” regarding the possibility of seeking China’s aid in mediating conflicts between Russia and Ukraine.
Fentanyl Crisis Statistics
Fentanyl, a synthetic opioid used as an anesthetic, is significantly more potent than heroin or morphine. The recreational use of fentanyl increased dramatically in North America during the 2010s, resulting in hundreds of overdose deaths daily. In 2022, fatal overdoses from synthetic opioids, primarily fentanyl, reached approximately 80,000 in the U.S. alone.
In Canada, while the population is five times smaller, the figures are still concerning, with about 6,000 fentanyl-related deaths recorded in 2023. However, when looking at deaths per 100,000 individuals, Canada’s rates are alarmingly close to those of the U.S.
The majority of overdose victims are men under 45, although an increasing number of older adults are also affected. The crisis touches all demographics, including young children.
To comprehend the scale of this tragedy, consider that, at its peak, fentanyl claimed one life every hour in Canada and one every seven minutes in the U.S.
Despite a decline in fentanyl-related deaths in both countries after 2022, the epidemic remains critical. The Council on Foreign Relations notes that the 2022 death toll from fentanyl was ten times higher than the total casualties suffered by the U.S. military in Iraq and Afghanistan combined. Comparing these fatalities to military conflicts isn’t unfounded, as the number of deaths due to fentanyl rivals those from severe military clashes in the 2020s in regions such as Sudan, Gaza, Yemen, and Ukraine.
Notably, North America has encountered war-scale casualties without being engaged in a conventional military conflict—aside from the trade war. The two nations most affected by the strictest tariffs, China and Mexico, are also crucial players in the fentanyl trade in the U.S. Canada, which also faces significant tariffs, has contributed to the issue, particularly through Valerian Labs supplying fentanyl.
Fentanyl Trade: China, Mexico, and Cryptocurrency
In 2022, the Drug Enforcement Administration identified China as the primary origin of fentanyl-related deaths among Americans. The drug generally makes its way to North America from China via mail or through Mexico. A Congressional committee later suggested that China is subsidizing the production of fentanyl precursors that transform into illicit drugs in North America. The report states:
“The PRC (People’s Republic of China) classified all fentanyl analogues as controlled substances in 2019, suggesting that it currently subsidizes the export of drugs that are illegal under both U.S. and PRC law. [Some of the substances] have no recognized legal use anywhere in the world.”
Chinese authorities deny any misconduct, maintaining that they work with U.S. enforcement to combat trafficking.
Meanwhile, cryptocurrency has a dual function in this context. A Chainalysis report from February 2025 highlighted how digital currencies both facilitate and expose aspects of the fentanyl trade. On darknet markets, fentanyl and its precursors are commonly traded using Bitcoin or Monero.
Chainalysis noted that some participants do not fully anonymize their transactions, enabling analysts to trace trafficking networks more effectively. While cryptocurrencies aid in remote drug purchases and laundering, they also provide a level of transparency that cash transactions lack.
“While the cartel may have benefitted from speed, low transaction costs, and efficient cross-border transactions, their reliance on the blockchain has made it easier for investigators to trace these transactions compared to traditional cash-based money laundering. Additionally, it presents greater disruptive potential since issuers and centralized services often have the capability to freeze assets as needed.”
This highlights a less apparent way in which cryptocurrency supports drug trafficking while simultaneously causing disruptions in illegal substance markets.
Conclusion
It remains unclear whether China is genuinely inclined or capable of dismantling its extensive fentanyl supply chain. Nonetheless, it presents a potent leverage point as trade discussions with the Trump administration draw near. In 2019, Assistant U.S. Attorney Matt Cronin stated bluntly: “It is a fact that if the People’s Republic of China wanted to shut down the synthetic opioid industry, they could do so in a day.”