In a recent interview, federal prosecutors highlighted a significant case involving fentanyl and xylazine trafficking. The U.S. Attorney’s Office filed a criminal complaint in Los Angeles federal court in September 2024, revealing that its efforts to curb the trafficking of these addictive substances are now extending internationally. The defendants in this case include Hubei Aoks Bio-Tech, a biotechnology firm based in Hubei, China, along with four of its executives.
Despite the indictment, reactions in China have been less impactful than anticipated. Although the company is being prosecuted in the United States, all four executives remain in China and have not been arrested. In fact, the government of Qingshan District in Hubei had already approved the company’s application to revoke its “Hazardous Chemicals Business License” on November 27, 2023. The exact nature of these so-called hazardous chemicals remains unknown.
Federal agents have suggested that there’s some willingness for cooperation from the Chinese government, recognizing that fentanyl poses a risk to its own citizens. “The higher-ups aren’t pleased with this,” they indicated. However, the announcement from the Qingshan District government suggests that even if there is a willingness at the top, local authorities may not comply. The issuance and revocation of hazardous chemicals licenses fall under their jurisdiction.
In the ongoing federal case, Martin Estrada, the U.S. Attorney for the Central District of California, stated that this indictment signals a comprehensive approach by the federal government to combat fentanyl abuse. “We’re not just targeting mid-level dealers on the dark web or the major drug cartels; we’re aiming to trace back the sources and identify the suppliers of precursor chemicals,” which includes Hubei Aoks Bio-Tech.
Court documents reveal that between 2016 and 2023, Aoks Bio-Tech supplied 11 kilograms of fentanyl precursors and 2 kilograms of xylazine, mislabeling these shipments as cosmetics and household products intended for U.S. buyers. Notably, the buyer in question was an undercover officer.
The four executives involved have been identified: Xuening Gao, a primary responsible party; Guanzhou Gao, the accountant; Yajing Li, who handled external communications; and another unnamed sales executive. In an interaction with the agent in October 2023, Yajing Li expressed concerns, stating, “You know, the U.S. government isn’t friendly towards Chinese suppliers, so we are very cautious with American customers. You always aim to cut off our livelihoods.” Following this, Aoks Bio-Tech ceased supplying “hazardous chemicals.”
Federal prosecutors have indicated that these precursor manufacturers supply drug traffickers globally, including those in the United States and Mexico. Once in Mexico, these precursors are synthesized into fentanyl powder and pills for distribution across the U.S. U.S. prosecutor Mack Jenkins noted that the largest buyers in Mexico are the Sinaloa Cartel and the New Generation Jalisco Cartel.
In Los Angeles County, the death toll from opioid overdoses in 2023 reached 3,092, showing a slight decrease from 3,220 deaths in 2022. Meanwhile, the dangers of xylazine are becoming increasingly evident in both Los Angeles County and California, with overdose deaths from this sedative escalating steadily despite its classification as a tranquilizer.
