In September 2024, a federal indictment filed in Los Angeles highlights an intensified effort to combat the trafficking of fentanyl and xylazine, substances that have been wreaking havoc across the nation. The case centers around a biotechnology company from Hubei, China, named Hubei Aoks Bio-Tech, along with four of its executives.
However, the repercussions for the company appear to be less significant than one might expect. While facing charges in the U.S., all four executives remain in China and have not been arrested. The Qingshan District Government in Hubei province even approved the company’s request to cancel its “dangerous chemicals operating license” on November 27, 2023, leaving many to wonder about the definition of these so-called dangerous chemicals.
Federal agents claim that the Chinese government has shown some willingness to cooperate, citing the dangers fentanyl also poses to its own citizens. “The higher-ups don’t like it,” they noted. Yet, the announcement from the Qingshan District Government suggests that even if there is interest from higher authorities, local governments may not comply, as they have the power to grant or withdraw licenses related to dangerous chemicals.
Returning to the federal case, Central District of California U.S. Attorney Martin Estrada recently stated that the indictment signifies a comprehensive strategy to combat fentanyl abuse. “We are not just targeting mid-level distributors on the dark web and the cartels producing large quantities of drugs; we are tracing the source to identify the suppliers of precursor chemicals,” one of which is Hubei Aoks Bio-Tech.
Court documents reveal that between 2016 and 2023, Hubei Aoks Bio-Tech supplied 11 kilograms of fentanyl precursors and 2 kilograms of the veterinary sedative xylazine to American buyers, mislabeling the shipments as cosmetics and household products. These buyers, however, turned out to be undercover agents.
The four executives involved are Xuening Gao, the responsible party; Guanzhou Gao, the accountant; Yajing Li, the external liaison; and another unnamed sales manager. Notably, in October 2023, Yajing Li communicated to an agent, “Your government is very unfriendly toward Chinese suppliers, so we are cautious when dealing with U.S. clients. Your government is always trying to cut off our livelihood.” In response to these concerns, Hubei Aoks Bio-Tech ceased supplying “dangerous chemicals.”
Federal prosecutors assert that these precursor manufacturers supply a global network, including drug traffickers in the U.S. and Mexico, with the latter combining them with other materials to synthesize fentanyl powder and pills for distribution across America. Prosecutor Mack Jenkins highlighted that the largest buyers in Mexico are the Sinaloa and New Generation Jalisco cartels.
In Los Angeles County, deaths linked to opioid overdoses reached 3,092 in 2023, a slight decline from 3,220 in 2022. The dangers of xylazine are increasingly evident, as this substance, while a sedative, continues to contribute to rising overdose fatalities in Los Angeles County and across California.
