The U.S. Treasury Department sanctioned a Chinese chemical company and two of its executives Wednesday for trafficking synthetic opioids and cutting agents that helped fuel America’s ongoing overdose crisis.
The sanctions target Guangzhou Tengyue Chemical Co., Ltd. and executives Huang Xiaojun and Huang Zhanpeng, who coordinated shipments of illicit drugs and dangerous cutting agents to the United States.
The move represents the Trump administration’s latest effort to combat the synthetic opioid crisis that has devastated American communities. Opioid overdoses remain the leading cause of death for Americans aged 18 to 45.
“Illicit opioids coming from China are destroying American lives, families, and communities,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “Under President Trump’s leadership, we will use all of the tools at our disposal—including sanctions and prosecutions by our law enforcement partners—to stop this epidemic.”
Since 2021, synthetic opioids have been involved in more than 70 percent of all reported drug overdose deaths. Fentanyl drives most of these fatalities.
China-based chemical manufacturers remain the primary source of fentanyl precursors and other illicit opioids entering American markets.
The FBI announced a federal criminal indictment alongside the sanctions, charging Guangzhou Tengyue and approximately 25 individuals and businesses with conspiracy to commit drug trafficking. The charges stem from a joint FBI-DEA investigation that began in January 2024.
Investigators uncovered a network trafficking multi-kilogram quantities of fentanyl, methamphetamine, and cocaine into the United States. The operation also involved ordering chemical products from China to extend and process drug yields.
Among the most dangerous substances sold were nitazenes—synthetic opioids with high addiction potential—and veterinary analgesics like xylazine, known on the street as “tranq.”
These substances are especially dangerous because they do not respond to Narcan, the standard overdose-reversal drug. This resistance dramatically increases the likelihood of fatal overdoses.
Despite the known risks, Guangzhou Tengyue continued marketing and distributing the deadly chemicals to American buyers. In August 2023, the company agreed to sell a kilogram of protonitazene to a U.S. buyer, assuring them the package would clear customs.
The company’s website prominently advertised nitazenes and xylazine as recently as August 2024.
Even after federal prosecutors unsealed an indictment against the company and Huang Xiaojun in October 2024, business continued. In early 2025, company representatives coordinated sales of medetomidine—another dangerous analgesic—to U.S. customers.
Huang Zhanpeng serves as executive director and owns 50 percent of Guangzhou Tengyue. He’s also listed as the company’s legal representative.
Huang Xiaojun managed a bitcoin account the company used when attempting to sell controlled substances to American buyers in 2023.
The sanctions freeze all U.S.-based assets linked to the company and its executives. American individuals and businesses are prohibited from conducting transactions with them.
Any entities owned 50 percent or more by the sanctioned parties also face automatic blocking.
Violations of these sanctions can result in civil or criminal penalties for both U.S. and foreign persons. Financial institutions risk exposure for engaging in transactions with designated individuals.
The Treasury Department emphasized that sanctions aim to change behavior, not simply punish. The office maintains procedures for individuals seeking removal from sanctions lists.
The investigation involved support from the DEA’s Tampa District Office, the FBI, and the FBI’s Cincinnati Field Office.