WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Guangzhou Tengyue Chemical Co., Ltd. (Guangzhou Tengyue), a chemical company operating in China that is involved in the manufacture and sale of synthetic opioids to Americans. In addition to opioids, Guangzhou Tengyue has also sold dangerous analgesic chemicals often used as cutting agents that are mixed with synthetic opioids and other illicit drugs. Also today, OFAC sanctioned Huang Xiaojun and Huang Zhanpeng, representatives of Guangzhou Tengyue, who were directly involved in coordinating the shipments of these illicit drugs and cutting agents to the United States.
“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.”
Opioid overdose remains the leading cause of death for Americans aged 18 to 45. Since 2021, more than 70 percent of all reported drug overdose deaths have involved synthetic opioids, with fentanyl being the primary synthetic opioid driving this crisis. China-based chemical manufacturing companies remain the primary source of fentanyl precursor chemicals and other illicit opioids entering the United States.
OFAC carried out its investigation with the support of the Drug Enforcement Administration (DEA), including the Tampa District Office (“CHEMEX”), as well as the Federal Bureau of Investigation (FBI) and its Cincinnati Field Office.
Today, FBI is also announcing a federal criminal indictment against Guangzhou Tengyue, Huang Xiaojun, Huang Zhanpeng, and other individuals and companies for a violation of Title 21 U.S. Code 846 (Conspiracy to Commit Drug Trafficking) for their roles in facilitating the flow of illicit drugs and cutting agents to the United States. The charged defendants include three individuals in the United States and approximately 22 individuals and businesses based in China. The indictment is based upon a joint investigation by FBI and DEA, which commenced in January 2024.
The investigation focused on a drug trafficking network responsible for trafficking multi-kilogram quantities of fentanyl, fentanyl adulterants, methamphetamine, and cocaine into and through the United States. The investigation has found that in addition to trafficking in synthesized drugs, the U.S.-based co-conspirators are also ordering products from China for the purpose of extending and processing their drug yield. These products include nitazenes—a class of synthetic opioid—as well as the analgesic chemicals xylazine and medetomidine, and presses for repackaging.
“TRANQ” AND NITAZENES: A DEADLY SYNTHETIC MIX
According to a January 2024 DEA report, synthetic substances known as nitazenes are being trafficked and abused for their opioid-like effects. Such chemicals have a high potential for addiction and can cause respiratory depression and arrest, leading in some cases to death. Additionally, in September 2024, the National Institute on Drug Abuse reported increased findings of a chemical called xylazine, which is commonly referred to as “tranq” in the illicit drug supply. Tranq is an analgesic chemical commonly used in veterinary medicine that drug traffickers utilize as an adulterant, or cutting agent, in synthetic opioids. Crucially, xylazine and related chemicals do not respond to the overdose-reversing effects of Narcan, increasing individuals’ likelihood of dying from an overdose.
GUANGZHOU TENGYUE PUSHES POISON FOR PROFIT
The deleterious effects of these chemicals on users’ health did not stop Guangzhou Tengyue and its representatives from selling them to Americans. In August 2023, for example, Guangzhou Tengyue agreed to sell a kilogram of protonitazene to a U.S. buyer, assuring them that the package would clear U.S. customs. As late as August 2024, Guangzhou Tengyue’s website prominently displayed advertisements for nitazenes and xylazine.
Despite the unsealing of a previous indictment against Guangzhou Tengyue and Huang Xiaojun in October 2024 in the Middle District of Florida, the company continued to operate. In early 2025, Guangzhou Tengyue sales representatives coordinated the sales and shipments of medetomidine—another analgesic chemical similar to xylazine—to customers in the United States.
Huang Zhanpeng is the executive director and 50 percent shareholder of Guangzhou Tengyue. He also is listed as the company’s legal representative.
Huang Xiaojun, who was previously indicted concurrently with Guangzhou Tengyue, is the account holder for a bitcoin account used by Guangzhou Tengyue in its attempt to sell controlled substances to a U.S. buyer in 2023.
OFAC is designating Guangzhou Tengyue Chemical Co., Ltd. and Huang Xiaojun pursuant to Executive Order 14059 for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.
OFAC is designating Huang Zhanpeng pursuant to Executive Order 14059 for having provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of, Guangzhou Tengyue Chemical Co., Ltd.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated or blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here and to submit a request for removal, click here.
For more information on the persons designated today, click here.
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