China has expanded its export controls on fentanyl precursor chemicals, adding two new substances to its licensing requirements for shipments bound for the United States, Canada, and Mexico. The decision, announced by China’s Ministry of Commerce and four other government agencies on September 22, increases the number of regulated chemicals to 18 in the category designed to restrict substances that could be used in fentanyl production.

These regulatory measures apply specifically to North American destinations, while a separate list governs the export of 41 precursor chemicals to Myanmar, Laos, and Afghanistan. The announcement comes just one day before Chinese President Xi Jinping's planned state visit to the United States, marking a further step in ongoing efforts to address bilateral concerns over the flow of fentanyl and synthetic drugs.

Fentanyl and its precursors have been a key issue in US-China trade and diplomatic discussions, particularly since the Trump administration returned to office last year. US President Donald Trump reiterated concerns in a letter to Congress last Wednesday, urging China to intensify its efforts to reduce the supply of fentanyl precursors reaching North America. The letter acknowledged progress made by China, including the export licensing regime introduced in 2025, but emphasized that China remains the world's largest producer of many chemicals used to illicitly manufacture fentanyl, methamphetamine, and other synthetic drugs.

The United States also released its annual Major Drug Transit and Illicit Drug Producing Countries report recently, listing 23 countries including China. In November, the US government reduced tariffs related to fentanyl precursors from 20 percent to 10 percent, a move aimed at encouraging stronger cooperation on the issue.

During President Trump’s visit to Beijing in May, US officials stated that fentanyl precursor regulation was part of discussions with Chinese leadership, though China’s official statements made no mention of these talks. In congressional hearings held in June, testimonies highlighted the role of Chinese money laundering networks in financing Mexican drug cartels, pressing Trump to prioritize the issue in his interactions with President Xi. These hearings distinguished money laundering as a separate but equally critical challenge in curbing the fentanyl trade alongside chemical control.

In the lead-up to Xi’s US visit, enforcement agencies in both countries have emphasized cooperation. On September 10, China’s Ministry of Public Security announced a joint operation with the US Federal Bureau of Investigation targeting the manufacture and trafficking of synthetic cannabidiol precursors. The ministry described the case as evidence of an effective bilateral counter-narcotics law enforcement mechanism. FBI Director Kash Patel visited Beijing in July for talks with Public Security Minister Wang Xiaohong, focusing on efforts to crack down on fentanyl precursor production and trafficking.

As Xi’s state visit draws near, these combined measures underscore the ongoing, complex negotiations between China and the United States to tackle the global opioid crisis and related transnational criminal activities.