The WSJ reports that China is aiming to potentially support China cracking down on North American fentanyl trade as a possible excuse to launch trade negotiations between China and the US. Fentanyl overdose kills hundreds of thousands of people in the United States and Canada each year. China is a key player in the North American fentanyl market.
China may propose cooperation on the fentanyl crisis as “off-ramp from hostility” to promote dialogue with the tram administration, according to an unnamed source cited by the Wall Street Journal. Potentially, China has the resources to tackle the fentanyl issue in North America, as this crisis and its role in the market is essential. The Chinese chemical company reportedly exports fentanyl precursors and offers consultations to Americans who wish to integrate the drug on online forums.
China may want to talk as it was explicitly cited by Donald Trump when he motivated China to impose the toughest tariffs. Dialogue between China and the US is not impossible. As Trump himself recently said, “It’s natural to ask,” referring to asking China to help resolve the conflict between Russia and Ukraine.
Fentanyl Crisis Statistics
Terminology such as the “fentanyl crisis” and “fentanyl epidemic” is not an exaggeration. The word “tragedy” fits in.
Fentanyl is a synthetic opioid used medically as an anesthetic, but is much more potent than heroin and morphine. In the 2010s, recreational use of fentanyl exploded in North America caused deaths from overdose in hundreds of people every day. At its peak in 2022, fatal overdose of synthetic opioids (almost fentanyl) reached nearly 80,000 in the US alone.
In Canada, the population is five times lower, so it’s not as high as the United States, for example. For example, 2023 was marked with around 6,000 deaths related to fentanyl. However, looking at the deaths of a population of 100,000, we can see that Canada is closer to the United States.
Most of the victims of overdose are men under the age of 45, but the number of elders among fentanyl victims is on the rise. The crisis has affected both men and women of all ages, including preschool children.
These numbers may seem too big to achieve the scale of the tragedy. To get a more vivid and impressive idea of ​​this epidemic death, you might think that at its peak, one person was killing an hour in Canada and one person every seven minutes in the US.
Since 2022, both the US and Canada have seen a fatal decline in fentanyl overdose, but the epidemic measures are still terrible. The Diplomatic Council notes that fentanyl deaths in 2022 are 10 times greater than the total US military casualties in the Iraq and Afghan wars. The comparison with the war does not seem misguided. The death toll from the fentanyl crisis coincides with the death tolls of the most discouraged military conflict of the 2020s: Sudan, Gaza, Yemen, Ukraine.
For some reason, North America has reached a point where there are casualties of war, but they have not participated in the war. Except for the US trade war. The two countries exposed to the most severe tariffs are China and Mexico, key players in the US fentanyl trade. Another country facing high tariffs is Canada. Fentanyl at the Valerian Institute in Canada was also part of the problem.
Fentanyl Trade: China, Mexico, Cryptocurrency
In 2022, drug enforcement agencies called China a major source of American murder. The drug is sent from China to North America via mail or via Mexico. Two years later, a Congressional Committee argued that China was subsidizing the production of fentanyl precursors, which would turn into an illegal drug in North America. The report includes the following:
“The PRC (People’s Republic of China) had planned all fentanyl analogs as controlled substances in 2019, meaning that it currently subsidizes illegal drug exports under both the US and PRC laws.
Chinese authorities have denied responsibility for the crisis and allegedly cooperated with the US enforcement efforts to curb human trafficking.
Cryptocurrency, on the other hand, plays a dual role. The February 2025 Chain Dissolution Report highlighted how digital assets can promote and expose fentanyl trade. In the darknet market, fentanyl and its precursors are often sold for Bitcoin or Monero.
Chainalysis said it allowed analysts to map human trafficking networks as some buyers and sellers would not anonymize their activities. Cryptocurrency allows remote drug purchases and money laundering, but also offers non-cash transparency.
“While cartels may benefit from speed, low transaction fees and cross-border efficiency, the reliance on blockchain has made it easier for investigators to track these transactions with traditional cash-based money laundering, as issuers and centralized services typically have the ability to freeze assets when needed.”
It’s an unclear way that codes can help promote drug trafficking and at the same time disrupt illegal material markets.
Conclusion
It remains unclear whether China is willing or able to dismantle the truly transcontinental fentanyl supply chain. Still, it’s a powerful negotiation tip when the Trump administration looms and trade talk. In 2019, US lawyer Aide Matt Cronin said frankly: “The fact that if the People’s Republic of China wanted to shut down the synthetic opioid industry, they could do so in a day.”
