Risch Opening Statement at Hearing on Fentanyl from Transnational Criminal Organizations, China

WASHINGTON- U.S. Senator Jim Risch (R-Idaho), chairman of the Senate Foreign Relations Committee, today gave the following opening remarks at a full committee hearing titled, "Dismantling Transnational Criminal Organizations in the Americas". Witnesses included Christopher Urben, Managing Director, Nardello & Co and Assistant Special Agent in Charge (Retired), Special Operations Division at the U.S. Drug Enforcement Administration; and Vanda Felbab-Brown, PhD, Director of the Initiative on Nonstate Armed Actors at the Brookings Institution.

"Today, we will have a good hearing on the important issue before our hearing today, which is the tragic drug epidemic that is a scourge on our country today. Thousands of Americans die from an overdose every year and according to the latest assessment in Idaho, overdoses continue to rise. In 2023, there were 264 deaths related to opioids in my home state of Idaho, and half of overdose deaths involved fentanyl. I suspect the numbers are very similar in other states. But tragically, other synthetic opioids and cocaine also wreak havoc on communities across the country.

"I want to be clear: though more could always be done to curb illicit drug use in the United States, these deaths are the result of two of America’s foremost adversaries— China and transnational criminal organizations— uniting against us to pump these drugs into our country, make a profit, and take money out of America, all at the expense of American lives.

"Today, we will examine the threat posed by these transnational criminal organizations to the security of our country and the stability of the Western Hemisphere.

"Mexican cartels and Colombian criminal organizations are the main source of synthetic opioids and cocaine driving U.S. overdose deaths. But the cartels are only able to make these drugs with the help of China.

"China, America’s greatest competitor, provides significant tax incentives to domestic producers of fentanyl precursors and allows those producers to export freely to the U.S. and Mexico. You heard that right—China is subsidizing the fentanyl that flows across our borders and kills Americans.

"The Chinese government’s tacit endorsement of this massive drug trade is a huge issue, and we have worked to take substantial actions, but more must be done. The Biden Administration touted China’s false progress on this, and China is still unwilling to do what is needed to stop the flow of chemicals to our hemisphere. Neither of those are helpful.

"In addition, the rapid growth of Chinese money launderers' funds not just Mexican drug traffickers, but also a growing cyber scam industry that steals billions from Americans. All of this is interconnected. We can and must do more to hold these Chinese actors accountable.

"I would be remiss if I did not acknowledge that recently Mexico has taken positive measures, such as extraditing several senior cartel members to the U.S. and its deployment of armed forces to secure its borders. But, these are small steps compared to what needs to be done–much more action is needed, and it must be done faster to save American lives.

"As one example, the Cartels might take in as much as $500 billion annually, but Mexican authorities reported just $2.6 billion in fraudulent transactions from the three years between 2019 and 2021. It’s simply unbelievable that the Mexican government has not been able to track the other 497 billion dollars that are tied up in this illegal industry.

"It's open knowledge that the cartels leverage their profits to acquire sophisticated weapons and to commit horrible atrocities. They murder, extort, kidnap, and torture those who stand in their way – and in some cases, people who are just in the wrong place at the wrong time. As part of these operations, the cartels challenge the Mexican government, and as of late have expanded their reach across our hemisphere and even into Europe. This situation is growing worse, and it is not getting better..

"And with that, I’ll turn it over to the Ranking Member."

These remarks have been lightly edited for clarity. Witness testimony is available on foreign.senate.gov.