Trafficking groups Many of the individuals involved in the international trafficking of Southeast Asian heroin are ethnic
Kokang,
Yunnanese,
Fujianese,
Cantonese, or members of other
ethnic Chinese minority groups that reside outside of China. These groups reside, and are actively involved in drug trafficking in regions such as Myanmar, Cambodia, Canada, Hong Kong, Taiwan, Thailand, and the United States. These criminal organizations involved in drug trafficking are increasingly arming themselves with
automatic weapons and
grenades to protect their drug shipments from theft by rival organizations. In China, sentencing for drug trafficking can include capital punishment. For example, the seizure of 50 grams or more of heroin or crystal methamphetamine could result in the use of the death penalty by the Government.
Hui Muslim drug dealers are accused by
Uyghur Muslims of pushing heroin on Uyghurs. Heroin has been vended by Hui dealers. There is a typecast image in the public eye of heroin being the province of Hui dealers. Hui have been involved in the Golden Triangle drug area.
Drug seizures Heroin China shares a 2000 km border with Myanmar, as well as smaller but significant borders with Laos and Vietnam. Chinese officials state that the majority of heroin entering China comes over the border from Myanmar. This heroin then transits southern China, through SAR Hong Kong, and then on to international markets. Increased Chinese
interdiction efforts along the Myanmar–China border have forced traffickers to use routes in Thailand, Laos, Myanmar (Burma), Cambodia, and SAR Hong Kong.
Synthetic drugs Due to the availability of the
precursor chemicals, traffickers produce large amounts of
crystal methamphetamine. Several ports in Hong Kong SAR serve as transit points for crystal methamphetamine transported by
containerized cargo to international drug markets. For decades, Asian crime syndicates in partnership with ethnic minority militias have used the Golden Triangle - centred on northern Myanmar and including parts of Laos and Thailand - to grow opium and refine heroin. More recently, meth production by groups such as the Sam Gor syndicate has exploded in the region, in part due to a crackdown in neighbouring China. Another case involved
Liu Zhaohua, who produced up to 31 tonnes of
methamphetamine and made more than US$5.5 billion from it. In 2006, during the term of
Hu Jintao, Liu was sentenced to death for drug trafficking, and in 2009 Liu was executed.
Fentanyl In August 2022, China suspended counter-narcotics cooperation with the United States in retaliation for then-House Speaker Nancy Pelosi's visit to Taiwan. The cooperation was restored in late 2023 following a diplomatic summit between
General Secretary of the Chinese Communist Party Xi Jinping and
U.S. President Joe Biden. Over a two-year period, close to $800million worth of fentanyl pills were illegally sold online to the US by Chinese distributors. The drug is usually manufactured in China, then shipped to Mexico, where it is processed and packaged, which is then smuggled into the US by
Mexican drug cartels. In October 2023,
OFAC sanctioned a China-based network of fentanyl manufacturers and distributors. U.S. President
Donald Trump blamed China for the
opioid crisis in the United States. He said the tariffs are intended to pressure China to do more to stop the flow of fentanyl into the US. In 2025, the Trump administration sharply criticized China for allegedly sustaining the flow of fentanyl into the United States, with President Trump accusing Beijing of "poisoning our citizens" through the export of precursor chemicals used in the drug's production. While U.S. officials acknowledged a drop in fentanyl purity, suggesting difficulties in accessing key ingredients, China rejected the accusations, framing the opioid crisis as primarily a U.S. domestic issue driven by demand. Chinese authorities emphasized their regulatory actions and cooperation but expressed frustration over the lack of recognition from Washington. Commenting on China's role,
RAND Corporation researcher David Luckey argued that, as a command economy, China has the capacity to exert far greater control over its chemical industry, stating that if the Chinese Communist Party truly wished to prevent companies from supplying precursors to criminal networks, it could do so more effectively. ==Drug-related money laundering==