# Illegal drug trade in China

Opium has played an important role in China's history since the First and Second Opium Wars in the mid-19th century. When the Republic of China was defeated, and the People's Republic of China took power, those involved in the illegal drug trade moved to Northeast Myanmar (Burma) setting up the Golden Triangle, as well to Singapore, Hong Kong, and Taiwan.

## Opium

The Mao Zedong government is generally credited with eradicating both consumption and production of opium during the 1950s using unrestrained repression and social reform. Ten million addicts were forced into compulsory treatment, dealers were executed, and opium-producing regions were planted with new crops. Remaining opium production shifted south of the Chinese border into the Golden Triangle region. The remnant opium trade primarily served Southeast Asia, but spread to American soldiers during the Vietnam War, with 20 per cent of soldiers regarding themselves as addicted during the peak of the epidemic in 1971.

### Synthetic drugs

Manufacture of crystal methamphetamine (ice, shabu, bingdu) is facilitated by the availability of precursor chemicals, such as pseudoephedrine and ephedrine. Seizure information indicates that methamphetamine laboratories are located in SAR Hong Kong and the Golden Triangle in Myanmar (Burma). Many of the traffickers for the clandestine crystal methamphetamine laboratories are from organized crime groups based in Hong Kong, Taiwan, and Japan.

## Trafficking
### 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

Drug seizures in China (in metric tons) 1995–2003 Source: Chinese Government, 1995–2001; DEA Beijing, 2002 and INCSR (China), January 2003-June 2003. :
| | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 |
| Heroin | 2,376 | 4,347 | 5,478 | 7,358 | 5,364 | 6,281 | 13.2 | 9.29 | 4.07 |
| Opium | 1.11 | 1,745 | 1,880 | 1,215 | 1,193 | 2,428 | 2.82 | 1.2 | N/A |
| Precursor chemicals | 86 | 219 | 383 | 344 | 272 | 215 | 208 | 300 | N/A |
| Marijuana | 0,466 | 4,876 | 2,408 | 5,079 | 0,106 | 4,493 | 0,751 | 1.3 | N/A |
| Crystal methamphetamine | 1,304 | 1,599 | 1,334 | 1,608 | 16,059 | 20.9 | 4.82 | 3.19 | 4.53 |

### 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.

## Drug-related money laundering

"Unlike other MLOs, which transfer proceeds into and out of the country, a significant amount of the money laundered by CMLOs stays in the United States. Traditionally, CMLOs purchase criminal proceeds in U.S. cities for a nominal fee, transfer the equivalent value of foreign currency to drug traffickers’ foreign bank accounts and then “sell” the drug proceeds at a substantially higher rate to Chinese nationals seeking to avoid China's currency controls. These organizations also exploit China's “one country, two systems” policy by using the more liberal banking system in Hong Kong to establish USD bank accounts to facilitate their schemes."

## Drug abuse and treatment
### Drugs of choice

The major drugs of choice are injectable heroin, morphine, smokeable opium, crystal methamphetamine, nimetazepam, temazepam, and MDMA. Preferences between opium and heroin/morphine, and methods of administration, differ from region to region within China. The use of heroin and opium has increased among the younger population, as income has grown and the youth have more free time. China considers crystal methamphetamine abuse second to heroin/morphine as a major drug problem. The use of MDMA has only recently become popular in China's growing urban areas.
The South China Morning Post reports the rise in the use of ketamine, easy to mass-produce in illicit labs in southern China, particularly among the young. Because of its low cost, and low profit margin, drug peddlers rely on mass distribution to make money, thus increasing its penetrative power to all, including schoolchildren. The journal cites social workers saying that four people can get high by sharing just HK$20 worth of ketamine, and estimates 80 per cent of young drug addicts take 'K'.

### Addict population

As of 2013, there were 2,475,000 registered drug addicts in China, 1,326,000 of which were addicted to heroin, accounting for 53.6% of the addict population. Some unofficial estimates range as high as 12 million drug addicts.
In 2001, intravenous heroin users accounted for 70.9 percent of the confirmed 22,000 human immunodeficiency virus (HIV) and acquired immune deficiency syndrome (AIDS) cases. Chinese officials are becoming increasingly concerned about the abuse of methamphetamine and other amphetamine-type stimulants.

### Treatment and demand reduction programs

Both voluntary and compulsory drug treatment programs are provided in China, although the compulsory treatment is more common. Most addicts who attend these centers do so involuntarily upon orders from the Government. Voluntary treatment is provided at centers operated by Public Health Bureaus, but these programs are more expensive and many people cannot afford to attend them. Addicts who return to drug use after having received treatment, and cannot be cured by other means, may be sentenced to rehabilitation in labor camps for re-education through labor. These centers are run under conditions similar to prisons, including isolation from the outside world, restricted patient movement and a paramilitary routine.
Demand reduction efforts target individuals between the ages of 17 and 35, since this is the largest segment of drug users. These efforts include, but are not limited to, media campaigns and establishment of drug-free communities.

## Drug law enforcement agencies and legislation

At the national level, the agencies specifically responsible for the control of legal and illicit drugs are the Ministry of Health, the Ministry of Public Security, and the Customs General Administration. The State Food and Drug Administration oversees implementation of the laws regulating the pharmaceutical industry. In the Customs General Administration, the Smuggling Prevention Department plays the major role in intercepting illegal drug shipments. The Narcotics Control Bureau of the Ministry of Public Security handles all criminal investigations involving opium, heroin, and methamphetamine.
In 1990, the Chinese government set up the National Narcotics Control Commission [zh] (NNCC), composed of 25 departments, including the Ministry of Public Security, Ministry of Health and General Administration of Customs. The NNCC leads the nation's drug control work in a unified way, and is responsible for international drug control cooperation, with an operational agency based in the Ministry of Public Security.

## Treaties and conventions

China is a party to the 1988 U.N. Drug Convention, the 1961 U.N. Single Convention on Narcotic Drugs as amended by the 1972 Protocol, and the 1971 U.N. Convention on Psychotropic Substances. China is a member of the International Criminal Police Organization (INTERPOL), and has been a member of the INCB since 1984.
China also participates in a drug control program with Iran, Pakistan, Tajikistan, Turkmenistan, Uzbekistan, Russia, and the United States. This program is designed to enhance information sharing and coordination of drug law enforcement activities by countries in and around the Central Asian Region.
In June 2000, China and the United States signed a Mutual Legal Assistance Agreement (MLAT). This treaty subsequently went into effect on March 8, 2001. In 1999, China and the United States signed a Bilateral Customs Mutual Assistance Agreement. However, this agreement has not yet been activated. A May 1997 United States and China Memorandum of Understanding on law enforcement cooperation allows the two countries to provide assistance on drug investigations and prosecutions on a case-by-case basis.
China has over 30 MLATs with 24 nations covering both civil and criminal matters. In 1996, China signed MLATs that gave specific attention to drug trafficking with Russia, Mexico, and Pakistan. China also signed a drug control cooperation agreement with India.
China and Myanmar continue dialogue on counter-drug issues, such as drug trafficking by the United Wa State Army along the China–Myanmar border. The Government of China encourages and provides assistance for alternative crop programs in Myanmar along the China–Myanmar border. China is also building on Memoranda of Understanding that are currently in place with Myanmar, Cambodia, Laos, Thailand, Vietnam, and the United Nations Office on Drugs and Crime.