We hope that China will allow DEA to reestablish a closer working relationship with Chinese drug enforcement units and will allow DEA to set up an office in Beijing. Although there are shortcomings in bilateral enforcement cooperation, the Chinese continue, on their own, to mount the most vigorous interdiction effort in East Asia. The laws against drug trafficking are harsh. The death penalty is applied to cases involving more than 50 grams of heroin. China's status as a major chemical producer and exporter also makes it a target for criminals seeking to illegally procure chemical precursors.
Money laundering is also clearly easier in a booming economy, increasingly guided by market forces.
The Chinese Government has shown a willingness to work under multilateral mechanisms to control both chemical diversion and money laundering, but domestic detection and enforcement remain weak. China's geographic position offers a tempting route to the west for heroin and other opiates from the narcotics producing countries of the Golden Triangle. As a result, China has become a major drug transit country. Its transport and communication links, which are improving due to economic development, facilitate movement of narcotics as well as legitimate goods. Burma remains the source of most heroin transiting China.