DAYTON, OH — A federal grand jury has indicted two Chinese pharmaceutical companies and six Chinese citizens for allegedly selling chemical precursors used to manufacture fentanyl destined for the United States and forming an alliance with a designated terrorist organization.
The charges against Shandong Believe Chemical Company, Shandong Ranhang Biotechnology, and individuals Hanson Zhao, Gao Yanpeng, Xia Yi, Zhang Jian, Wang Zhoalan and Zhang Chunhai stem from Operation Box Cutter, an FBI-led multi-agency investigation targeting the global fentanyl supply chain. The operation marks unprecedented cooperation between U.S. and Chinese authorities, with China’s Ministry of Public Security providing critical intelligence to federal investigators.
From July 2025 through January 2026, the defendants allegedly used a sophisticated network to openly market, sell and deliver chemical precursors to domestic and foreign drug traffickers planning to manufacture fentanyl for U.S. distribution. Federal prosecutors said the companies directed U.S. customers to pay for the illegal cutting agents using cryptocurrency transferred to crypto wallets, with funds ultimately deposited into foreign financial institutions. “Operation Boxcutter represents a historic success with unprecedented indictments including material support for terrorism – a major step in this FBI’s coast-to-coast takedown of the fentanyl crisis,” FBI Director Kash Patel told Fox News Digital.
The indictment alleges the defendants conspired to manufacture and distribute 400 grams or more of fentanyl mixture. Three defendants also allegedly sold chemical precursors and medetomidine to a member of the Cártel del Golfo, known as the Gulf Cartel, which the State Department has designated as a foreign terrorist organization. Medetomidine, an animal tranquilizer up to 200 times more powerful than morphine, can increase the yield of a single kilogram of fentanyl at least twenty-fold, producing millions of street-level doses, according to federal authorities. Drug traffickers use these chemical precursors to manufacture fentanyl and other substances known as “cut” to dramatically increase the quantity of doses available for sale.
The operation represents a significant breakthrough in U.S.-China cooperation on combating the fentanyl crisis. China’s Ministry of Public Security provided intelligence that helped “advance our understanding” of Shandong Believe Chemical Company and its criminal network, said Joe Perez, the FBI operations director. The collaboration follows FBI Director Patel’s historic visit to China last year, marking the first time in a decade an FBI director traveled to the country for discussions with Chinese counterparts about the fentanyl epidemic. China subsequently began tightening controls on fentanyl precursor chemicals following those high-level meetings.
Federal prosecutors have not yet announced when the defendants will appear in court or whether any have been arrested. The indictments were returned by the federal grand jury in Dayton, Ohio, though it remains unclear whether any of the Chinese nationals are in U.S. custody. The charges carry potential sentences that could include decades in federal prison, though specific penalty ranges were not disclosed in the initial court filings. The case highlights the Justice Department’s efforts to target the international supply chain that feeds America’s fentanyl crisis at its source.
The investigation comes as federal authorities continue dismantling major drug trafficking networks across the United States. In a separate but related case, Jose Guadalupe Favela, a 68-year-old Mexican national and Sinaloa Cartel member, was recently sentenced to more than 15 years in prison for distributing methamphetamine through Georgia. Favela’s operation, which operated out of Monroe, Georgia, involved storing up to 800 kilograms of marijuana, cocaine and methamphetamine between two ranch locations. “Jose Favela was a significant operative in the Sinaloa Cartel, responsible for facilitating the distribution of massive quantities of deadly drugs into Georgia,” said U.S. Attorney William R. Keyes.
Operation Box Cutter underscores the global nature of the fentanyl crisis and the complex international partnerships required to combat it effectively. Patel noted that the crisis “doesn’t start at the southern border, but rather with the flow of chemical precursors and the networks that move them.” The FBI director described the Chinese cooperation as “groundbreaking” and credited the partnership with helping to “cut off precursors and crush the plague of fentanyl.” The case marks a rare instance of successful law enforcement collaboration between the two superpowers on a major criminal investigation.
