New Sanctions Bill Targets China and Cartels: Grants President Broad Power to Block Assets Globally

The Strengthening Sanctions on Fentanyl Traffickers Act of 2025 is a major move to choke off the international fentanyl supply chain. At its core, the bill grants the President sweeping new powers to financially punish foreign individuals and entities involved in the global illicit drug trade, with a specific, immediate focus on actors in China.

This isn't just a slap on the wrist; it’s about weaponizing the U.S. financial system. The bill authorizes the President to use the full force of the International Emergency Economic Powers Act (IEEPA) to block and prohibit all transactions involving property and assets of sanctioned foreign persons that come into contact with the U.S. financial system (Sec. 4). Think of it this way: if a Chinese chemical company is selling precursor chemicals to a cartel, and they get sanctioned, any money they have in a U.S. bank or any transaction they try to run through a U.S. financial institution gets instantly frozen. For busy people, this means the government is getting a massive new tool to disrupt the flow of drug money, but it also means U.S. businesses need to be hyper-aware of who they are dealing with overseas to avoid getting tangled up in blocked transactions.

Targeting the Source: China's Role

The bill explicitly mandates that the President prioritize identifying and sanctioning persons from the People's Republic of China (PRC) involved in shipping fentanyl, precursors, or manufacturing equipment to Mexico or other drug-producing countries (Sec. 3). This prioritization must continue until the President certifies that the PRC is no longer the primary source for these shipments. The sanctions authority is broad, covering entities in China, Hong Kong, or Macau that contribute to the spread of synthetic narcotics, including Chinese ports, ships, and even online marketplaces that knowingly facilitate these sales (Sec. 4).

What’s notable here is the scope. The bill even targets “covered PRC government entities” or Chinese entities that knowingly provide material support to them if they are involved in facilitating the flow of illicit narcotics. This provision significantly ratchets up the potential for diplomatic and trade friction, moving the focus beyond individual criminals to state-linked actors. It also means that if you’re a U.S. company relying on a Chinese online platform for legitimate supplies, and that platform is found to be facilitating precursor sales, you could find your supply chain suddenly interrupted by U.S. sanctions.

Locking Down Cartels and Global Traffickers

Beyond China, the bill ensures that sanctions remain firmly in place against eight specific, major Mexican drug cartels—including the Sinaloa and Jalisco New Generation Cartels (Sec. 5). The only way for sanctions to be lifted on any of these groups is if the President notifies Congress that the cartel is no longer engaged in the fentanyl trafficking activities that led to the original sanctions. This effectively institutionalizes the pressure on these organizations.

Furthermore, Section 6 creates a broad, global sanctioning authority, allowing the President to sanction any foreign person who significantly contributes to international drug trafficking. The menu of sanctions here is extensive, ranging from asset blocking and prohibiting loans from U.S. financial institutions to denying visas and barring entry to the U.S. for leaders of sanctioned organizations. If you're an individual sanctioned under this authority, you are generally deemed inadmissible to the U.S. and your existing visa is immediately revoked (Sec. 6). This is a heavy-handed measure designed to isolate traffickers and their associates completely from the U.S. and its financial system.