Caught in the Fentanyl Crossfire: Japan's Emerging Role in a US–China Crisis

Recent investigations have put Japan in an unexpected position in the global fentanyl crisis. United States authorities uncovered a Chinese criminal network that was using firms registered in Japan, notably in Nagoya, as a hub to ship fentanyl precursors into America.

In June 2025, Japanese media reported that a Chinese group had allegedly set up a fentanyl trafficking base in Nagoya aimed at exporting illicit chemicals to the US. The US Drug Enforcement Administration (DEA) has since charged two Chinese executives from Wuhan's Hubei Amarvel Biotech. A US jury convicted them of conspiring to import fentanyl precursor chemicals and commit money laundering. Amarvel Biotech's court testimony revealed they worked under a "boss in Japan" identified as Fengzhi Xia.

The Nagoya Hub and Smuggling Network

Nihon Keizai Shimbun (Nikkei)'s investigation traced the operation through 16 interlinked companies in China and Japan controlled by Xia. Two of Xia's firms, one in Wuhan and one in Nagoya, operated under the brand name FIRSKY, a front company label that served as a cover and command center for the smuggling network. Court documents showed that the Wuhan firm advertised how it could label precursor chemicals as mundane goods such as "dog food" or "engine oil" to slip past customs.

Shipping records and trial exhibits indicate the Nagoya FIRSKY office was active until mid-2024, when it was abruptly liquidated during the US case. US prosecutors believe Xia managed money transfers and logistics from Japan, and that the Nagoya firm likely handled precursor trafficking funds until at least 2024.

These revelations show how Japan became a node in the pipeline. Chinese suppliers could route precursor chemicals through Japanese addresses and financial accounts, taking advantage of gaps in oversight. Many fentanyl precursors are not explicitly controlled under Japan's narcotics laws, creating a loophole that traffickers exploited.

According to DEA materials, Chinese chemical companies increasingly produce fentanyl precursors and ship them worldwide, often using deceptive packaging and cryptocurrency to avoid detection. In this case, those techniques carried chemicals through Japan without alerting authorities.

A Deadly Drug and a Global Problem

On August 21, on the radio program Ohayo Tera-chan, Kyoto University professor Satoshi Fujii explained what makes fentanyl so dangerous. Derived from synthetic opioids, it is "just two milligrams" away from being fatal. He described how American cities now see groups of users collapsed on sidewalks "like zombies."

Originally developed as a painkiller for terminal cancer patients in the 1960s, fentanyl is now produced illegally and sold cheaply via social media. Tens of thousands of Americans die annually from overdoses, a toll surpassing traffic accidents and gun deaths.

What startled Fujii was not only the scale of the US crisis but Japan's inadvertent involvement. According to Nikkei's reporting, a Chinese syndicate created a corporate foothold in Nagoya to coordinate shipments of precursor chemicals. America's DEA has now opened a full investigation, tracking money flows and cryptocurrencies used by the group.

"Japan has ended up in the position of assisting this, and that could turn into a major diplomatic problem with the US," Fujii warned.

Weak Links at the Border

One recurring theme in commentary has been Japan's blind spot at its borders. On August 22, former Ministry of Finance official Yoichi Takahashi took up the issue on Tora no Mon News.

*Kaetsu University Professor Yoichi Takahashi.*

Japanese police and the Ministry of Health, Labor and Welfare (MHLW) have pledged stronger domestic enforcement. However, Takahashi argued that the missing piece is Customs, under the Ministry of Finance (MOF).

"Waterfront control is the MOF's job. Customs is the key. Yet nobody mentions the MOF," he said, highlighting that precursors often move through bonded warehouses, legal grey zones where goods can be stored and re-exported with limited scrutiny.

He added that earlier in 2025, a customs officer had even lost sensitive documents containing hundreds of names of smuggling suspects. That raised questions about Japan's ability to manage intelligence securely. For Takahashi, the episode reinforced suspicions that the system was failing at its first line of defense.

"Once it's inside, it spreads everywhere. At the border, you can stop it with one snap. That's the simplest stage, yet the most neglected," he said.

Regulatory Blind Spots and Enforcement Gaps

Japan's customs and drug-control agencies had not previously reported any fentanyl seizures. On June 27, Finance Minister Katsunobu Kato admitted that "no fentanyl had been seized" at Japanese borders in the past six years, even as the Nagoya revelations broke. This discrepancy alarmed critics.

Fujii openly suggested that Japanese customs had become effectively "dysfunctional" for missing the shipments. Meanwhile, Takahashi pointed to the MOF's silence as a sign of systemic weakness.

Domestic observers note that Japan's current drug laws focus on established narcotics, with some fentanyl analogues and precursors slipping through the cracks. The MHLW has been urged to update its schedules, while Customs and police have been pressed to boost intelligence-sharing. So far, however, Japanese authorities say they have found no evidence of fentanyl or precursors actually landing inside Japan from this network.

Political and Diplomatic Fallout

The Nagoya revelations have reverberated through bilateral and global politics. China's role in the fentanyl crisis has long been a flashpoint for US–China tensions. And now Japan finds itself caught in the crossfire.

American leaders have been vocal. In late June, US Ambassador to Japan George Glass publicly accused the Chinese Communist Party of deliberately fueling the opioid epidemic. He urged closer cooperation with Tokyo.

Fujii even suggested that Washington could tie drug enforcement to trade policy. "Japan could be told, 'We'll raise your tariffs if you don't deal with this.'"

That was the stance the US once took with Canada and Mexico, and it could apply to Japan too.

In Tokyo, ministers have promised vigilance. Yet as Takahashi pointed out, the government continues to frame the response in terms of police and health authorities, with little mention of Customs. Until Japan closes that gap, traffickers may continue to view its ports as convenient transit points.

Toward Solutions

In response, Tokyo's agencies have begun reviews. Customs officials say they will trace any exports from implicated companies, while the police are liaising with the DEA. The MLHW is examining whether to list more fentanyl analogues as controlled drugs. Commentary from Takahashi suggests Japan must also strengthen oversight of bonded warehouses and improve financial surveillance to prevent laundering by drug rings.

Ultimately, the Nagoya case is likely just one channel in a vast transnational network. But it has exposed vulnerabilities in Japan's own system. As Fujii concluded, "Trying to block every route is like whack-a-mole. But unless Japan strengthens its defenses, it will end up complicit."

Author: Daniel Manning