Investments in Yichang Humanwell have become a topic in the Pennsylvania Senate race between Dave McCormick and Senator Bob Casey

The fentanyl overdose epidemic that killed about 4,000 Pennsylvanians last year, became one of the main issues in the closely watched race for a seat in the U.S. Senate, with both candidates accusing the other of helping to fuel the nation’s opioid crisis.

Republican Dave McCormick says U.S. Sen. Bob Casey (D., Pa.) and other Democrats in Washington are responsible for failing to stop the flow of drugs across the porous southern border.

Meanwhile, Casey’s campaign began running ads a week ago accusing his Republican rival, McCormick, of “profiting off human suffering” while he was CEO of Bridgewater Associates, a hedge fund that invested $1.7 million in Chinese fentanyl producer Yichang Humanwell during his tenure.

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Neither candidate’s argument is basic. The enormous majority of fentanyl and other illegal drugs that enter the United States are smuggled through legal ports of entry, not by unauthorized immigrants, meaning that many of the policies McCormick criticized Casey for opposing — such as building a wall on the southern border or cracking down on so-called sanctuary cities — would do little to address the opioid crisis.

On the other hand, publicly available records show that Casey personally owns, through an investment fund, a petite amount of stock in the same Chinese fentanyl maker whose investments McCormick attacked at Bridgewater. Casey’s investment is in a college savings fund, not an individual stock stake that the senator does not directly control. His stake in the company is vanishingly miniature, no more than 3 cents in June, according to calculations based on the fund’s financial reports.

It’s simple to understand why both candidates talk about the opioid crisis. Research shows that the problem has become increasingly critical to voters, and the topic allows both candidates to paint the narratives they are trying to build around themselves as they compete for Pennsylvania’s Senate seat: McCormick as a ruthless capitalist with ties to China, and Casey as feeble on issues related to the U.S.-Mexico border.

“Bob Casey’s ad has exposed his hypocrisy and lies, and it’s evidence of why Pennsylvanians are so tired of career politicians,” McCormick said in a statement Friday. “Casey had 18 years to secure our border and prevent 100,000 Americans from being killed by fentanyl last year — and under his weakness, that crisis has deepened beyond belief.”

Casey owns between $15,000 and $50,000 in Massachusetts College Portfolio shares, according to his Senate personal financial disclosure. That portfolio includes a miniature stake in an index fund that, in turn, has a miniature stake — a fraction of 1% of its holdings — in Humanwell, the same company McCormick’s firm invested in during his tenure as CEO.

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“David McCormick will say anything to hide how he sold out Pennsylvanians for profit, but the facts are clear: He directly invested millions in Chinese fentanyl and profited off the suffering of Pennsylvanians,” Casey spokeswoman Maddy McDaniel said in a statement. “David McCormick chose to invest in a Chinese fentanyl company, something Bob Casey never did.”

Casey, a three-term incumbent, maintained a lead over McCormick in the polls throughout the race. New York Times/Siena College Poll Of the registered voters released Saturday, 50% said they intended to vote for Casey, while 36% said they intended to vote for McCormick.

McCormick is running for office for a second time and is much less well-known to voters than Casey, whose father was governor.

McCormick narrowly lost the 2022 GOP primary to Mehmet Oz, who secured the endorsement of former President Donald Trump, but lost to U.S. Sen. John Fetterman (D., Pa.) this November. This time, McCormick has Trump’s endorsement.

Controversy surrounding the Chinese manufacturer

McCormick served as CEO of Bridgewater from 2017 to 2022. In 2021, the company invested $1.7 million in Chinese company Yichang Humanwell, also known as Renfu Yiyao, a leading fentanyl producer in the country.

Connecticut-based Bridgewater is the world’s largest hedge fund, with $124 billion in assets under management, according to Forbes.

Casey began slamming McCormick for his company’s investment in Humanwell, pointing out, among other things, the company’s ties to the Chinese Communist Party.

The longtime official also highlighted his record on addressing the opioid crisis, such as his support for Sen. Tim Scott’s (R., S.C.) FEND Off Fentanyl Act, which aims to combat international drug trafficking. In January, Casey introduced the Stop Fentanyl at the Border Actwhich would add resources to U.S. Customs and Border Protection. The bill is in committee.

“So much of the fentanyl that is devastating Pennsylvania families and communities is being smuggled across our southern border,” Casey said when he introduced the proposal. “This bill will help stem the flow of fentanyl into the United States and ensure hard-working law enforcement officers at the border have the resources, technology and support they need to do their jobs.”

McCormick has called the flow of synthetic opioids into the United States a “national security threat” and has been more critical of China during this year’s election campaign after coming under fire for Bridgewater’s ties to China during his unsuccessful 2022 Senate bid.

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It’s impossible to say exactly what role Humanwell has played in the opioid crisis in the United States. Although most of the fentanyl that enters the United States comes from China, it often first enters Mexico in the form of so-called precursors, chemicals that are then combined with heroin and turned into a deadly drug cocktail. Then it’s smuggled across the border, usually under the noses of customs agents through designated border crossings.

Humanwell is a producer of legal fentanyl primarily for medical utilize in China, and the company says it does not export to the United States. However, given the illegal nature of the trade, it is complex to assess whether the company or its products have a role in the international market.

McCormick responded to Casey’s attack ads with an ad of his own that appears to play on this ambiguity, denying that he ever invested in an illegal fentanyl company.

“Bob Casey is lying about me and I will not tolerate it” McCormick says in the ad“I have never invested in illegal fentanyl producers. Never. The fentanyl crisis is because weak politicians like Bob Casey have kept our border open.”