Former acting Homeland Security Secretary Chad Wolf has called on U.S. lawmakers to investigate the increasing involvement of Chinese-linked actors and foreign criminal organizations in the American hemp industry. In a letter to House lawmakers, Wolf warned that these groups are exploiting the U.S. market for hemp-derived tetrahydrocannabinol (THC) products and illegal marijuana operations, posing risks to both public health and national security.
Wolf's concerns, detailed in a letter to the House Select Committee on the Chinese Communist Party, highlight the evolution of the market from a regulated space for industrial hemp and non-intoxicating cannabidiol (CBD) to an unregulated environment for high-potency THC products. These products, often resembling candies and gummies, are frequently marketed in ways that appeal to minors and lack adequate age restrictions, labeling, and safety standards.
The White House's 2026 National Drug Control Strategy reportedly notes that the U.S. marijuana trade has been co-opted by sophisticated, transnational criminal organizations with ties to China. The strategy document points to Oklahoma as an example, where law enforcement estimates that Chinese criminal groups control over 80% of the state's thousands of marijuana and hemp farms.
These operations are reportedly not limited to cultivation; they are also associated with poly-crime activities, including human trafficking of exploited laborers, money laundering, and the use of hazardous, unregistered pesticides. The Department of Justice has previously charged seven Chinese nationals in connection with a multi-million dollar marijuana trafficking ring.
Wolf drew parallels to China's alleged role in exporting fentanyl and other synthetic narcotics to the United States. He stated that the intoxicating THC hemp market could become another avenue for Chinese-linked actors to profit by exploiting regulatory loopholes and weak enforcement, potentially harming American families. He also referenced bipartisan congressional action and presidential signature in the previous year to close loopholes for intoxicating THC hemp products, expressing concern that current efforts to weaken or delay these protections could further embolden foreign criminal actors.
Wolf's letter specifically requested that the committee investigate China's role in the THC hemp supply chain, including financing, chemical manufacturing, illegal cultivation, money laundering, and connections to criminal organizations operating within the United States. He urged lawmakers to address these issues before protections are fully implemented, to safeguard public health and law enforcement objectives.