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Policy & Law

Former Acting DHS Secretary Warns Chinese Criminal Organizations Are Infiltrating America's Hemp Industry

Chad Wolf's letter to the bipartisan House China Committee cites White House drug strategy warning that transnational criminal groups have 'industrialized' marijuana trade.

Former Acting — Oregon Historical Quarterly
Photo: Oregon Historical Society (Public domain) via Wikimedia Commons
⚡ The Bottom Line

Wolf's letter represents a formal request from a former senior homeland security official for congressional investigation into alleged foreign criminal involvement in the U.S. hemp and marijuana industries. The bipartisan composition of the House China Committee receiving the letter, with leadership shared between Republican Moolenaar and Democrat Khanna, suggests potential for joint action. Th...

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Former acting Homeland Security Secretary Chad Wolf sent a letter to House lawmakers Tuesday urging them to investigate the growing role that Chinese-linked actors and foreign criminal organizations are playing in the proliferation of hemp-derived tetrahydrocannabinol (THC) products and illegal marijuana operations across the United States.

The message addressed Rep. John Moolenaar, R-Mich., and Rep. Ro Khanna, D-Calif., who serve as chairman and ranking member respectively of the House Select Committee on the Chinese Communist Party, states that beyond serious public health implications, there is mounting evidence this issue presents a significant national security concern.

Wolf's letter cites a warning from the White House's 2026 National Drug Control Strategy, which describes how the marijuana trade in the United States has been 'co-opted and industrialized by sophisticated, transnational criminal organizations, particularly those with ties to China.'

"What began as a narrowly tailored effort to legalize industrial hemp and non-intoxicating CBD products has evolved into a dangerous and unregulated market for high-potency THC hemp products that are being sold across the country with little to no oversight," Wolf wrote. "These products are frequently marketed as gummies, candies, beverages and vapes, often packaged and promoted in ways that appeal to children."

What the Left Is Saying

Rep. Ro Khanna, D-Calif., who co-received Wolf's letter as ranking member of the House Select Committee on the Chinese Communist Party, has not issued a public statement responding to the correspondence. The California Democrat, who represents Silicon Valley and has previously advocated for marijuana policy reforms, has historically supported regulations that protect public health while allowing legal cannabis industries to operate.

Progressive advocates have expressed caution about using national security language around drug policy issues, arguing that such framing can sometimes be used to justify increased law enforcement that disproportionately impacts communities of color. Criminal justice reform groups note that any response must balance addressing foreign criminal activity with protecting legitimate businesses operating within state-legal frameworks.

Some Democratic voices have pointed out that Congress acted with bipartisan support in 2025, when President Trump signed legislation aimed at closing loopholes involving intoxicating THC hemp products and restoring the original intent of federal hemp legislation. These lawmakers emphasize that the current concern is about enforcement of existing law, not creating new criminal penalties.

What the Right Is Saying

Wolf, who served as acting DHS secretary during the final year of Trump's first term, argued in his letter that foreign criminal actors are exploiting regulatory loopholes and weak enforcement mechanisms to profit at the expense of American health and safety. He wrote that China has been linked to exports of fentanyl, synthetic narcotics and illicit supply chain materials that have devastated American communities.

The White House National Drug Control Strategy cited by Wolf states that Chinese criminal groups run an estimated 80% or more of Oklahoma's thousands of marijuana and hemp farms, according to law enforcement estimates. The strategy document describes these operations as "not just agricultural" but "hubs of poly-crime involving human trafficking of exploited laborers, sophisticated money laundering, and the use of dangerous, unregistered pesticides."

Rep. John Moolenaar, R-Mich., who chairs the bipartisan China Committee alongside Khanna, has indicated he will pursue the investigation requested by Wolf. Republican lawmakers have emphasized that foreign criminal organizations should not be permitted to exploit American markets and regulatory gaps.

Wolf concluded his letter by asking the committee to investigate China's involvement in the intoxicating THC hemp supply chain, including financing, chemical manufacturing, illegal cultivation operations, money laundering activity and ties to criminal organizations operating within the United States.

What the Numbers Show

Oklahoma law enforcement estimates that Chinese criminal groups operate more than 80% of the state's thousands of marijuana and hemp farms, according to the White House National Drug Control Strategy document cited by Wolf.

The 2026 National Drug Control Strategy characterizes the current situation as one where "the marijuana trade in the United States is no longer a scattered, low-level problem; it has been co-opted and industrialized by sophisticated, transnational criminal organizations."

Congress passed legislation in 2025 with bipartisan support that was signed into law by President Trump. That measure aimed to close regulatory loopholes involving intoxicating THC hemp products.

The federal Farm Bill of 2018 originally legalized industrial hemp and non-intoxicating CBD products as part of an effort to support American farmers.

The Bottom Line

Wolf's letter represents a formal request from a former senior homeland security official for congressional investigation into alleged foreign criminal involvement in the U.S. hemp and marijuana industries. The bipartisan composition of the House China Committee receiving the letter, with leadership shared between Republican Moolenaar and Democrat Khanna, suggests potential for joint action.

The 2026 National Drug Control Strategy document cited in Wolf's letter indicates this issue has risen to the level of White House attention, framing it as both a public health and national security concern. Whether Congress pursues the specific investigation Wolf requested remains to be seen.

Critics will watch whether any congressional response focuses narrowly on foreign criminal activity or expands into broader restrictions that could affect legal state-licensed marijuana businesses. The 2025 legislation closing THC loopholes is still being implemented, and its effectiveness in addressing the concerns raised by Wolf will likely become a subject of ongoing debate.

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