Former acting DHS secretary warns Chinese criminal organizations are infiltrating America's hemp industry

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" in the U.S., which he says are "putting our youth and adults at risk." 

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

"What began as a narrowly tailored effort to legalize industrial hemp and non-intoxicating cannabidiol (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. They lack acceptable age restrictions, labeling requirements and safety standards." 

Wolf cited a warning from the White House’s 2026 National Drug Control Strategy, which described how "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, particularly those with ties to China."

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The national flags of China and the United States are seen flying outside a commercial building on March 17, 2026 in Hong Kong, China. On the right, a scientist is seen inspecting CBD oil extracted from a cannabis plant. (Cheng Xin/Getty Images; iStock)

"These groups systematically exploit states where marijuana has been legalized under state law, leveraging these markets and lax regulations to establish massive, unlicensed cultivation operations. A stark illustration of this is Oklahoma, where law enforcement estimates that Chinese criminal groups run more than 80% of the state's thousands of marijuana and hemp farms," the National Drug Control Strategy document says. 

"These operations are not just agricultural; they are hubs of poly-crime involving human trafficking of exploited laborers, sophisticated money laundering, and the use of dangerous, unregistered pesticides that threaten public health and the environment," it adds. 

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THC products are displayed at Bahama Mama on Montrose Boulevard in Houston on May 29, 2025. (Raquel Natalicchio/Houston Chronicle)

Wolf referenced how China "has been linked to the export of fentanyl, synthetic narcotics and illicit supply chain materials that have devastated American communities" and that "the intoxicating THC hemp market now risks becoming another avenue through which Chinese-linked actors exploit regulatory loopholes and weak enforcement mechanisms to profit at the expense of the health and safety of the American people."

"Congress acted last year, with bipartisan support and President Trump’s signature, to close loopholes involving intoxicating THC hemp products and restore the original intent of federal hemp legislation," he said in the letter. "However, efforts are now underway to weaken, delay or roll back those protections before they fully take effect. This would not only undermine public health and law enforcement objectives, but could further embolden foreign criminal actors seeking to exploit the American marketplace and harm American families." 

The Warren Police Department in Michigan warned parents last year ahead of Halloween about THC-laced candies packaged like traditional treats. (Warren Police Department)

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He concluded the 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 the array of criminal organizations operating within the United States."