Former DHS Chief Warns Chinese Criminal Groups Are Targeting America’s THC Hemp Industry

Chad Wolf, Former Acting Secretary, U.S. Department of Homeland Security (2019-2020), and Homeland Security and Immigration Chair America First Policy, speaking at a hearing of the Senate Budget Committee hearing about sanctuary cities at the U.S. Capitol in Washington, D.C. (Photo: Michael Brochstein/Sipa USA via AP Images)

Former acting Homeland Security Secretary Chad Wolf is calling on Congress to investigate what he describes as the growing influence of Chinese-linked criminal organizations in America’s hemp-derived THC industry.

In a letter sent Tuesday to leaders of the House Select Committee on the Chinese Communist Party, Wolf urged lawmakers to examine what he called 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, Fox News reported.

The letter was addressed to committee Chairman Rep. John Moolenaar, R-Mich., and Ranking Member Rep. Ro Khanna, D-Calif.

Wolf argued that the hemp market has expanded well beyond Congress’s original intent when it legalized industrial hemp through the 2018 Farm Bill, creating what he described as an underregulated market for intoxicating hemp-derived THC products.

“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.

He claimed many hemp-derived THC products—including gummies, beverages and vape products—are marketed in ways that appeal to children and lack consistent age restrictions, labeling standards and safety requirements.

Wolf also pointed to the White House’s 2026 National Drug Control Strategy, which warns that transnational criminal organizations, particularly those with ties to China, have expanded their involvement in illegal marijuana cultivation in the United States. The strategy cites Oklahoma, where law enforcement officials estimate Chinese criminal organizations operate a majority of illegal marijuana and hemp farms.

According to the strategy, those operations have also been linked to alleged human trafficking, money laundering and the use of unregistered pesticides.

In his letter, Wolf argued that Congress should also investigate whether Chinese-linked organizations have become involved in the intoxicating hemp-derived THC supply chain, including financing, chemical manufacturing, cultivation and money laundering.

The request comes as lawmakers continue debating federal regulation of intoxicating hemp-derived cannabinoids. Congress approved legislation last year intended to close loopholes involving intoxicating THC hemp products, though implementation and additional legislative proposals remain under discussion.

Wolf warned that efforts to weaken or delay those restrictions could create additional opportunities for criminal organizations to exploit the U.S. hemp market.

The House Select Committee has not yet announced whether it plans to open an investigation in response to Wolf’s request.