Chinese Investment in Illegal American Weed: A Growing Concern

Chinese Investment in Illegal American Weed: A Growing Concern

July 21, 2023

In recent times, there has been a rise in Chinese investors, owners, and workers participating in illegal marijuana production in certain states in the Western United States. This has become a new source of funding and labor for unlawful cannabis cultivation.

Law enforcement agencies recently discovered almost 9,000 pounds of cannabis, worth nearly $15 million, during a raid in Antioch, Calif., just before Christmas. The California Department of Cannabis Control believes that the four houses involved in this raid were connected to China.

Traditionally, Mexican cartels have been involved in importing, growing, and distributing illicit cannabis in the United States. However, Chinese investors and workers have become more prevalent in illegal marijuana grows in states like Oklahoma, California, and Oregon.

In Oklahoma, close to 3,000 out of nearly 7,000 licensed marijuana farms have been flagged for suspicious activity by law enforcement in the last year. Many of these farms are now being investigated for fraudulently obtaining their licenses and selling their products in the illicit market. The Oklahoma Bureau of Narcotics believes that around 2,000 of these farms have a Chinese connection, either through funding or supplying workers. Of the more than 800 farms shut down for illegal operations in the last two years, roughly 75 percent have links to China.

The increasing involvement of Chinese investors and funding in illegal marijuana cultivation has raised concerns among lawmakers and law enforcement. The potential influence of the Chinese Communist Party has also been a matter of attention.

While much remains unknown about Chinese-funded cannabis cultivation, it is clear that illicit cannabis production in the U.S. is booming. The majority of the $100 billion cannabis market in the U.S. is still illegal, with about two-thirds of the illicit weed being grown domestically.

Chinese workers are often recruited through Mandarin-language ads to work at illegal grows in Oklahoma, California, and other places. However, it's unclear how much involvement Chinese organized crime syndicates have in American cannabis cultivation.

Lawmakers are taking steps to address the issue. A bill called the PASS Act was introduced to limit the ability of investors or owners from China, Russia, North Korea, and Iran to acquire American agricultural land and agribusinesses. While enforcement of this legislation may be challenging, it is seen as a step towards curbing Chinese investment in illicit cannabis farming.

However, experts agree that much more research is needed to understand the extent of Chinese funding and involvement in the illegal cannabis industry. Answering crucial questions about funding sources and distribution channels will be crucial in determining how to deal with this growing issue.

The function of illegal cannabis grows may pose a challenge for the PASS Act approach, as many of them are not on agricultural land. Often, these grows are hidden in suburban homes or other buildings, and the true funding source remains elusive.

In conclusion, the increasing Chinese investment in illegal American weed is a matter of concern for law enforcement and lawmakers. Understanding the full extent of Chinese involvement and its implications will be vital in addressing this issue effectively.

Source



Leave a comment

Comments will be approved before showing up.

Get Your Weekly Dose of Green

Subscribe for Exclusive Cannabis News, Weekly Deals, and the Industry's Latest Tech and Innovations!