Global Ganja Report

In a fast and furious exchange of retaliatory tariffs, Donald Trump and Xi Jinping appear to have initiated a trade war this week. If Trump isn't careful, he could risk undermining the very domestic economic buoyancy that has helped sustain his popularity among his base. And the cannabis sector is particularly vulnerable, according to industry insiders.

California's Gov. Jerry Brown has unveiled a special investigative force to go after unregistered cannabis growers. This is certainly bad news for the many growers who have failed to register because they consider the taxes and regulations burdensome. In the face of disappointing tax revenues from legal cannabis, is the state using the stick of enforcement rather than the carrot of lower taxes and more favorable regulations to bring more growers in from the shadows?

The seizure by federal agents of some 100 homes around Northern California supposedly used in grow operations financed by criminal networks based in China points to ongoing dilemmas in the state's contraband cannabis economy—which persists even in the wake of legalization.

In a lugubrious public spectacle, a Chinese court sentenced 10 people to death before a crowd of thousands at a stadium in the southern city of Lufeng Dec. 15. Of course, most were convicted of drug-related crimes, According to a harrowing report in South China Morning Post, they were summarily tried on the spot, and immediately taken away for execution. The grim ceremony kicked off a new anti-drug campaign in the People's Republic of China.

Is it really possible that Philippine President Rodirgo Duterte—who has unleashed a "war on drugs" that has now reached the point of mass murder, and used charges of narco-corruption to lock up his political opponents—is himself mixed up in the drug trade? With the Philippine Senate now launching multiple investigations into the drug-related violence, charges of involvement in the narco trade have actually reached some of Duterte's closest family members.

Cannabis seizures are rapidly escalating in Hong Kong—whether due to greater quantities on the market or stepped-up enforcement, or both. The city's South China Morning Post reports June 19 on a haul of 35 kilos in 136 baggies ready for sale, uncovered in a vehicle during a police raid on a car park. Three were arrested. Police estimated the street value of the load at HK$10 million (about US$1.3 million). As recently as May 27, the SCMP reported a police raid on an industrial building in the city's Tai Po district that netted 110 kilos, worth HK$19 million. (Obviously, the math is not adding up here, raising questions about how the Hong Kong cops arrive at their estimates.)

The latest annual Amnesty International report on global use of the death penalty actually has some heartening news. For the first time since 2006, the United States did not make the top five executioners in 2016—falling to seventh, behind Egypt. The 20 executions in the US constituted the lowest number in the country since 1991. Most executions last year took place in China, Iran, Saudi Arabia, Iraq and Pakistan—in that order. And after three years in a row of global executions surging, they appear to have dropped off in 2016. Not including data from China, Amnesty counts 1,032 executions throughout the world in 2016—more than 600 fewer than in 2015.

China is to get its first company dedicated to research, development and marketing of medicinal products based on cannabidiol, or CBD. The firm, dubbed XiBiDi Biotechnology Co, is to operate out of Pudong Technology Park, part of the Shanghai Pilot Free-Trade Zone. It will initially offer hemp-derived CBD oil, as well as hemp-based foods and beverages, according to a press release from ChineseInvestors.com, or CIIX. The Chinese character "XiBiDi" is homophonic to "CBD" in English.