Mechanics of the Maze: Deciphering the Financial Flow of Organised Drug Trafficking in China

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Abstract

Financial pursuits have been considered one of the primary drivers of illegal businesses, playing a crucial role in organised drug trafficking activities. However, this aspect has seldom been analysed in the context of China. This study investigates the financial flows and collaborative dynamics within Chinese organised drug trafficking groups. By extracting data from court files, the research examines payment strategies, drug pricing, and price dispersion across various stages of trafficking activities. Despite the rapid development of online payment and mobile phone applications, bank transfers and cash transactions still account for a significant portion of payments in the illegal drug trade. While drug prices vary at different stages, discounts are typically negotiable for repeat customers and bulk purchases, though these must be considered in light of purity. Additionally, the study explores the roles of various group members and the distribution of revenues within the business. It is noted that most offenders face financial difficulties, with start-up funds can be borrowed from individuals not directly involved in the trafficking activities.

Author

• Shujing Shi, University of Cambridge