Risk-taking in Chinese Organized Drug Trafficking: An Analysis of Financial Interactions

• In Event: Trafficking in Organized Crime

Abstract

Drawing on court data, this study explores the risk-taking decisions of both sellers and buyers from the perspective of financial interactions. The study categorises business-level risks based on the criminal sentencing guidelines of Chinese Criminal Law, and further classifies individual risks based on various payment and repayment methods. The finding suggests that buyers consistently take higher risks in illegal drug transactions, and these risks are linked to the payment methods. Additionally, the study indicates that sellers occupy a dominant position in the transactions, while buyers are in more passive roles. Furthermore, the study incorporates Guanxi theory, which suggests that interpersonal relationships (guanxi) reduce buyers’ risks. However, when considering joint risk-taking by both buyers and sellers, guanxi does not emerge as a crucial factor.

Author

• Shujing Shi, University of Cambridge