The View | Can China seize a US$4.4 billion opportunity in the medical cannabis market and capitalise on growing global demand?

Two years ago, this newspaper noted how China was quietly, albeit rapidly, developing into a “cannabis superpower”. Of course, at first glance, this seemed like a surprising prediction. China shows no signs of mirroring the sweeping adult-use legislation altering cannabis laws across the globe.  Nor does it look likely to follow in the path of Thailand, South Korea or Malaysia in legalising the research or use of medical cannabis products.

The Asian Cannabis Report, published recently by Prohibition Partners, highlights the US$4.4 billion opportunity available to China by 2024 should it choose to pursue a medical cannabis market and capitalise on its favourable climate, industrial capability, heritage in hemp cultivation and the sheer size of its population. The report found that, just as China has become the workshop for the Western world’s demand for consumer goods, it is primed to capitalise on the growing global demand for cannabidiol (CBD), a non-psychoactive ingredient of cannabis, and hemp.

Archaeological studies suggest cannabis is a plant that is native to China. Despite this, cannabis cultivation in China is currently limited to the Yunnan and Heilongjiang provinces – the only two of China’s 34 provincial-level administrative divisions licensed to grow the plant – due to their favourable climates and history of cultivation respectively. The restrictions in place have done nothing to negate the growing interest from foreign and domestic businesses.