This year has been one of exceptional growth for Chinese cannabis production. But as interest in the fast-growing market surges, government authorities are clamping down on its production.
Companies like Shanghai Shunho New Materials Technology Co and Zhejiang-based Conba Group have been moving into the space since the beginning of the year. And just this month, Huaren Pharmaceutical in Qingdao announced its collaboration with a biotechnology company in Yunnan Province to cultivate cannabis production in greenhouses — the joint venture (heh heh) could be the first of its kind.
According to Huaren Pharmaceutical (via Yicai) and others, stock market value jumped dramatically after the news came out. It’s not as scandalous as it sounds, though — the plant’s production is to be used solely in hemp-based fabrics and as seeds, and it’s still far from receiving approval for medical, food, or recreational use. Indeed, China has a strict zero tolerance policy on the latter.