Global cannabis industry eyes China for production and investment
- Chinese investors are beginning to warm to the new market, but a negative social stigma and a lack of education surrounding the drug are hurdles that need to be overcome
The global cannabis industry is targeting China for production and investment, while the country’s investors are warming up to the idea of placing their money in the fast-growing market.
Legal cannabis is a booming market worldwide, expected to be worth US$57 billion in 10 years, with legal adult recreational use accounting for 67 per cent, and medicinal marijuana taking up 33 per cent, according to Arcview Market Research and BDS Analytic.
“China for the last five years has had a lot of money invested in research and development without anybody’s knowledge or help,” said Glenn Davies, group CEO of CannAcubed, a Singapore-based cannabis and biotech company, in an interview at the Hong Kong Cannabis Investor Symposium on Thursday. “Before the US had been pushing through legislation, they have been doing underlying research and development on a government level into cannabis.”
Asia’s participation is predicted to rise as Thailand and Malaysia this year have been considering the legalisation of medical marijuana – the first countries in the region to do so.
While growth and consumption of marijuana remains illegal in China, the government has been investing in health-related cannabis known to help illnesses such as Parkinson’s, multiple sclerosis and cancer.
Chinese companies own 309 of all 606 cannabis-related patents worldwide. They relate to hemp – the legal variety for industrial use in things like clothing and food products – and cannabidiol. Also known as CBD, cannabidiol is a strand of the plant used for medicine without creating a high, but remains illegal to grow or consume in China.