China may ban CBD in cosmetics

China's National Institute of Food and Drug Safety is proposing to ban the CBD, cannabis flowers, leaf extracts, and seed oils in cosmetics. This proposal has sent shivers down the spines of manufacturers in this country, which is the world’s second-largest market for beauty products. In China, cosmetics are the only products in which cannabidiol is permitted. But perhaps not for much longer.

«In accordance with the requirements of the national drug control policy, it is proposed that […] cannabidiol and other raw materials be added to the list of prohibited ingredients in cosmetics.», the institute says. Industry representatives, experts, and the public have until April 19 to submit their comments. Since the institute reports directly to the Chinese central government, it is unclear whether all comments will be taken into account.

China is, however, a major player in the hemp industry—the plant from which CBD is derived. According to the U.S. Department of Agriculture, the country produced more than half of the world’s hemp in 2019. But since the finished product is not permitted on the Chinese market, it is exported primarily to Europe. For its part, the European Union has just officially recognize the CBD as an antioxidant, sebum-regulating agent, moisturizer, and skin protector.

CBD was legalized in 2015

In the world’s second-largest economy, CBD in cosmetics has been permitted since 2015. Although this market is still in its infancy, it showed great promise. In 2019, the Chinese regulatory agency received 433 applications for approval of CBD cosmetics. The following year, that number rose to 880—twice as many—according to online media Jing Daily. Chinese brands—Sempcare, 2XY, Cannafever, and others—had thus entered this market.

But the country is about to make a 180-degree turn and reverse course. And the hemp industry is in a slump. The stock price of Best Health International Industry Group fell by 15 %, and that of Baiyao, by nearly 7 %, note Hemp Industry Daily. «If the ban takes effect, the domestic market will be closed", a Chinese business leader warns in the Global Times, a Chinese newspaper with close ties to the government. »So exporting will be our only means of survival!"

In Asia, CBD is used less—and, more importantly, is less widely permitted—than in most Western countries. While cannabidiol is banned in China, residents of the Middle Kingdom can seek refuge in Thailand. The country itself is an oasis where the substance is authorized and encouraged by the government. The idea is actually to to turn Bangkok into the «Amsterdam of Asia».