China invests in cannabis in the United States

China is setting its sights on the U.S. cannabis market, particularly CBD, a legal component of cannabis in both China and the United States.

Paving the Way for Chinese Investors

On December 5, 2016, the U.S. stock market analysis website chineseinvestors.com has entered into an investment agreement with Shenzhen Yuanrong PE Capital. On March 20, Chineseinvestors announced the launch of a pharmaceutical company in the Shanghai Free Trade Zone to 1.4 million dollars. Named XiBiDi (the English phonetic pronunciation of CBD), this laboratory is expected to produce CBD-based treatments and cosmetics.

On its website, ChineseInvestor explains how to invest in research on Alzheimer's disease and epilepsy over a period of two to four years, all as part of the Innovative Drug Development initiative launched by the Chinese government.

The company’s CEO, Warren Wang, stated, «Eventually, our company will acquire or merge with CBD research and development companies based in China.»  He added in his press release, «Furthermore, being located in the free trade zone is a significant advantage for import and export. The treatments developed will thus be distributed in China and the United States.».

Already present in Colorado

Chineseinvestor is a stock market analysis website published in Chinese and English. Chinese investors follow news about U.S. markets through this platform. According to Warren Wang, «Chinese investors want to participate in the international cannabis market; they lacked information, so we provide it to them.»  Above all, it gives them the opportunity to invest in a Chinese cannabis company with a strong presence in the U.S.

A smart, large-scale investment that masks other smaller but equally smart investments in terms of synergies. Chinesinvestor launched the website ChineseCBDoil.com in January 2017. This site delivers CBD-containing products to all countries where it is legal. In terms of brick-and-mortar operations, investors are expected to open specialty stores in U.S. cities with large Chinese communities.

According to the PR Newswire, Chineseinvestor.com has reportedly already invested in the Colorado-based company Medecin Man. This dispensary is one of the largest in the state and sells both recreational and medical cannabis. That’s a term Chineseinvestors prefers to avoid in its press releases. «Hemp derivatives» apparently sounds better to investors.