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CBD (cannabidiol), a substance extracted from cannabis has been attracting considerable attention from multinational food enterprises due to its potential applications in foods. In 2018 Coca-Cola declared that it was considering using CBD in a functional health beverage and would cooperate with Aurora Cannabis Inc. (Canadian cannabis manufacturer) to develop a new cannabis beverage.
Molson Coors, the second largest beer company in North America, also announced it was collaborating with Canadian cannabis manufacturer Hydropothecary Corp. to develop a non-alcoholic cannabis beverage [1]. Bright Field Group, a leading predictive analytics and market research firm for legal Cannabis industries, anticipates that the CBD industry will hit 5.7 billion US dollar in 2019, and is expected to surge to 18.1 billion US dollar by 2021.
Since 2017 multiple countries have legalized the use of medical marijuana and CBD. Australia permitted the sale of food containing CBD in Nov. 2017. By the end of 2018, 33 states in America had already approved the use of medical marijuana and CBD. Korea and Thailand have also greenlighted the use of cannabis in medical applications. So how does China regulate cannabis and CBD and do current policies support the growth of this fledgling market.
What is CBD?
CBD is a cannabinoid, a class of chemicals found in the body and in certain plants which when ingested or applied to mucosal surfaces act on the body’s cannabinoid receptors (the most abundant receptors in the human body) and produce a range of effects. There are 2 broad classes of cannabinoid receptors which when stimulated by both endogenous (naturally produced by the human body) or exogenous (sourced from outside the body) modulate the activities of the nervous system and other physiological processes in a dose dependent manner. CBD is found in cannabis to varying degrees depending on the strain of the plant. Unlike THC, CBD is not psychoactive, although the brain itself has abundant CB1 receptors.
According to a report from the World Health Organization, “In humans, CBD exhibits no effects indicative of any abuse or dependence potential” [2]. On the contrary, the scientific research showcase that CBD could have following positive functions on human being:
| Functions | Application |
| Treat anxiety, insomnia, or sleep disorders | CBD can aid in sleep disorders, anxiety and other disorders. |
| Pain relief | CBD could help modulate the inflammatory response and has positive impact on pain |
| Neuroprotection | CBD can treat intractable epilepsy and decrease seizure frequency , and it also has positive effect on Alzheimer's disease and Parkinsonism |
| Anti-tumor | CBD has shown promise in the inhibition of neoplastic proliferation, metastasis, especially for glioma, leukemia and prostatic cancer |
| Metabolism or immune regulation | CBD improves metabolism and immune functions through modulation of the inflammatory pathway. It has somewhat positive effects on early diabetes and rheumatoid arthritis |
| Others | CBD has anti-microbial and hepatoprotective properties |
Another significant component contained in cannabis THC (tetrahydrocannabinol) is psychoactive and is considered as narcotic by UN Convention and is subject to strict limitation and regulation. With reference to the European (Agriculture) Commission standard, cannabis can be classified into the following 3 types based on the THC level:
| THC level | Cannabis type | Features |
| < 0.3% | Hemp | Non-psychoactive |
| > 0.5% | Marijuana | Obviously psychoactive and abusive |
| 0.3%-0.5% | Fall in between hemp and Marijuana, | Low psychoactive, intended for drug use |
Most of the CBD legally sold on the market is sourced from hemp.
Regulatory requirements in China
Hemp planting
China has an extremely stringent “zero tolerance” drug control policy. Hemp planting and all subsequent processing requires permission from the local Ministry of Public Security. Currently the growth of hemp is legal only in Yunnan and Heilongjiang province, and Jilin is expected to be the third one according to its local legislation program.
| Year | Province | Regulation |
| 2010 | Yunnan | “Provisions on Industrial Hemp Planting and Processing Permission in Yunnan Province” [3] |
| 2017 | Heilongjiang | Heilongjiang revise “Heilongjiang Province anti-Drug Regulation” [4], allowing the growth of hemp and conducting special supervision on its planting, processing and selling. |
| 2018 | Jilin | Jilin is proposed to revise “Jilin Province anti-Drug Regulation” [5], and the amendment is awaiting the final decision. |
China forbids the use of CBD in food
At present, CBD is prohibited from being used in any food products in China. In Mar. 2019, National Narcotics Control Committee unveiled a notification regarding strengthening the control over industrial hemp [6]. Currently the use of industrial hemp is limited to fiber and seed, and the document clarifies that China has not yet permitted hemp to be applied in the pharmaceutical or food sector.
Just a few enterprises in China are capable of CBD extraction, including Hempsoul (its parent company HMI group is the only company legally allowed to hemp for domestic use in China), Hankang, Hempson, BiouNio, Eshanwuxing etc. As CBD is illegal in China, products are targeted at overseas market.
Although the use of CBD in food is strictly forbidden in China, fructus cannabis (dried and mature seed of Cannabis) and its oil product is permitted. According to MOH announcement issued in 2002 [7], fructus cannabis was listed as substance used as both food and traditional Chinese medicine, indicating that fructus cannabis and its oil product could be added to common food products as well as registered health food.
The labeling obligation when fructus cannabis (oil) is used
As fructus cannabis and fructus cannabis oil are regarded as normal food ingredients, there is no special rule when they are applied in either common prepackaged food or health food. With reference to item 4.1.4.1 in GB 7718-2011, the food labeling or product information can indicate and underscore that fructus cannabis (oil) is added, and its concentration can also be labelled.
Theoretically, CBD content can be indicated on the package as it is naturally contained in fructus cannabis. Furthermore, it could even serve as the functional component of health food if it meets the corresponding requirements laid out in the health food standard. However, the concentration of CBD in fructus cannabis is low and therefore this strategy has not been explored yet.
Functional claims cannot be used on general foods containing fructus cannabis (oil). Functional foods, known as health foods in China, are permitted to use functional claims. Generally speaking, the claims used on health foods containing fructus cannabis are related to digestive health and amelioration of constipation.
Future trend of CBD food in China
China is quite conservative about new food ingredients and new ingredients will not be permitted unless there is an extensively proven safety profile. The application of CBD in food & beverage is just beginning in overseas countries, and there is still a long way to go for CBD legalization in China’s food industry.
During the “Two Sessions” of 2019, Hu Jiqiang, chairman of Conba, suggested that China should remove the ban and increase hemp application in medicine, health food, food and daily chemical areas.
Although there is a global trend towards acceptance of CBD with 41 countries permitting the use of cannabis in medicine and over 50 countries legalizing the use of CBD, China has gone the opposite direction [8]. China announced it would further strengthen the supervision of industrial hemp and optimize management, suggesting that CBD will not be accepted anytime soon.
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