Views: 0 Author: Site Editor Publish Time: 2026-06-11 Origin: Site
Cannabis is a plant with two sides: on the one hand, it can be used to make drugs, and on the other hand, it is one of the oldest agricultural crops. In 1985, China signed the "United Nations Convention on Psychotropic Substances," defining cannabis as an illegal substance and classifying it as a drug. However, as the world's most important producer of industrial hemp, China's primary use of cannabis is as a textile raw material, with cultivation mainly concentrated in Xinyang, Henan; Lu'an, Anhui; and Tai'an, Shandong. According to the "China Agricultural Statistical Yearbook" and statistics from the Food and Agriculture Organization of the United Nations, China already has the largest industrial hemp cultivation area in the world, accounting for about half of the global total. The report predicts that the Chinese industrial hemp market reached $1.1 billion in 2017 and is expected to reach $1.5 billion by 2020.
Currently, in regions like Yunnan, low-toxicity cannabis varieties are legally permitted for cultivation. Besides its use in textiles, it can be used as a biomaterial in various engineering projects, as biomass fuel, and for making various components, such as automotive brake pads. Cannabis seeds can also be used in health products, serving as an excellent source of health-promoting oils and protein. Medicinally, Traditional Chinese Medicine believes that cannabis can lubricate the intestines, relieve constipation, and treat cardiovascular diseases.
Yunnan Province became the first province in China to legislate on cannabis cultivation, a fact that dates back to 1991. Starting in 1991, to resolve the conflict between Yunnan's traditional cannabis cultivation practices and the toxicity of cannabis, a research team from the Yunnan Academy of Agricultural Sciences began screening local varieties with low toxicity levels, successfully developing one around 1998. In 2001, it passed variety evaluation and officially became a legal industrial hemp variety. Subsequently, on January 1, 2010, the "Regulations on the Licensing of Industrial Hemp Cultivation and Processing in Yunnan Province" officially came into effect, providing a legal basis for the large-scale cultivation of industrial hemp with a THC content of less than 0.3%.
Currently, cannabis research in my country mainly focuses on variety breeding, cultivation techniques, textiles, food, pharmaceuticals, and cannabis testing technologies. Because recreational cannabis with high THC content is not yet legal, more companies are concentrating on CBD extraction, processing, and medicinal applications. It is projected that China will not legalize recreational cannabis within the next five years; therefore, the cannabis industry market size in 2024, based solely on the value of industrial hemp, will reach $4.4 billion, making it the largest cannabis market in Asia.
Industrial hemp is a type of cannabis with a total tetrahydrocannabinol (THC) content of less than 0.3%. One of its applications is the extraction of cannabidiol (CBD), which has certain effects on conditions such as epilepsy.
Because the extraction of cannabidiol (CBD) can produce tetrahydrocannabinol (THC) levels exceeding 0.3%, according to relevant regulations in Yunnan Province, even when industrial hemp is used for CBD extraction, an application must be submitted in accordance with the regulations for controlled substances like cannabis. On March 27th of this year, the National Narcotics Control Commission Office issued a "Notice on Strengthening the Control of Industrial Hemp," reiterating that industrial hemp use is limited to fiber and seeds, requiring local narcotics control departments to strictly control the approval process for industrial hemp licenses, and stating that my country has not approved the use of industrial hemp for medical purposes or as a food additive.
The industrial hemp industry is a capital-intensive sector, requiring upfront investment in cultivation and factory construction before profitability can begin after harvesting and processing. By establishing a complete system encompassing cultivation, processing, testing, and sales, domestic companies can ensure product quality and improve operational efficiency. Furthermore, by expanding into overseas markets, companies can address the disadvantage of low seed content and participate in markets where CBD consumption applications are increasingly important. Additionally, domestic regulations regarding land conservation and pesticide residues in the industrial hemp sector are still under development, presenting potential value for the testing industry.
China has established a global dominance in industrial hemp , accounting for nearly half of the global supply, estimated to be worth $1.2 billion.
As China's National Narcotics Control Commission explicitly restricts the use of industrial hemp to fiber and seeds, and has not yet approved it for medical or food additive purposes, the country's industrial hemp industry is reaching a critical turning point. It is transitioning from extensive cultivation to refined, compliant deep processing. Although China accounts for nearly half of the global supply of industrial hemp, traditional extraction processes often struggle to balance high yield with regulatory compliance due to stringent approval procedures and variations in raw material characteristics.
Against this backdrop, a professional, compliant, and highly efficient CBD extraction production line has become the core engine for upstream and downstream enterprises to overcome policy barriers and achieve value leaps. Our CBD extraction production line deeply aligns with domestic regulatory requirements. Utilizing advanced precision extraction technologies such as low-temperature and supercritical fluid extraction, it maximizes the purity and efficacy of active ingredients like CBD while strictly ensuring that THC levels remain below the 0.3% safety threshold. This effectively resolves industry pain points such as high impurity content and difficult separation during flower and leaf processing, creating a seamless pathway for enterprises to transform legal raw materials into high-quality pharmaceutical-grade and daily chemical-grade end products. In the face of a projected $4.4 billion market, possessing a pharmaceutical-grade GMP-compliant CBD extraction production line is akin to holding the ultimate "ticket" to the future health and wellness industry.
