An association comprising 12 Chinese hemp firms was launched in Yunnan in the wake of hemp interests. Yunnan is experiencing rapid industrial growth with extensive research and development efforts furthering China’s reputation as a global hemp and CBD market.
According to a recent statement, the new union named the Yunnan Industrial Hemp Association (YIHA) will focus on advancing new hemp strains, innovative CBD extraction technologies, and assisting in setting industry standards.
The association said that its primary objective is to fortify the hemp industry in the southwestern province to stay ahead of the rising global competition. YIHA intends to achieve its goals by developing industry policy and self-regulation as well as providing a platform for the exchange of thoughts and expertise among members.
The 12 companies are not the only members of the new association. Forty-seven more companies embraced the association’s memberships during YIFA inception marked by an inaugural ceremony in Kunming, Yunnan’s capital.
Yunnan and Heilongjiang are the only provinces in China with established legal frameworks for industrial hemp cultivation and processing. The two have a strong concentration of hemp infrastructure, with an increasing number of hemp businesses reportedly active in Yunnan.
CBD for wellness and beauty are the only applications authorized in China and are subjected to strict control. Even so, Yunnan and Heilongjiang are the only provinces authorized to cultivate and process hemp, with the majority of hemp companies being giant state-run industrial corporations enjoying government support.
Yunnan has quickly become a key CBD supplier for international markets, with six firms authorized to extract and process CBD. Over 60 other firms are reported to have received pre-approval for CBD production across the rest of the country.
According to industry sources, a small fraction of China’s CBD production is sold domestically, with its bulk exported to the U.S and the rest of the world.