China on board with hemp, but not marijuana

• Aiming to be a player in the global cannabidiol (CBD) market, China is moving quickly to ramp up production of cannabis, mainly hemp since it has been cultivated there for thousands of years.
• The vast majority of production will be exported, however, due to strict regulations. For example, plants are not allowed to contain more than 0.3% THC, the psychoactive component of weed. CBD extraction facilities are outfitted with security cameras and are monitored by local police.
• The production and availability of marijuana is a non-starter since authorities consider it a dangerous narcotic. Trafficking in THC can lead to a life sentence in prison or even the death penalty.
• According the the Hemp Business Journal, China accounted for ~11% of the $800M global CBD market in 2018, trailing Europe and the U.S.
• Selected tickers: TLRY, ACB, CRON, CGC, APHA, HMLSF