Lack of information for several actors
The announcement by the National Medical Products Association (NMPA) took effect on 28th May 2021. The prohibited ingredients are, as announced in the Regulatory Notice No. 74 2021: cannabidiol, cannabis sativa fruit, cannabis sativa oil and cannabis sativa leaf extract.
The Chinese government has not yet clarified all the details behind the ban. Some changes and subtleties may still be revealed in the coming months. For example, cannabidiol has been added to the new Inventory of Prohibited Ingredients in Cosmetics, but no details have been given for existing stocks. Companies do not yet know whether they are to be disposed of or can no longer be sold. The issue of exports was also not raised by the NMPA.
Thinking about CBD and its use, for example in cosmetics, started many years ago around the world. Some countries have decided to restrict its use to certain parts and varieties of the plant. As China has a firm policy on drugs, this decision does not come as a complete surprise to the cosmetics industry.
Also, China is one of the leading producers of cannabis and hemp, producing about half of the world's hemp. However, hemp producers are not mentioned in the NMPA statement, as it only concerns cosmetics. It is not yet known what decision will be taken for them and their production.
Perception of cosmetic regulatory changes in China
China has been revising its cosmetic regulations for several years. In particular, the 1st of May 2021 has seen several major changes, such as the implementation of the Inventory of Existing Cosmetic Ingredients (IECIC), which you can read about in this article.
All these changes have surely led to the decision to ban CBD in cosmetics. Also, it is possible that the Chinese government made this decision to prevent lax attitudes towards drugs among young Chinese consumers, and that the largely unregulated industry could lead to poor testing and control of THC.
The companies affected by the new ban are rather mixed. Some see better control as a sign of clearer and more open regulation towards CBD.
Others consider that Chinese consumers are increasingly demanding and looking for natural ingredients. The virtues of CBD in cosmetics are there: it is hydrating, soothing and protective. Consumer appeal, followed by trends from the West, are making cannabidiol a key ingredient and, while China remains committed to banning the use of cannabis-related ingredients, it is also turning down a strong economic opportunity. The companies concerned will locate in other countries, making it easier for them to gain access to the global market.
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