CBD: a controversial ban
The Chinese government is planning a new law to ban the use of cannabis-related ingredients in cosmetics. A statement issued by China's National Institute of Food and Drug Control has set out rules in this direction. This law would apply to cannabis fruit, seed oil, leaf extract and cannabidiol (CBD).
This new legislation would not necessarily be welcomed, as it would challenge a 2015 ordinance that allows the use of these ingredients in cosmetics for the Chinese market.
As a reminder, cosmetics containing CBD from hemp, as well as products containing less than 0.3% THC are currently allowed on the Chinese market. Some studies and consumer tests show the benefits of these ingredients on the skin. In cosmetics, hemp oil, hemp seeds and CBD are known to have benefits such as hydration and the ability to reduce inflammation. Chinese consumers also remain increasingly interested in international brands and can be influenced by trends.
Opinions on this new law are therefore divided. The public has until 19th April to give their opinion and allow the government to make the appropriate decision.
Important consequences for local and international companies
If the new law takes effect, it may affect the local market and international players. Although there are also other ingredients than CBD with similar properties, the removal of cannabis-related ingredients could have strong implications for the Chinese beauty industry and market.
Chinese consumers have had access to these types of products since 2015 thanks to new brands, but mostly through cross-border e-commerce platforms. With this law, cannabis-related ingredients as well as CBD would no longer be used in China. It is therefore highly likely that the latter will also be banned from sale in the products of these e-commerce platforms.
Indeed, the e-commerce platform Tmall Global had published the list of prohibited ingredients for the manufacture of cosmetics based on the official list of prohibited ingredients by the "Safety and Technical Standard for Cosmetics" of 2015. This means that once the ingredients are listed and banned by local law, there is a good chance that the major e-commerce platforms will also ban the ingredients contained in the list, as could be those related to CBD.
Following this approach, international companies will also no longer be able to sell their products if they contain these ingredients on the Chinese market. As China is a country with one of the highest demands and a growing interest in the West, this may have strong repercussions for cosmetics exporters in China.
Despite global concerns about CBD, China remains the world's largest producer of hemp. Production is allowed in three provinces: Yunnan, Heilongjiang and Jilin. Most of the hemp harvested is destined for export. About half of the world's hemp resources in 2019 came from these three regions. China's hemp is mainly used in electronic cigarettes, some medicines, animal feed but mostly in cosmetics.
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