Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Tuesday, Dec 10, 2024

CBD ban foreshadows stricter Hong Kong post-Covid

CBD ban foreshadows stricter Hong Kong post-Covid

In under two years, Hong Kong went from one of the most promising markets in Asia for CBD products to putting face creams containing the cannabis-derived ingredient on par with heroin or methamphetamine.
A new law that criminalizes the possession and consumption of cannabidiol, the non-psychoactive ingredient in cannabis plants, came into effect Feb. 1, and anyone found guilty of importing, exporting or manufacturing it faces up to life in jail and a fine of HK$5 million (US$637,000). Previously the government had limited the ban to cannabis and its psychoactive derivative THC, allowing a nascent CBD industry to grow.

Hong Kong’s zero-tolerance pivot comes right as the government launches its “Hello Hong Kong” campaign, aimed at boosting its image among foreign investors and tourists after years of Covid isolation. Yet as the city counts on an influx of visitors to revive its economy, which contracted 3.5 percent last year, the CBD ban potentially marks a more controlled era for the financial hub — long-known for a freewheeling social scene that set it apart from rival Singapore — after the National Security Law the put an end to a swathe of civil liberties.

While carrying CBD-infused oil for back pain is not the same as the right to gather in protest, a shroud of increased policing and punishment throughout Hong Kong society unites them.

Hong Kong’s government has defended the change in policy by arguing that CBD could decompose or be converted into THC. But some in the industry believe that the city’s decision was also made to bring it closer to drug regulation in mainland China, which banned the use of CBD in all cosmetics in 2021.

“Let’s say you come from a legal hemp country, Europe, America, Australia even, and you’re carrying a hemp protein bar that is illegal,” said Saul Kaye, founder of Israel-based cannabis startup accelerator iCAN. “That could get the person into a lot of trouble and the person might not even realize because it’s a legal product in their country.”

Hong Kong authorities made their first CBD arrest last month in connection with an air parcel from Denmark labeled as skin oil.

With tourists prone to running afoul of the law, foreign governments are on high alert. Thailand’s foreign ministry last week issued a warning against bringing CBD items into Hong Kong. The US State Department urged its citizens to review their luggage to ensure items — “including oils, lotions, supplements, and cosmetics” — do not contain the ingredient. Animated videos on inbound flights to the city warn visitors of the consequences of carrying CBD products.

Hong Kong’s total ban comes as CBD rapidly gains popularity worldwide for its calming and analgesic properties. Even some countries in Asia, a region known for its zero-tolerance stance on drugs, are shifting their attitudes. South Korea legalized medical marijuana in 2018, but under strict conditions, while Japan is eyeing similar plans for patients with incurable conditions.

The biggest change came in Thailand, which last year became the first Asian nation to decriminalize cannabis. Though political and legal uncertainties are still clouding the industry’s future there, cannabis businesses have already sprung up all around the country, and foreigners are flocking there to visit dispensaries and buy products like edibles and massage oils.

To be sure, Hong Kong is not the only place in the region to outlaw CBD, while drug trafficking in countries like Singapore and Malaysia are punishable by death. And there's some evidence from the US that legalizing CBD could be a slippery slope. The easy availability there and the patchwork of state-by-state laws allowing THC has led to an explosion of cheap imitators that are made from hemp and CBD with unknown health consequences.

Still, prior to the ban, the city had seemed at least open to the industry's financial opportunities. In 2018, a function room at the seafront W Hotel in West Kowloon bristled with excitement as Hong Kong’s first-ever cannabis investment conference kicked off. The one-day event promised to connect growing businesses with capital.

“It was definitely forward-thinking in regulation and more western than China was,” said Kaye, who co-organized the event. “It’s a monetary center so we thought there would be listings on the Hong Kong stock exchange for cannabis companies.”

A crop of businesses selling everything from CBD oil to beer sprung up. Tom Lorimer, co-founder of London-based CBD oil business OTO, said his company was on track to make HK$5 million in 2022 following deals with local luxury department stores and malls. But authorities slammed the brakes on the CBD boom last year, and residents were given three months to toss out soon-to-be-illegal goods in amnesty bins around the city.

“In one fell swoop, we closed our doors and put our energy and resources into new and CBD-nascent markets, such as Japan and the UAE,” said Lorimer. “Despite a growing need for functional plant-based adaptogens across society, Hong Kong, following China’s move last year, has sadly bucked the global trend towards greater acceptance of hemp-derived products.”
Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×