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Hong Kong bans CBD, forcing businesses to close or renovate

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February 1, 2023
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HONG KONG – Hong Kong banned CBD as a “dangerous drug” and imposed stiff penalties for its possession on Wednesday, forcing new businesses to close or refurbish.

Proponents say CBD, or cannabidiol, derived from the cannabis plant, can help relieve stress and inflammation without getting users high, unlike its more famous cousin THC, the psychoactive compound in marijuana that has been long illegal in Hong Kong. CBD was once legal in the city, and cafes and shops selling CBD-infused products were popular among young people.

But all that has changed with the ban, which came into effect on Wednesday but was announced by the government last year. CBD-related businesses have closed while others have struggled to remodel their businesses. Consumers dropped what they saw as cures for their ailments into special collection boxes located around town.

The new rule reflects a zero-tolerance policy on dangerous drugs in Hong Kong, a semi-autonomous southern Chinese business hub, as well as mainland China, where CBD was banned in 2022.

The city maintains several categories of “dangerous drugs,” which include “hard drugs” such as heroin and cocaine.

In explaining the policy change, the Hong Kong government cited the difficulty of isolating pure CBD from cannabis, the possibility of THC contamination during the manufacturing process, and the relative ease with which CBD can be converted to THC.

Customs authorities last week pledged to do more to educate residents to help them understand that CBD is banned in Hong Kong even though it is legal elsewhere.

Starting Wednesday, possession of CBD can result in up to seven years in prison and a fine of 1 million Hong Kong dollars ($128,000). Those convicted of importing, exporting or manufacturing the substance could face life imprisonment and a fine of 5 million Hong Kong dollars ($638,000).

Some users said the ban shows the international financial center is going backwards.

“It just feels less like an international city,” said Jennifer Lo, owner of CBD Bakery, which began selling CBD-infused cheese, cookies and drinks in 2021.

Her business largely dried up even before the ban took effect, she said.

“The rumors about the ban affected the way I do business,” she said. “Some platforms just took me offline without telling me. And then it was not so easy to get space in the markets.”

To comply with the ban, Lo threw away all her remaining stock, including dozens of cookies, and said she would have to rename her business.

Several other vendors, including the city’s first CBD cafe to open in 2020, closed.

Karena Tsoi, who used CBD skin care products for two years to treat her eczema, said she will have to find an alternative treatment.

“It’s tiring,” she said. “Government shouldn’t regulate like this.”

Most Asian nations have strict drug laws with harsh penalties, with the exception of Thailand, which legalized the cultivation and possession of marijuana last year.

Elsewhere, the debate over CBD continues.

The US Food and Drug Administration said last week that there is not enough evidence for CBD to confirm that it is safe for consumption in foods or as a dietary supplement. He called on Congress to create new rules for the growing market.

Marijuana-derived products have become increasingly popular in lotions, tinctures and foods, while their legal status has been murky in the US, where some states have legalized or decriminalized substances that remain federally illegal.

___

Find more of AP’s Asia-Pacific coverage at https://apnews.com/hub/asia-pacific

Copyright 2023 Associated Press. All rights reserved. This material may not be published, transmitted, rewritten or redistributed without permission.

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