Current:Home > StocksHong Kong bans CBD, a move that forces businesses to shut down or revamp -Finovate
Hong Kong bans CBD, a move that forces businesses to shut down or revamp
View
Date:2025-04-17 03:43:16
HONG KONG — Hong Kong banned CBD as a "dangerous drug" and imposed harsh penalties for its possession on Wednesday, forcing fledging businesses to shut down or revamp.
Supporters say CBD, or cannabidiol, derived from the cannabis plant, can help relieve stress and inflammation without getting its users high, unlike its more famous cousin THC, the psychoactive ingredient of marijuana which has long been 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 prohibition, which took effect Wednesday but had been announced by the government last year. CBD-related businesses have closed down while others have struggled to remodel their businesses. Consumers dumped what they saw as a cure for their ailments into special collection boxes set up around the city.
The new rule reflects a zero-tolerance policy toward dangerous drugs in Hong Kong, a semi-autonomous southern Chinese business hub, as well as in 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 contamination with THC during the production process and the relative ease by which CBD can be converted to THC.
Customs authorities vowed last week to do more to educate residents to help them understand that CBD is prohibited in Hong Kong even though it is legal elsewhere.
Starting Wednesday, possession of CBD can result in up to seven years in jail and a 1 million Hong Kong dollar ($128,000) fine. Those convicted of importing, exporting or producing the substance can face up to life in prison and a 5 million Hong Kong dollar ($638,000) fine.
Some users said the ban shows the international financial hub is going backward.
"It's just looking less like an international city," said Jennifer Lo, the owner of CBD Bakery, who started selling CBD-infused cheesecakes, cookies and drinks in 2021.
Her business largely dried up even before the ban took effect, she said.
"Rumors of the ban affected how I do business," she said. "Some platforms just took me offline without telling me. And then it was not as easy to get space at markets."
To comply with the ban, Lo dumped all her remaining stock, including dozens of cookies, and said she would have to rebrand her business.
Some other vendors, including the city's first CBD cafe that opened in 2020, shut down.
Karena Tsoi, who used CBD skincare products for two years to treat her eczema, said she will have to find an alternative treatment.
"It's troublesome," she said. "The government doesn't have to regulate like this."
Most Asian nations have strict drug laws with harsh penalties with the exception of Thailand, which made marijuana legal to cultivate and possess last year.
Elsewhere, the debate over CBD continues.
The U.S. Food and Drug Administration said last week that there is not enough evidence about CBD to confirm that it's safe for consumption in foods or as a dietary supplement. It 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 U.S., where several states have legalized or decriminalized substances that remain illegal federally.
veryGood! (8)
Related
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- Rashee Rice told police he was driving Lamborghini in hit-and-run car accident, lawyer says
- Knicks forward Julius Randle to have season-ending shoulder surgery
- $30 million stolen from security company in one of Los Angeles' biggest heists
- Senate begins final push to expand Social Security benefits for millions of people
- Southern California hires Eric Musselman as men's basketball coach
- Tech companies want to build artificial general intelligence. But who decides when AGI is attained?
- YouTuber Aspyn Ovard files for divorce; announces birth of 3rd daughter the same day
- What do we know about the mysterious drones reported flying over New Jersey?
- Sen. Tammy Duckworth calls for FAA review of Boeing's failure to disclose 737 Max flight deck features to pilots
Ranking
- Senate begins final push to expand Social Security benefits for millions of people
- Lily Allen says Beyoncé covering Dolly Parton's 'Jolene' is 'very weird': 'You do you'
- Glasses found during search for missing teen Sebastian Rogers, police unsure of connection
- Small businesses apply for federal loans after Baltimore bridge collapse
- A South Texas lawmaker’s 15
- F1 star Guenther Steiner loves unemployed life, and his new role with F1 Miami Grand Prix
- Indianapolis police to step up enforcement of curfew law after weekend shootings
- LeBron James supports the women's game. Caitlin Clark says 'he's exactly what we need'
Recommendation
Taylor Swift makes surprise visit to Kansas City children’s hospital
Molly Ringwald thinks her daughter was born out of a Studio 54 rendezvous, slams 'nepo babies'
John Passidomo, husband of Florida Senate President, dies in Utah hiking accident
Biden is touring collapsed Baltimore bridge where recovery effort has political overtones
Kylie Jenner Shows Off Sweet Notes From Nieces Dream Kardashian & Chicago West
Arkansas mom arrested after 7-year-old son found walking 8 miles to school, reports say
Seton Hall defeats Indiana State in thrilling final to win NIT
Wisconsin man ordered to stand trial on neglect charge in February disappearance of boy, 3