China remains the largest producer in hemp as in many industries. Seeking a stronger position in the growing CBD sector, it has brought major producers into one association.

The Yunnan Industrial Hemp Association (YIHA) will support new hemp varieties, improved CBD extraction technology and product development across hemp applications while helping establish industry standards.

Around 60 members

The association says it will facilitate information exchange and improve industry policy to strengthen Yunnan's hemp sector amid increasing international competition.

Alongside 12 founding members led by Yunnan Industrial Hemp Industry Investment Co., Ltd., another 47 companies joined.

A leading CBD supplier

Yunnan is one of two provinces with concentrated hemp activity, and company numbers are rising rapidly.

It quickly became the world's largest CBD supplier. Most Chinese CBD is exported to the United States, while the rest serves domestic markets for use in related products.

At the time of this report, CBD production was legal only in Yunnan and Heilongjiang, with other provinces not permitted to produce it. However, indications suggested northeastern Jilin would soon establish a legal hemp program too.