China is following Britain's lead by massively increasing industrial cannabis production despite the drug being illegal.
Last year saw two Chinese provinces, Yunnan and Heilongjiang, granted licences for industrial cannabis to be grown.
However, the industry is subject to strict controls by the Government concerning its transportation, planting and storage. And the plants production is to be solely used in help based fabrics and as seeds.
Deputy Director of the National Narcotics Control Commission Liu Yuejin was forced to hold a press conference to assure people the drug's cultivation would be strictly monitored and there was no plans for decriminalisation.
Companies including Shanghai Shunho New Materials Technology Co and Zhejiang-based Conba Group moved into the sector last year and shares in companies which produce cannabis have rocketed in recent months.
Huaren Pharmaceutical in Qingdao announced its collaboration with a biotechnology company in Yunnan Province to cultivate cannabis production in greenhouses and has seen its stock market value increase as a result.
China has a strict zero tolerance policy on medical and recreational cannabis. However, industry insiders believe the best way to convince the ruling Communist party administration to relax cannabis laws will be the economic arguments.
Britain's industrial cannabis cultivation has seen the UK leapfrog other countries in the amount of the drug exported, despite cannabis still being illegal.