China is shifting its regulations on CBD production that could lead to legalized production in the East Asia country, according to a memo from the U.S. Department of Agriculture.

The United States’ top source of all imported goods, China also has some of the strictest domestic bans on cannabidiol, though the substance can be exported.

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China gives CBD a ‘clear’ classification

Under new rules that take effect Sept. 1, CBD is one of seven substances to be incorporated into China’s “precursor chemicals management system,” the USDA said in its Aug. 9 memo, based on a translation of a Chinese government announcement.

With regard to CBD, “Regulations, and its production, operation, purchase, transportation, import and export activities comply with the relevant regulations on non-pharmaceutical

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