Kazakh government backs China deal as foreign investors eye neighbor’s hemp sector

Kazakhstan is looking like a hemp hunting ground after a second major investment project, this time with China, was floated this week. It marks the second hemp venture unveiled in just three months, both led by the Ministry of Foreign Affairs and its investment promotion agency, Kazakh Invest.

Officials said Gabidulla Ospankulov, chairman of the Investment Committee at the Ministry of Foreign Affairs, met with Li Shu-he, chairman of Cheng Tian Run Kang Medical Limited, a Chinese pharmaceutical company. Li signaled plans to cultivate and process industrial hemp for pharmaceuticals, dietary supplements, and textiles, according to the Kazinform news agency.

Government support

Ospankulov said the initiative aligns with Kazakhstan’s investment priorities in pharmaceuticals and deep agricultural processing, and said state agencies are ready to support the project. Li cited Kazakhstan’s favorable conditions for agricultural ventures, and described the country as a strategic partner for long-term cooperation. The sides agreed to continue defining project parameters and exploring practical steps for implementation.

The Chinese announcement follows a similar move in July by Italy’s Unione Coltivatori Italiani (UCI), which met with Kazakh Invest and other officials in Astana to discuss pilot projects and long-term investment in textiles, green construction, and pharmaceuticals. Pilot plots of up to 100 hectares are expected in several regions.

Policy framework

The foreign interest comes as Kazakhstan moves to build an industrial hemp economy under legislation passed in June. The law created a framework clearly separating industrial hemp from high-THC cannabis, allowing cultivation between 0.1% and 0.3% THC, and granted four cultivation licenses. Pilot plantings are already underway in Kostanay, while plans are advancing for a second full-cycle agro-industrial facility in North Kazakhstan.

Kazakh authorities say they see hemp’s potential across bioenergy, pharmaceuticals, textiles, and light manufacturing, and that they have identified more than 500 applications. Domestic hemp could reduce costly imports of products such as paper, which have exceeded $100 million annually, they noted.

Break with the past

The move to hemp in Kazakhstan represents a departure from the country’s long struggle with illicit marijuana. Officials say the new industrial framework is designed to redirect existing infrastructure into controlled, legal channels while remaining under narcotics enforcement oversight.

With Italian and Chinese investors now both exploring the sector under the watch of the Ministry of Foreign Affairs and Kazakh Invest, Kazakhstan’s plan looks to position hemp as a driver of economic diversification, job creation, and sustainability. The dual-track of foreign investment and government-backed pilot projects suggests the sector is closer than ever to taking root after years of false starts.