They absolutely could make gi's and shorts from hemp. It would only be cheaper if it was mass produced, and the only place with that much hemp and the ability to mass produce is china. Stretchy fabrics would be a blend at best, but gloves and punching bags would be no problem in theory, I just bet it would either be a one-off custom job or mass production, there is no easy middle ground with stuff like that. Great idea though.
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