E-cigarettes/vapes are now regulated along the same lines as tobacco cigarettes in China.
Finalizing what many saw as a foregone conclusion, China formally amended its state tobacco monopoly law to put the country’s burgeoning e-cigarette and vape industry firmly under control, as it does with the traditional tobacco business. Already, China National Tobacco Corporation (CTNC) and the State Tobacco Monopoly Administration (STMA) oversee new generation products containing tobacco, such as heat-not-burn (HNB), but now the government monopoly entity takes over control of the e-cigarette and vape business, regardless of whether they contain tobacco or not.
CNTC and STMA exert a firm grip on China’s tobacco industry overseeing production, distribution, and importation of products and manufacturing inputs. The new CNTC control over vape/e-cigarettes should also mean varying degrees of government control over products, production, and distribution. Until now, many private firms have sprouted up in China offering world-class products, many of which have listed on US stock markets and have multi-billion-dollar capitalizations now. It is unclear what influences the government will take in these private firms. Most traditional tobacco and cigarette companies in China operate as quasi-government entities.
The cabinet order, which was signed off by Premier Li Keqiang and published on the Chinese government’s website on November 26, came into effect immediately. While the statement did not provide further details, it is likely that e-cigarette/vape companies will be required to disclose ingredients, additives, and nicotine content; warn of potential health risks; pay high taxes; and are not allowed to sell or market their products online or open stores near schools, similar to traditional tobacco products.
China’s Electronic Cigarette Industry Committee said the cabinet order was “necessary and timely” and regulates the industry, solves problems such as quality and safety risks, as well as protects consumer interests.