China bolsters e-cigarette regulations to smoke out non-compliance
China is tightening regulations on e-cigarette production and investment to curb excessive competition and improve compliance.Summary
China is strengthening its regulatory control over the e-cigarette industry to address issues of overcapacity, fierce competition, and non-compliance with export rules. The new draft policy, released by the national tobacco regulator, follows a recent State Council opinion placing e-cigarettes and nicotine pouches under stricter oversight. A key concern is “involution-style” competition – a self-defeating cycle of price wars and shrinking profits – which the government aims to limit by restricting investment and production expansion. Specifically, no new e-cigarette projects will be permitted, and existing facilities cannot increase production capacity through relocation, reconstruction, or technical renovations. Companies will be required to operate within approved production limits, and any adjustments will need further approval and updated licensing. This move reflects China’s broader effort to enhance its regulatory power over the tobacco sector, which currently enjoys a functional monopoly.
(Source：South China Morning Post)
