China tightens control over e-cigarette production and exports
China’s State Tobacco Monopoly Administration has introduced a draft of new regulations targeting the e-cigarette industry, aiming to ban the expansion of production capacities, limit investments, and enhance product quality control.
Source Scmp
The draft prohibits relocating or reconstructing production facilities if it results in increased capacity and requires companies to strictly follow approved production plans aligned with actual market demand. This move is part of China's effort to combat "involution" — destructive competition driving prices and profit margins down.
China accounts for over 90% of the world’s e-cigarette production, with the United States remaining the largest export market. The new restrictions are expected to stabilize the market and improve product quality.
