2Firsts, January 5, 2026, Shenzhen-China’s State Tobacco Monopoly Administration (STMA) on January 5 moved to introduce a credit management framework for e-cigarette-related enterprises, releasing draft rules that set out how the system would operate and opening them for public comment through January 14, 2026.
The proposed framework, outlined in the Credit Management Rules for E-Cigarette-Related Manufacturing and Wholesale Enterprises (Trial), would establish a credit-based oversight mechanism for e-cigarette companies. The move is part of China’s broader effort to refine its regulatory architecture and increase the visibility of compliance-related information across the e-cigarette supply chain.
Credit management positioned as a core regulatory tool
The introduction of the draft credit management rules represents a further institutional step in the evolution of China’s e-cigarette regulation, rather than a standalone policy action. As regulatory priorities shift from campaign-style enforcement toward long-term governance, credit management is being incorporated as a tool to differentiate enterprises based on compliance performance and apply risk-based oversight.
In its announcement, the STMA said the draft rules are intended to strengthen credit management of e-cigarette business entities and promote rule-based and standardized development of the sector.
The policy direction had been signaled earlier in a document titled Notice on Implementing E-Cigarette Industrial Policies and Further Promoting Dynamic Supply-Demand Balance. That notice explicitly called for the construction of a credit-based regulatory system for e-cigarettes and the application of differentiated supervisory measures. It also stated that for compliant e-cigarette manufacturing enterprises with strong credit records, regulators would gradually simplify verification materials and procedures and reduce the frequency of on-site inspections.
The newly released draft rules are widely viewed as the institutionalization of those earlier policy signals.
High-level framework for credit-based oversight
According to the draft, the STMA plans to establish a unified credit management framework covering e-cigarette-related manufacturing enterprises and wholesale entities. By integrating basic corporate information, public credit records and e-cigarette regulatory data, the system would form a consolidated profile of an enterprise’s compliance status.
The framework introduces a graded credit management approach, under which regulatory measures would vary depending on an enterprise’s credit standing. Certain categories of credit violations would be recorded and disclosed in accordance with applicable rules, while credit status would be linked to regulatory attention and licensing-related arrangements.
The draft also provides for mechanisms to address objections and restore credit, allowing enterprises to apply for credit repair after correcting misconduct and fulfilling relevant obligations.
While the rules apply to both manufacturing and wholesale enterprises, their implications for international markets are primarily associated with e-cigarette manufacturers, as wholesale activities in China are largely conducted within the state tobacco system.
Alan Zhao: Transparency supports international risk assessment and cooperation
Alan Zhao, co-founder and chief executive officer of 2Firsts, said that from an international market perspective, the core significance of the proposed framework lies in the creation of a more comprehensive and identifiable credit profile for e-cigarette manufacturers.
By bringing together regulatory violations, public credit information and indicators of abnormal business operations, the system would provide a more systematic record of enterprise compliance, Zhao said, helping to enhance transparency across China’s e-cigarette supply chain.
The disclosure of certain credit violations would make it easier for overseas regulators, international clients and business partners to assess compliance risks associated with Chinese manufacturers, potentially lowering the cost of cross-border due diligence and cooperation management, he added.
Introduced amid a series of regulatory actions
The move to introduce a credit management framework comes amid a series of regulatory measures rolled out since December.
On December 5, 2025, China’s State Council convened an executive meeting calling for a full-chain crackdown on tobacco-related illegal activities. This was followed on December 18 by an opinion issued by the General Office of the State Council, which further strengthened enforcement deployment and brought e-cigarettes under tighter regulatory scrutiny.
Subsequently, the STMA on December 25 released a policy framework tightening controls over e-cigarette production capacity and investment, and on December 26 published a “status report” systematically outlining the regulatory framework and enforcement outcomes governing the e-cigarette sector.
Taken together, the sequence of measures suggests that China is continuing to institutionalize and refine its e-cigarette regulatory regime. Whether additional supporting policies will follow remains to be seen.
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