China’s STMA Holds E-cigarette Regulatory Press Conference, Discloses Policy Enforcement and Industry Development Guidelines

Disclaimer: 

The English translation is for reference only. Please refer to the original Chinese version for accuracy.(original Chinese version)

Highlights Summary:

·The regulation of e-cigarettes has entered a deep-water area, facing a more complex and severe situation. Domestically, the phenomenon of e-cigarette products flowing back from export has been on the rise, and illegal e-cigarettes continue to be banned repeatedly. Internationally, global regulatory policies are tightening, with e-cigarette companies frequently facing trade investigations and increasing export trade risks. Facing new challenges, the State Tobacco Monopoly Administration is committed to improving the regulatory system, strictly enforcing the law, continuously promoting the legalization of regulations, industrial standardization, and team specialization, in order to create a new situation with new responsibilities and actions.

·The State Tobacco Monopoly Administration issued a reply on the "Legal Issues Applicable to New Types of E-Cigarette Products" in 2024, explicitly stating that products that do not contain nicotine and are either entirely or partially atomized into aerosol for inhalation, sucking, chewing, or nasal inhalation should be regulated according to the rules for e-cigarettes. Herbal atomizers that are falsely registered or marketed as medical devices, but do not contain nicotine and are either entirely or partially atomized into aerosol for inhalation, sucking, chewing, or nasal inhalation, are classified as e-cigarettes.

·In the past year, the State Tobacco Monopoly Administration has revoked licenses from 6 companies, approved the cessation of operations for 18 companies, and canceled or suspended the business scope of 80 licenses for 33 enterprises that have not started operations. The administration is closely monitoring capital operations, deepening collaboration with securities regulatory agencies, rigorously reviewing e-cigarette companies seeking to go public or issue stocks, and curbing the urge for financing expansion.

·Currently, the e-cigarette industry is experiencing intense competition leading to overcapacity, structural issues, and unethical practices that distort market mechanisms and disrupt fair competition. By June 30, 2025, the licenses of e-cigarette production companies will begin expiring. In response to the problem of overcompetition in the e-cigarette industry, the State Tobacco Monopoly Administration will coordinate policies, standards, licenses, and enforcement to optimize administrative license management, focusing on three key areas to guide the industry towards legal and regulatory governance.

·Implementing "double random, one open" on e-cigarette-related production companies and wholesale companies is an important measure to strengthen the supervision of e-cigarette operators in accordance with the law, and to continue promoting the legalization and standardization of the e-cigarette industry. The "Notice on Carrying out 'Double Random, One Open' Supervision of Certified e-cigarette-related Production Companies and Wholesale Companies" issued by the State Tobacco Monopoly Administration Office requires tobacco monopoly bureaus at all levels to further improve the checklist of inspection items, establish and improve inspection "two warehouses," coordinate the formulation of inspection work plans, scientifically implement inspection inspections, strengthen the utilization of inspection results and public announcements, actively construct a joint supervision mechanism, and coordinate the promotion of "double random, one open" supervision in the jurisdiction.

·Shenzhen is a hub for the domestic e-cigarette industry, with numerous companies and a complete industry chain. The number of e-cigarette production enterprises accounts for 72% of the country, and by 2024, e-cigarette exports are expected to make up 66% of the national total. Currently, there is a rising trend in the issue of e-cigarette smuggling, disrupting market order, harming business interests, and affecting the physical and mental health of minors.

State Tobacco Monopoly Administration holds press conference on e-cigarette regulation.

【2Firsts reprinted from ETN】On May 27, 2025, the State Tobacco Monopoly Administration held a press conference to introduce the regulations related to the supervision of e-cigarettes and answer questions from reporters. The press conference was hosted by Liu Peifeng, the spokesperson for the State Tobacco Monopoly Administration and Director of the Office of Foreign Affairs.

Liu Peifeng: Good morning everyone, welcome to today's press conference. We have invited Mr. Chen Jiashun, Deputy Director of the Network Trading Supervision and Management Division of the State Administration for Market Regulation, Mr. Lu Yonghua, Deputy Director of the e-cigarette Supervision and Management Division of the State Tobacco Monopoly Administration, Mr. Sun Ji, Deputy Director of the Monopoly Supervision and Management Division of the State Tobacco Monopoly Administration, and Mr. Zeng Zheng, Director of the Shenzhen Tobacco Monopoly Bureau. They will answer questions from journalists about improving the regulatory system, strict supervision in accordance with the law, and continuing to deepen and enhance e-cigarette regulation. I am the host of this press conference, Liu Peifeng, the spokesperson of the State Tobacco Monopoly Administration and Director of the Office of Foreign Affairs. Now, I will first give you an overview of the main points.

In November 2021, according to the "Decision of the State Council on Modification", new tobacco products such as e-cigarettes were legally incorporated into the tobacco monopoly regulatory system. The State Tobacco Monopoly Administration resolutely implemented the decision and deployment of the Party Central Committee and the State Council, systematically planned and coordinated to strengthen the regulation of e-cigarettes. With strong support from the Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Justice, Ministry of Commerce, General Administration of Customs, State Administration for Market Regulation, China Securities Regulatory Commission, and State Post Bureau, as well as local Party committees and governments, an efficient regulatory system was established. A series of regulatory enforcement actions were carried out in accordance with the law and regulations, fundamentally reversing the chaos in the e-cigarette industry. National tobacco control requirements were comprehensively implemented, and the health and safety of the people, especially minors, were effectively protected. The atmosphere of operating with integrity and compliance was comprehensively formed, and a basic framework of orderly competition was established. The concentration of the industry continued to increase, and the industry's outward orientation became more prominent.

Currently, e-cigarette regulation has entered a deep water area and is facing a more complex and severe situation. Domestically, there is a growing trend of e-cigarette products being exported and then reimported, and illegal e-cigarettes continue to be banned repeatedly. Internationally, global regulatory policies are becoming stricter, leading e-cigarette companies to frequently face trade investigations and increasing export trade risks. Faced with new challenges, the State Tobacco Monopoly Administration is committed to improving the regulatory system, strictly enforcing laws, and continuously promoting the legalization of regulations, standardization of the industry, and professionalization of the workforce, in order to create a new situation with new responsibilities and actions.

One is to adapt to new regulatory situations and continuously improve the regulatory system. In terms of the regulatory system, adjustments and new regulations have been made to meet the actual situation and changing regulatory requirements of e-cigarette companies, including revisions to regulations on fixed asset investment management, technical evaluation, transaction management, and logistics management. Recently, after seeking feedback, revisions were made to the "Regulations on the Management of Tobacco Monopoly Licenses for e-cigarette-related production companies and wholesale companies," continuing to improve regulatory rules. In terms of regulatory organizational system, the State Tobacco Monopoly Administration has established an e-cigarette supervision and management department according to the approval of relevant departments, and provincial tobacco monopoly bureaus have adjusted and improved e-cigarette regulatory agencies, strengthening regulatory efforts. In terms of joint regulatory mechanisms, provincial tobacco monopoly bureaus have received extensive support from local governments, and various departments including public security, market supervision, customs, and postal services are working together. Key regions such as Guangdong and Shenzhen have also established cross-regional cooperative mechanisms among provincial tobacco monopoly bureaus to enhance regulatory coordination and synergy.

Another key aspect is the enforcement of policies restricting certain industries and strict market access management. We will strictly control production capacity and earnestly implement the "Guiding Catalog for Industrial Structure Adjustment (2024 Edition)" which includes the requirement to categorize new tobacco products such as e-cigarettes as restricted. We have strengthened industrial policy guidance and have prevented 103 unauthorized e-cigarette projects from being started in the past year, effectively preventing the disorderly expansion and low-level duplication of e-cigarette production capacity. We will continue to prohibit new projects, improve overall supply-demand balance management, strengthen enterprise production capacity verification management, and eliminate inefficient and outdated production capacity. We will strictly regulate licensing access and enhance the management of administrative licensing matters, conduct strict legal reviews, strengthen in-process and post-process supervision, and promote the elimination of major illegal activities and abnormal business entities. In the past year, we have revoked licenses from 6 companies, approved the closure of 18 companies, and cancelled or suspended the business scope of 80 items from 33 companies that did not engage in operations. We will also strictly oversee capital operations, deepen cooperation with securities regulatory authorities, rigorously review e-cigarette-related enterprises seeking to go public or issue stocks, and curb financing expansion impulses.

There are three main points in the crackdown on illegal production and sale of flavored e-cigarettes and the regulation of market order. Since 2024, in order to further regulate the e-cigarette market order, the State Tobacco Monopoly Administration has unified the deployment of special law enforcement inspections. They have mobilized 190,000 law enforcement personnel, conducted 6,948 joint law enforcement operations, supervised and regulated operations 43,000 times, disseminated regulatory policies 48,000 times, and completed full coverage inspections of 21,000 e-cigarette business entities. They have strengthened supervision and law enforcement of licensed e-cigarette related production companies, issued 13 administrative penalties involving enterprises, and for the first time imposed penalties on four domestic production companies for selling products that are inconsistent with technical evaluation information. Implementing the opinion on strictly regulating administrative inspections involving enterprises, they have carried out "double random, one open" supervision, completed inspections during the 2025 "Spring Festival" to ensure good and stable market order. In conjunction with the National Narcotics Control Commission and the Ministry of Public Security, they have issued the "Opinions on Further Strengthening the Crackdown on Illegal Activities Involving e-cigarette Crimes," further deepening the crackdown on e-cigarettes involving drugs and banned substances. They have launched a special campaign to protect minors from the harm of e-cigarettes, focusing on cracking down on the online sale of "vape" and "bar elf" and other variant e-cigarette products, and harshly cracking down on illegal e-cigarette activities. Over the past year, all levels of tobacco monopoly bureaus have maintained a high-pressure law enforcement stance on e-cigarettes, focusing precisely on key links such as production, warehousing, transportation, retail, import and export, and severely cracking down on the illegal production and sale of flavored e-cigarettes, firmly curbing the rebound and spread of flavored e-cigarettes and the problem of export flow-back. Nationwide, a total of 7,615 administrative cases and 2,470 criminal cases related to e-cigarettes have been investigated, 23.28 million illegal e-cigarette products have been seized, and 2,263 individuals have been held criminally responsible, forming a strong deterrent against offenders.

Fourth, we will jointly crack down on online and offline activities, seriously investigating and handling a group of major cases. The State Tobacco Monopoly Administration has completed the construction of the second phase of the comprehensive online tobacco information monitoring platform and will put it into operation in 2024. This platform seamlessly interfaces with the national network transaction supervision platform, using big data analysis technology to deeply explore case clues, continuously regulating illegal tobacco information and sales activities on e-commerce, social media, short video, and live broadcasting platforms, significantly improving the efficiency of disposing internet-related tobacco product information. In just over a year, the Shenzhen center has collected a total of 791,000 pieces of internet-related tobacco information. Through investigating and analyzing problem clues, tobacco, public security, and other law enforcement departments have discovered and cracked down on a number of major criminal cases. For example, in the major "11.16" production and sale of counterfeit e-cigarette case in Suzhou, Anhui, a total of 50 criminal suspects were arrested nationwide, 3 centralized e-cigarette production sites were raided, 111,900 e-cigarette products were seized, involving over 4 billion yuan, with 24 individuals held criminally responsible. This successful operation has destroyed the largest illegal e-cigarette trading platform to date.

The fifth measure is to take multiple measures to prevent export trade risks. Strengthen export industry guidance. Support e-cigarette related production enterprises to improve independent intellectual property rights and independent brand awareness, increase related research and development and market expansion investment. Guide enterprises to fully consider investment risks, carry out overseas investment in accordance with the law. Regulate enterprise exports, prevent disorderly competition, and enhance export competitiveness centered on high-quality enterprises and products. Clarify corporate responsibilities. Urge companies to strictly fulfill the obligations of controlling quality and safety, and prevent export trade risks as the "first person responsible", supervise companies to benchmark the laws, regulations, and standards of the destination country (region), strengthen the construction of export product quality and safety systems, organize production and exports in accordance with the law and regulations. Crack down on illegal exports. Focus on key links such as product quality and safety, legal customs declaration exports, comprehensively use daily inspections, special inspections, product sampling inspections and other means, strengthen the supervision of the entire process of domestic production, logistics transportation, export customs declaration of export of e-cigarettes, strictly investigate illegal exports, severely crack down on false customs declarations, and resolutely curb export backflow. Grasp global regulatory trends. In-depth understanding of the characteristics of the e-cigarette industry, pay close attention to the global e-cigarette trade situation and regulatory trends, build a global regulatory policy database, and release risk warnings through multiple channels. Strengthen joint regulatory cooperation. Jointly with relevant departments and local governments, actively respond to administrative enforcement and trade sanctions by relevant countries on China's e-cigarettes, and orderly promote regulatory cooperation in e-cigarette import and export trade policies, quality control, data sharing, dispute response, etc.

In the next step, the State Tobacco Monopoly Administration will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the decisions and deployments of the Party Central Committee and the State Council, take safeguarding the health and safety of the people as the starting point, further improve regulatory policies, standardize industry operations, optimize management services, strengthen market supervision, prevent risks and hidden dangers, and continue to promote the legalization and standardization of the e-cigarette industry governance.

Let me briefly introduce these topics first. Afterwards, we welcome journalists to ask questions about any areas of concern, and we are happy to address them.

CMG Reporter: In a recent statement by the State Tobacco Monopoly Administration, the issue of illegal sale of flavored e-cigarettes by retailers has been brought to public attention. What specific and stronger regulatory measures will the Administration take to further enhance supervision of the illegal sale of flavored e-cigarettes?

Sun Ji: Thank you for your question. Selling flavored e-cigarettes is illegal and seriously harms the health of consumers, especially minors. Previously, some media reported on the issue of licensed retailers in certain areas illegally selling flavored e-cigarettes. The State Tobacco Monopoly Administration has taken this issue seriously and has required local tobacco monopoly bureaus to carry out thorough rectification and risk assessment. On May 9th, they issued a notice titled "Notice on Strictly Cracking Down on Licensed Retailers Selling Flavored E-cigarettes and Other Illegal Activities," which includes ten key focuses such as strengthening daily supervision, clearing illegal information, and enhancing source traceability and crackdown efforts.

For a long time, the Party group of the State Tobacco Monopoly Administration has attached great importance to legally strengthening the supervision of licensed e-cigarette retailers. According to relevant statistics, from 2024 to present, law enforcement personnel from various levels of tobacco monopoly bureaus have conducted inspections on licensed e-cigarette retailers 19.1 million times, imposing administrative penalties on 1941 retailers, with fines totaling 4.777 million yuan, temporarily closing down 96 retailers, revoking the business qualifications of 97 retailers. In collaboration with public security and other departments, they have handled 232 criminal cases involving licensed e-cigarette retailers, arresting 667 suspects, sentencing 99 individuals, effectively maintaining a good order in the e-cigarette market.

Next, tobacco monopoly bureaus at all levels will make full use of the 12313 hotline complaints, public reports, regulatory visits and other methods to highlight cracking down on flavored e-cigarettes sold by licensed retailers, selling e-cigarettes to minors, online sales of e-cigarettes, selling herbal vapes, selling smokeless tobacco products and other illegal activities. They will further strengthen daily supervision of licensed e-cigarette retailers, improve the standards for administrative penalties and discretion, enhance the traceability crackdown on illegally selling flavored e-cigarettes, showcase the deterrent effect of major typical cases, release a zero-tolerance crackdown signal, guide licensed e-cigarette retailers to operate in accordance with the law and regulations, and protect the physical and mental health of the public, especially minors.

The Paper Reporter: Purifying the campus environment and protecting minors from e-cigarette harm is a shared responsibility of the whole society. Please introduce what work has been done by relevant departments in carrying out campus perimeter cleaning and resolutely preventing e-cigarette invasion in primary and secondary school campuses.

Sun Ji: Thank you for your question. The State Tobacco Monopoly Administration has long attached great importance to the protection of minors and has actively taken various effective measures to protect the physical and mental health of minors.

Firstly, establish institutional norms and cut off online sales channels. In 2018 and 2019, the State Administration for Market Regulation successively issued notices on prohibiting the sale of e-cigarettes to minors and further protecting minors from the harm of e-cigarettes, urging e-cigarette manufacturers, sales companies, and individuals to shut down e-cigarette internet sales websites or apps; urging e-commerce platforms to promptly close e-cigarette shops and remove e-cigarette products; urging e-cigarette manufacturers, sales companies, and individuals to withdraw e-cigarette advertisements posted online. Promote major online search platforms to stop e-cigarette advertising services, major e-commerce platforms to prohibit the retrieval of e-cigarette related keywords and block e-cigarette advertising information, effectively rectifying key areas and weak links in the sale of e-cigarettes to minors.

Secondly, special actions are being carried out to rectify the chaos of illegal offline sales. In 2022, a joint effort by the Ministry of Public Security, the State Administration for Market Regulation, and the Ministry of Education was launched to crack down on the illegal sale of e-cigarettes to minors and to harshly combat e-cigarette-related crimes. From the end of 2022 to the beginning of 2023, special governance activities targeting illegal e-cigarettes disguised as "milk tea cups" and "cola cans" were carried out. From May to June 2024, measures were implemented to protect minors from the harm of e-cigarettes, with the cooperation of major administrative leading platform companies from the State Administration for Market Regulation to address the issue of cigarette sales cards. Over the course of five years of continuous special actions, a total of 1.773 million law enforcement officers were mobilized nationwide, over 25,000 smoke-selling points around primary and secondary schools and kindergartens were cleared, nearly a thousand automatic cigarette vending machines were removed, 9310 tobacco card sales entities were dissuaded, more than 1200 cases of selling e-cigarettes to minors were investigated, and fines totaling over 3 million RMB were imposed.

Thirdly, we are conducting public legal education and publicity to consolidate a broad social consensus. We have planned and filmed three public service short videos to protect minors from the harm of smoking, with online views exceeding tens of millions, becoming the "first lesson of the school year" in many regions. We are using methods such as posting slogans, making display boards, signing advocacy documents, online video and information dissemination, and campus lectures to strengthen the legal publicity for tobacco sales outlets and public awareness, enhance minors' self-awareness to identify and resist e-cigarettes. We are implementing the comprehensive posting of warning signs for the protection of minors in e-cigarette shops, as well as enforcing age verification measures and education for tobacco sales staff to operate in compliance with the law and actively participate in protecting minors. We are promoting collaboration among tobacco, public security, market supervision, education, health and other relevant departments to create a fresh environment conducive to the healthy growth of minors.

Currently, the issue of e-cigarettes harming minors has not been completely eradicated, and cases of illegal sales both online and offline are still occurring. We will continue to strengthen regulatory enforcement and hope to receive support and cooperation from schools, families, and other relevant parties. Through joint efforts of the whole society, we are determined to prevent e-cigarettes from infiltrating primary and secondary school campuses.

China Market Regulatory News Reporter: According to relevant regulations, selling e-cigarettes and advertising e-cigarettes through the internet is prohibited. Can you please explain what work the Market Supervision Administration has done in terms of regulating e-cigarettes on the internet?

Chen Jiashun: Thank you for your question. It is legally prohibited to sell e-cigarettes and advertise e-cigarettes online, which is of great significance in safeguarding the physical and mental health of the public, especially minors. The State Administration for Market Regulation attaches great importance to the regulation of online tobacco-related products and actively supports and cooperates with the tobacco, public security, and other relevant departments in enforcing tobacco-related regulations, forming a united front in our efforts.

Firstly, actively participating in the improvement of e-cigarette related policies and regulations, cooperating with the special rectification of online sales of e-cigarettes. We actively participated in the revision of the "Regulations on the Implementation of the Tobacco Monopoly Law" and the "Management Measures for E-cigarettes", and jointly issued two notices with the State Tobacco Monopoly Administration to ban the online sales of e-cigarettes, protecting minors from the harm of e-cigarettes. In the joint efforts of multiple departments to carry out special inspections in the e-cigarette market and crackdown on illegal activities, we have always closely cooperated and collaborated in cracking down on online sales of e-cigarettes.

Next, the departments will strengthen collaboration and put pressure on e-commerce platforms to fulfill their responsibilities in managing tobacco-related issues. In May 2024, in cooperation with the State Tobacco Monopoly Administration, administrative guidance was given to 10 major e-commerce platforms, requiring them to establish a sound mechanism for independently clearing illegal tobacco-related information. In accordance with specific guidance from the State Tobacco Monopoly Administration, keywords related to e-cigarettes will be included in the list of prohibited items for online sale and updated regularly to prompt and guide platforms to enhance their regular control measures.

Once again, we adhere to the principles of co-building, co-governing, and sharing, providing strong support for the dynamic clearance and disposal of online e-cigarette information in the tobacco sector. In recent years, we have placed great importance on intelligent supervision and technological empowerment, establishing online communication channels between relevant supervisory authorities and platform companies to support departments such as the State Tobacco Monopoly Administration in directly issuing relevant instructions and compliance reminders to platforms, reducing the opportunities for the general public, especially minors, to access e-cigarettes through the internet.

Finally, we will strengthen the legal supervision of e-cigarette advertising. On one hand, we will promptly improve the rules for regulating e-cigarette advertising. In 2023, we will revise and introduce the "Internet Advertising Management Measures," which specifically prohibit the use of the internet to publish tobacco (including e-cigarette) advertising. On the other hand, we will conduct monitoring of e-cigarette advertising and urge and guide local market supervision departments to strictly investigate and crack down on illegal e-cigarette advertising practices.

Next, the State Administration for Market Regulation will continue to collaborate with relevant departments, leverage their respective strengths, enhance cooperation in regulating online tobacco products, effectively protect the physical and mental health of the public, especially minors, and create a clean and healthy online environment.

CNR Reporter: Recently, we have noticed that some herbal vaporizers sold in certain markets or online closely resemble e-cigarettes in both appearance and usage, yet they are registered or filed as medical devices under the label of "medical heating atomizers." Could you clarify whether these herbal vaporizers fall under the category of e-cigarettes? What actions have the tobacco monopoly enforcement authorities taken in response to such cases?

Sun Ji: Thank you for your question. In 2024, the State Tobacco Monopoly Administration issued an official reply titled On the Application of Laws Concerning New Types of E-cigarette Products, which clearly states that products without nicotine, but that are wholly or partially aerosolized for inhalation, sucking, chewing, or nasal intake, shall be regulated in accordance with e-cigarette regulations. Therefore, herbal vaporizers that do not contain nicotine but are manufactured and sold under the guise of being registered or filed as medical devices—while in fact functioning by aerosolizing substances for human intake—are classified as e-cigarettes.In response, we have taken the following key measures:

First, we have enhanced inter-agency coordination and strengthened source management. In September 2024, the State Tobacco Monopoly Administration and the National Medical Products Administration (NMPA) jointly conducted a study on the social harms and regulatory challenges of herbal vaporizing e-cigarettes. They identified five core differences between herbal vaporizing e-cigarettes and genuine medical devices in terms of use, temperature, and aerosol properties. Joint efforts were made to improve oversight and prevent the misuse of medical device registration as a cover for e-cigarette production. In 2025, the NMPA’s Center for Medical Device Standard Management revised its 2020–2021 Classification Summary of Medical Device Definitions, officially invalidating the classification result for Item 254—Medical Heating Atomizer—effectively cutting off the pathway for herbal vaporizers to be registered as medical devices at the source.

Second, we have maintained a strict enforcement posture and conducted targeted clean-up campaigns. These efforts have been integrated into the broader regulatory framework for online tobacco sales and routine e-cigarette supervision. From June to September 2024, the State Tobacco Monopoly Administration launched a special enforcement campaign targeting the online sale of herbal vaporizing e-cigarettes. As part of this effort, 11 major e-commerce platforms were prompted to fully delist such products. Local tobacco monopoly offices proactively engaged with internet companies, holding 65 meetings and issuing 36 regulatory notices. The campaign resulted in 86 administrative cases and 37 criminal cases, involving over RMB 18.22 million in illicit transactions and the seizure of more than 200,000 e-cigarette products.

Looking ahead, we will further strengthen inter-agency collaboration, conduct policy outreach, maintain high-pressure enforcement, and continue cracking down on the illegal sale of e-cigarettes under the guise of medical devices.

Economic Daily Reporter: The technology and financial threshold for entering the e-cigarette industry is relatively low. We’ve learned that some localities remain highly enthusiastic about attracting investment in e-cigarette enterprises. Could you explain how the State Tobacco Monopoly Administration plans to align with national industrial policies—such as the Catalog for Guiding Industry Restructuring (2024 Edition)—to limit production capacity and prevent disorderly expansion?

Lu Yonghua: Thank you for your question—it's an important one. E-cigarettes are a special category of products, and the national legislative intent is to enforce strict and rigorous regulation. Since being brought under regulatory oversight, tobacco monopoly bureaus at all levels have upheld the principle of combining an effective market with a proactive government. They have implemented national tobacco control policies, balanced market demand with adequate supply, and explored mechanisms for dynamic supply-demand equilibrium under total production management.At present, based on reported production capacities and actual output, the average capacity utilization for three product categories—e-cigarettes, atomizing liquids, and nicotine for e-cigarettes—is significantly lower than the national average for the manufacturing sector. This overcapacity necessitates strict adherence to policies classifying e-cigarettes as restricted industries. We must optimize industrial layout, reinforce total output controls, and tighten licensing thresholds to prevent unchecked expansion.

First, we are resolutely halting unauthorized new e-cigarette projects. Local tobacco monopoly bureaus are being guided to actively promote and explain national policies and associated risks. Public supervision is being strengthened through official government websites and the 12313 hotline. We are also exploring cross-agency coordination mechanisms to consolidate policy enforcement and assist relevant departments in blocking non-compliant e-cigarette projects. Since regulation began, nearly 500 unauthorized e-cigarette projects have been successfully prevented.

Second, we are implementing strict total output control. The State Tobacco Monopoly Administration is enhancing production capacity and scale management under the principles of fairness, transparency, categorization, and orderly implementation. From June this year, all e-cigarette manufacturers will undergo a production capacity audit. Approved capacity figures will be printed directly on their manufacturing licenses and serve as a basis for total output regulation. Production lines failing to meet quality, energy efficiency, environmental protection, safety, and compliance standards will be eliminated to prevent blind expansion and repetitive construction.In terms of scale management, we aim to improve demand forecasting, refine rules for scaling and adjustment, and strictly control production capacity in new license applications. Efforts will also be intensified across technical standards development, corporate self-regulation, safety systems, quality inspections, law enforcement, and credit management to ensure market stability and efficient resource allocation.

I would also like to briefly mention global regulatory trends. As awareness of the harms of e-cigarettes grows, countries are tightening their policies. Since the second half of 2023, nations like the UK, Belgium, and France have announced bans on disposable e-cigarettes and intensified enforcement on imports and domestic sales. Given this context, I urge local governments and enterprises to strictly comply with the national policy that classifies e-cigarettes and similar products as restricted industries, and to halt the launch of new e-cigarette projects.

People's Daily Reporter: Licensing access for e-cigarette operators is a key aspect of the regulatory system. Could you elaborate on how the State Tobacco Monopoly Administration is strengthening market access for e-cigarette manufacturers and ensuring orderly and lawful administrative licensing?

Lu Yonghua: Thank you for the question. The State Tobacco Monopoly Administration remains committed to law-based governance. We have established comprehensive licensing and access standards for e-cigarette manufacturers, developed electronic licensing formats, and built a robust license management framework. In 2022, all qualified e-cigarette manufacturers were issued licenses, and in 2023 we completed the first round of license renewals, aligning licensing with business operations and regulatory oversight to support lawful and standardized governance of the e-cigarette sector.

Currently, the e-cigarette industry faces intense "involution"—excessive internal competition—and structural issues, including market distortions and breaches of fair competition. As licenses begin to expire on June 30, 2025, the State Tobacco Monopoly Administration will coordinate policies, standards, licensing, and enforcement to further improve licensing practices in three key areas:

First, we will continue refining the licensing framework. This includes aligning licensing access more closely with industrial and regulatory policies, standardizing procedures, and fostering a fair and transparent business environment. We recently revised the Detailed Rules for the Administration of Tobacco Monopoly Licenses for E-cigarette Manufacturers and Wholesalers, without adding new licensing conditions or burdens. The updates clarify application requirements, such as resources, quality assurance systems, and safety capabilities, and improve procedures for license applications, changes, and renewals. We are also enhancing dynamic license management and supervision practices.

Second, we will enforce license review more strictly. During the current renewal period, all license holders will undergo comprehensive compliance reviews, including both documentation and on-site inspections. New applications will not be accepted during this process to ensure a smooth transition. Based on review results:Fully compliant companies will receive renewed licenses;Minor non-compliant firms with no violations will be given time to rectify and renew;

Firms unable to meet standards during the license period will be required to rectify before renewal;Those failing to meet requirements or rectify on time will not have their licenses renewed.

Third, we are improving license management services. Tobacco monopoly bureaus at all levels are stepping up administrative services, offering training and policy guidance to license holders to ensure compliance with revised requirements—especially regarding capital, technology, and facilities. Enterprises are encouraged to prepare detailed documentation and cooperate during site inspections. Businesses must operate lawfully and responsibly, upholding product quality and safety. Regulatory enforcement will be intensified using joint inspections, quality checks, and public disclosures, aligning administrative licensing with regulatory oversight.

Legal Daily Reporter: Earlier this year, the State Tobacco Monopoly Administration issued a notice on "double-random, one-public" supervision of licensed e-cigarette manufacturers and wholesalers. Since April, nationwide campaigns targeting e-cigarette violations have been launched. What are the key focus areas for this campaign now and in the near future?

Lu Yonghua: Thank you. Implementing “double-random, one-public” (random selection of inspectors and enterprises, with results made public) is a vital tool for law-based and standardized governance. The Notice on Carrying Out “Double-Random, One-Public” Supervision of Licensed E-cigarette Manufacturers and Wholesalers mandates improved inspection item lists, creation of dual inspection databases, and a scientific inspection framework. Public disclosure of results and joint enforcement mechanisms are also emphasized.

Following the notice, tobacco monopoly bureaus have drafted inspection plans accordingly. In response to heightened risks in e-cigarette exports and persistent flavored product violations, a national enforcement campaign has been launched, focusing on four priorities:

1. Enforcing corporate accountability — Inspections will determine whether companies operate strictly within licensed scope.

2. Cracking down on illegal production and sales — This includes identifying the production or sale of illegal “buzz e-cigarettes,” flavored products, and herbal vaporizers. Enforcement will target licensed companies involved in such violations.

3. Preventing export diversion — Authorities will check whether companies comply with export filings, customs regulations, and destination country laws. E-cigarette re-importation into the domestic market will be strictly punished.

4. Integrated online-offline enforcement — Platforms, retailers, and manufacturers will be scrutinized. Complaints and case leads will be followed up via covert investigations, and logistics channels will be jointly regulated.

Recent investigations have uncovered typical cases: Some licensed companies were found to be illegally producing for unlicensed entities. One illegal factory in Guangdong organized several licensed firms to produce about 320,000 disposable e-cigarettes and 9,000 devices, with a market value nearing RMB 30 million. The illegal factory has been placed under criminal investigation, while the licensed firms face administrative action. Other licensed firms, under the guise of R&D, were found operating unapproved production sites. Two atomizer firms in Guangdong were producing with nicotine without permits. Some companies exported non-compliant products, lacking documentation to prove conformity with destination country standards.

Verified violations will be dealt with swiftly and strictly. Moving forward, the State Tobacco Monopoly Administration will continue guiding local agencies to enforce routine oversight, crack down on market disorder, and uphold national and consumer interests.

Nanfang Daily Reporter: We’ve seen reports that some non-compliant flavored e-cigarettes labeled for export are still illegally circulating in the domestic market. Despite increased enforcement by tobacco authorities, the issue persists. How will law enforcement agencies respond to e-cigarette smuggling to maintain fair market competition?

Zeng Zheng: Thank you for your continued interest in local regulation of the e-cigarette industry. Shenzhen is the hub of China’s e-cigarette industry, home to a large number of enterprises and a complete industrial chain. The city accounts for 72% of the country’s e-cigarette manufacturing companies and contributed 66% of the national e-cigarette export value in 2024. Currently, the issue of e-cigarette smuggling is on the rise, disrupting market order, harming legitimate businesses, and endangering the physical and mental health of minors.

Since the beginning of this year, the Shenzhen Tobacco Monopoly Administration, following directives from the Ministry of Public Security, the General Administration of Customs, and the State Tobacco Monopoly Administration, has intensified its crackdown on smuggling and the illegal sale of e-cigarettes.We have strengthened joint enforcement efforts. In collaboration with the police, market regulators, customs, anti-smuggling units, and postal authorities, we have launched special campaigns such as “Shenjian 2025,” “Jingwu 2025,” and “100-Day Blitz” to maintain a high-pressure crackdown. From January to April, a total of 69 e-cigarette-related cases were investigated across the city, involving the seizure of 649,600 illegal e-cigarette products worth 43.65 million yuan. Among these were 25 criminal cases, leading to the detention of 12 individuals and the arrest of one.We have also intensified market regulation. An integrated online and offline supervision model is in place to strictly punish the sale of smuggled e-cigarettes. Through staggered inspections, surprise checks, and targeted enforcement, we have conducted routine monitoring and further investigated two criminal e-cigarette cases stemming from offline retail leads.

In addition, we have enhanced the monitoring, removal, and investigation of e-cigarette sales information on the internet. So far this year, 1,534 pieces of illegal tobacco-related content have been removed from websites within Shenzhen, and 10 internet-based e-cigarette sales cases have been prosecuted.To improve compliance awareness, we’ve conducted extensive public education. Using a mix of case studies, legal publicity, and on-site inspections, we’ve sent warning letters, delivered legal lectures at enterprises and retail stores, organized targeted discussions, and issued reminders—reaching all e-cigarette producers and retailers citywide—to raise awareness of legal responsibilities and promote honest and lawful business practices.

Looking ahead, under the unified direction of the State Tobacco Monopoly Administration and relevant authorities, the Shenzhen Tobacco Monopoly Administration will further deepen its integrated law-based approach and maintain strong pressure against e-cigarette smuggling.

We will continue to strengthen comprehensive enforcement capabilities. By integrating with the local government’s broader anti-smuggling system, we aim to refine inter-agency coordination mechanisms, enhance data sharing and intelligence exchange, and elevate joint enforcement effectiveness.

We will intensify full-chain crackdowns. Targeting key points such as customs clearance and logistics, we will strictly prevent smuggled e-cigarettes from entering the domestic market. Market supervision will be strengthened to crack down on the illegal sale of smuggled goods.

We will pursue major and high-profile cases. By coordinating with other enforcement agencies, we aim to identify and dismantle smuggling networks at the source, prosecute principal offenders, and maximize the deterrent effect.

We will continue to promote legal education and awareness. With a focus on positive messaging and publicizing typical cases, we will foster a culture of legal compliance and self-discipline, creating a social environment of joint participation in enforcement and regulation.

Liu Peifeng: Thank you to all speakers and journalist friends for your participation. That concludes today’s press conference. Goodbye.

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