Major Crackdown on Production and Sale of Counterfeit E-Cigarettes

Regulations by 2FIRSTS.ai
Nov.24.2023
Major Crackdown on Production and Sale of Counterfeit E-Cigarettes
Police in Shiyan, Hubei province, China, have busted a major e-cigarette production and sales case, arresting 20 suspects and seizing over CNY 100 million worth of counterfeit products.

According to a statement released by the Dongyue Sub-bureau of the Public Security Bureau (PSB) in Shiyan, Hubei Province on November 23rd, a major case involving the production and sale of counterfeit e-cigarettes across multiple provinces and cities has been successfully cracked. The authorities have apprehended 20 suspects involved in the case, with the total value of the products involved exceeding 100 million yuan.

Major Crackdown on Production and Sale of Counterfeit E-Cigarettes
Translation: Production site of e-cigarettes. Image provided by the Shiyan police.

 

In March 2023, staff members of the Tenyan Tobacco Sales Bureau discovered the sale of fruit-flavored e-cigarettes (pods) within the urban area. They immediately launched an investigation and identified Liu as a suspect for selling tobacco products without a license. Subsequently, they reported the matter to the police.

 

After receiving a report, the Economic Investigation Brigade of Dongyue Sub-bureau proceeded to initiate a formal investigation into Liu's case. On April 20th, the specialized police officers apprehended Liu and his superior, Xiang, inside a residential property in Wuhan, where they were engaged in a transaction. A total of over 40,000 counterfeit e-cigarette pods and 136 smoking accessories were seized at the scene.

 

After the arrest of two individuals, the police successfully identified two subordinate distributors and their superior, Wu Mou, located in Wuxi, Jiangsu Province through interrogations and investigative analysis. In order to gather further evidence against Wu Mou, the specialized police team conducted on-site investigations in Wuxi. Ultimately, six suspects involved in illegal business activities, with Wu Mou as the leader, were apprehended. Additionally, three shops and three storage locations under their names were searched, resulting in the seizure of over 20,000 counterfeit e-cigarette pods and one transportation vehicle.

 

In a situation where Wu was extremely uncooperative, the investigating police analyzed and assessed the logistics and financial flows they had already obtained. As the evidence chain became clearer, Wu's psychological defenses were gradually breached, and he confessed to the process of contacting Feng and Qiu to obtain goods.

 

As a result, the task force immediately traveled to Dongguan to carry out an investigation, successfully identifying several suspected criminals, including Feng and Qiu. However, no finished fruit-flavored e-cigarette (pod) products were found at the production site. After more than two months of investigation, the police gradually unraveled information regarding the organization structure and production patterns of the criminal gang.

 

On July 26th, under the careful coordination of the public security authorities and tobacco department in multiple locations, the special task force of the Dongyue Sub-bureau and staff from the tobacco department carried out simultaneous operations in Dongguan, Zhongshan, and Zhanjiang, Guangdong. They successfully arrested two suspects involved in the case, dismantled three e-cigarette manufacturing sites, and shut down two storage and distribution centers. This operation effectively disrupted the entire supply chain of e-cigarette production, sales, and raw material processing related to this case.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Product | BAT Japan Launches virto Bright Peach Click in Japan, Expanding glo Hilo’s Capsule-Based Flavor Portfolio
Product | BAT Japan Launches virto Bright Peach Click in Japan, Expanding glo Hilo’s Capsule-Based Flavor Portfolio
British American Tobacco Japan (BAT Japan) has introduced virto Bright Peach Click, a new heated tobacco stick designed for the glo Hilo system. The product expands the existing virto consumable lineup with a combination of tobacco, menthol and ripe peach flavors, featuring a capsule mechanism that releases additional fruit flavor when activated. The product launched in Japan on July 27, 2026, through glo official online channels, convenience stores and tobacco retailers.
Aug.03
U.S. Ninth Circuit Upholds FDA Denial of MH Global’s Flavored Vape PMTA Applications
U.S. Ninth Circuit Upholds FDA Denial of MH Global’s Flavored Vape PMTA Applications
The U.S. Court of Appeals for the Ninth Circuit upheld the FDA’s denial of MH Global LLC’s applications to market flavored electronic nicotine delivery systems (ENDS). The court ruled that FDA’s comparative-efficacy framework, which requires applicants to show that flavored products provide greater cessation or switching benefits than tobacco-flavored alternatives, is consistent with the Tobacco Control Act’s “appropriate for the protection of the public health” standard. The court also found that FDA was not required to establish the framework through notice-and-comment rulemaking.
Aug.26
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
AIR’s first half-year results as a listed company offer a new test of how far a traditional hookah business can transform. H1 2026 revenue rose 3.7%, even as Flavored Shisha Molasses shipments fell 9%, with pricing and mix supporting growth. Traditional shisha still generates almost all revenue, while OOKA, Crown Switch, Greentank and U.S. regulatory spending point to accelerating diversification. The next test is whether those investments can become a second business of meaningful scale and profitability.
Capital Markets
Aug.21
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-listed vape company iSpire Technology has restructured its leadership team, with Tuanfang Liu becoming the company’s sole chief executive officer (CEO) and Michael Wang appointed CEO of Aspire North America. The move ends iSpire’s previous co-CEO structure and creates clearer responsibilities between group strategy and regional execution. Separately, BTIG initiated coverage on iSpire Technology with a Buy rating and a $3.50 price target, identifying ODM growth opportunities as a key investment factor.
Jul.27
BAT’s Velo Study Finds 61% of Nicotine Users Feel More Comfortable Expressing Themselves When Others Do the Same
BAT’s Velo Study Finds 61% of Nicotine Users Feel More Comfortable Expressing Themselves When Others Do the Same
British American Tobacco’s (BAT) nicotine pouch brand Velo has released a global consumer study and launched its “Echoes of Tomorrowland” campaign with electronic music festival brand Tomorrowland. The research surveyed 2,009 nicotine users across the UK, Spain, Pakistan, Poland and Austria. Velo said 61% of respondents feel more comfortable expressing themselves when they see others doing the same, while 39% said building meaningful connections becomes harder with age. The campaign reflects how nicotine pouch brands are increasingly using music, communities and lifestyle marketing to build consumer engagement.
Aug.10
UK Vape Tax Countdown: Retailer Vape HQ Estimates 100ml E-liquid Prices Could Rise From £12.99 to £39.39, While Pod Kits Increase Less Than 10%
UK Vape Tax Countdown: Retailer Vape HQ Estimates 100ml E-liquid Prices Could Rise From £12.99 to £39.39, While Pod Kits Increase Less Than 10%
The UK’s Vaping Products Duty (VPD), scheduled to take effect in October 2026, is prompting retailers to assess how different vape categories may be affected. UK retailer Vape HQ has estimated potential price changes under the new volume-based tax system, showing that 100ml shortfill e-liquids could see prices rise from around £12.99 to £39.39, a 203% increase, while 2ml prefilled pod vape kits could rise from £5.99 to £6.52, an increase of about 9%. The estimates highlight how a volume-based tax structure creates uneven cost impacts across product categories.
Aug.19