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

FDA Grants PMTA Authorization to 11 ZYN ULTRA Nicotine Pouches, Bringing Total Authorized Pouches to 43
FDA Grants PMTA Authorization to 11 ZYN ULTRA Nicotine Pouches, Bringing Total Authorized Pouches to 43
The U.S. Food and Drug Administration authorized 11 ZYN ULTRA nicotine pouch products made by Swedish Match USA through the premarket tobacco product application pathway on August 21, 2026. Ten of the authorized products have a labeled nicotine content of 9 mg, while ZYN ULTRA Smooth was authorized at 11 mg. The reviews were conducted through FDA’s nicotine pouch PMTA pilot program. FDA has now authorized 43 nicotine pouch products, including 23 through the pilot.
Aug.24
FRE and ALP Push Modern Oral to 48% of Q2 Sales as Turning Point Brands Changes CEO and Lowers Profit-Guidance Ceiling
FRE and ALP Push Modern Oral to 48% of Q2 Sales as Turning Point Brands Changes CEO and Lowers Profit-Guidance Ceiling
Turning Point Brands said Executive Chairman David E. Glazek will become CEO on October 1, replacing Graham Purdy, who is stepping down for personal reasons. The company narrowed its 2026 adjusted EBITDA outlook to $70 million-$80 million from $70 million-$90 million while maintaining Modern Oral gross sales guidance of $330 million-$350 million and net sales guidance of $260 million-$270 million. In the second quarter, Modern Oral net sales rose 128% to $68.4 million and accounted for 48% of company-wide net sales. Adjusted EBITDA fell 50% year over year. TPB shares closed about 10% lower on September 21.
Market
Sep.22 by 2Firsts Perspectives
JTI Invests ₱2.1 Billion to Upgrade Batangas Manufacturing Hub, Adds First Southeast Asia DIET Facility
JTI Invests ₱2.1 Billion to Upgrade Batangas Manufacturing Hub, Adds First Southeast Asia DIET Facility
JTI Asia Manufacturing Corp. has invested ₱2.1 billion, or about $37 million, in its manufacturing site in Malvar, Batangas, Philippines, to expand tobacco-processing capabilities. About ₱1.9 billion is allocated to JTI's first Dry Ice Expanded Tobacco, or DIET, facility in Southeast Asia, while more than ₱177 million has been spent on expanding its Controlled Atmosphere treatment facility. The Batangas plant supplies the Philippine market and exports to 22 overseas markets, making it one of JTI's key manufacturing hubs in Asia.
Sep.24
From Nicotine Salts to Cocrystals: China’s Shenzhen Huabao institute explores a more stable form for sustained nicotine release
From Nicotine Salts to Cocrystals: China’s Shenzhen Huabao institute explores a more stable form for sustained nicotine release
China-based Shenzhen Huabao Collaborative Innovation Technology Research Institute Co., Ltd. has filed a patent application for a nicotine-ascorbic acid cocrystal, exploring a new solid-state form of nicotine. The patent proposes applications across e-liquids, heated tobacco sticks, oral tobacco, chewing tobacco and snuff. In nicotine pouch tests disclosed in the filing, cocrystal formulations showed less than a 6% decline in nicotine content after three months of accelerated storage and a release profile combining early-stage release with sustained delivery over 60 minutes. The filing reflects exploration of nicotine forms beyond conventional nicotine base and nicotine salts.
Aug.13
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup’s 2026 Consumption Habits survey tracked nicotine pouch use for the first time. The survey found that 11% of U.S. adults reported smoking cigarettes in the past week, 9% reported vaping, and 4% reported using nicotine pouches. Cigarette smoking remained near Gallup’s long-term low, while adult vaping rates stayed relatively stable in recent years.
Market
Aug.25 by 2Firsts Perspectives
PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
IQOS opened its first global flagship, IQOS Flagship Ginza, in Tokyo on September 4, 2026, replacing the former IQOS Store Ginza after nearly a decade of operation. The new location expands conventional product retail into member lounges, digital experiences, art installations and brand programming. IQOS also launched a Ginza-exclusive IQOS ILUMA i PRIME set limited to 1,814 individually numbered units, priced at JPY11,980, or about US$77. PMI Sales Strategy Consultant Yuji M. later said on LinkedIn that more than 500 people had lined up from the night before the opening.
Sep.07