5 Key Measures: China’s Strict Control Over Vaping Manufacturers and Sellers

In a significant move to regulate the vaping industry, China has revised its tobacco laws, placing vaping manufacturers and sellers under the strict jurisdiction of the State Tobacco Monopoly Administration (STMA). This development, led by the State Council and approved by Premier Keqiang Lee, was announced on the 25th of last month and came into immediate effect. This move is aimed at tightening government supervision over the vaping sector.

Understanding the Impact on Chinese Vaping Market

According to the World Health Organization, more than half of Chinese men smoke cigarettes, with 26.6% of all adults being smokers. The number of smokers in China is nearly equivalent to the entire population of the United States, exceeding 300 million. In 2018, cigarette tax revenue accounted for 5.45% of all Chinese tax revenue. The growth of the Chinese vaping market could be seen as a threat to these substantial tobacco tax revenues.

Regulatory Measures and Online Sales Ban

Since 2019, China has banned online sales of vaping products. With STMA’s increased control, more limitations are expected. STMA strictly regulates competition in the China Tobacco Market, and the new policy allows STMA to manage Chinese vaping manufacturers under macro-control. The ultimate goal of the Chinese government aligns with the FDA’s Deeming Rule, which sets the stage for detailed regulations to follow.

Market Valuation and Growth

The domestic China Vaping product market is valued at 9.38 billion RMB (nearly $1.4 billion U.S.), as reported by the Global Times. The Chinese market has grown at a rate of over 70 percent each year between 2013 and 2020. With more than 170,000 vape businesses in the country, China produces almost all the vaping hardware sold around the world.

Draft Regulations and Future Influence

The influence of this revision on the vaping industry remains to be seen. In early 2019, China issued draft regulations that aimed to control every aspect of vape product and e-liquid manufacturing. However, these rules have not yet been implemented. The STMA’s increased jurisdiction over vaping manufacturers and sellers could lead to more stringent regulations and control over the vaping market, potentially affecting both domestic and global e-liquid manufacturing.

Macro-Control and its Effects

The macro-control measures by STMA are expected to have a profound impact on the vaping manufacturers. With the Chinese government’s focus on maintaining tax revenues from traditional tobacco products, the growth of the vaping market is being closely monitored. The STMA’s role in managing the vaping sector will likely result in a more regulated and controlled market, which could influence the global vaping landscape.

The revision of China’s tobacco laws and the increased control by the State Tobacco Monopoly Administration over vaping manufacturers and sellers mark a significant shift in the Chinese vaping market. This move could set the stage for more detailed regulations and have far-reaching effects on the global e-liquid manufacturing industry. As the world’s largest producer of vaping hardware, China’s actions will be closely watched by the international community.