China mulls bringing e-cigarette regulation in line with traditional tobacco products

Two of China’s regulators plan to bring the rules governing the sale of e-cigarettes and other new tobacco products in line with those for ordinary cigarettes.

The Ministry of Industry and Information Technology and China’s State Tobacco Monopoly Administration posted online the draft regulations that could potentially curb a fast-growing industry.

In 2019, a string of Chinese e-cigarette companies emerged targeting the domestic market, following the overseas success of the Juul. The most successful among them, RLX Technology Inc, raised US$1.4 billion in an IPO in January that valued the company at US$35 billion.

RLX Technology did not immediately respond to a request for comment.

A huge market of smokers and its large electronics-manufacturing industry make China a promising market for the e-cigarette industry. Yet the sector exists in precarious regulatory area.

China’s tobacco industry is controlled entirely by the government, and strict controls determines what companies and retailers can produce and sell cigarettes.

Cigarette sales generated 5.45 percent of China’s overall tax revenue in 2018. Industry experts have long expected the state to intervene in the business operations of private e-cigarette companies.