CHINA
China plans new regulations on e-cigs

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

The Ministry of Industry and Information Technology (MIIT) and China’s State Tobacco Monopoly Administration have posted online the draft regulations that could potentially restrain a fast-growing industry.
Following Juul's success overseas, a number of Chinese e-cigarette companies have emerged in 2019, targeting the domestic market. The most successful among them, RLX Technology Inc, raised USD 1.4 billion in an initial public offering in January, valuing the company at USD 35 billion, the report said.
A big market of smokers and its large electronics industry make China a promising market for the e-cigarette industry. Yet the sector is in a precarious regulatory space.
China's tobacco industry is fully controlled by a state monopoly, and strict controls determine which companies and retailers can produce and sell cigarettes. According to the report, cigarette sales generated 5.45 per cent of China's total tax revenue in 2018. For this reason, industry experts have long expected the state to intervene in the operations of China's private e-cigarette companies.
In November 2019, Chinese regulators banned e-commerce platforms from selling e-cigarette products online. The ban has quickly stunted the industry's growth, with many brands shifting their business to offline sales, the report said.

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