China’s State Tobacco Monopoly Administration has released trial policy measures aimed at promoting the rule-of-law-based and standardized development of the e-cigarette industry.
According to Odaily, the document says the measures are based on the current state of the e-cigarette sector and aligned with national regional development strategies.
The regulator said it will guide the industry to moderately concentrate in regions with an existing industrial base and suitable conditions. It also called for stronger controls over raw material supply channels and for ensuring a reasonable supply of production materials.
The measures include adjusting and optimizing the industry structure, strictly controlling new production capacity, and keeping overall capacity at a reasonable scale to prevent overcapacity.
The document also said the industry should maintain a reasonable level of concentration, guided by resource allocation optimization and market demand, and that companies unable to adapt to market competition should exit in an orderly manner.
Catherine
