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Summary and Analysis of China’s Vape Industry in 2023

Electronic cigarettes are becoming a social hot spot, not only attracting numerous investors domestically, but also attracting the attention of foreign investors. With consumers pursuing the functionality, design, and taste of e-cigarettes, China’s e-cigarette industry has shown no urgency in 2018. Faced with the complex and ever-changing market landscape, the Chinese authorities have adopted a series of policies in legislative, non legislative, and market aspects to encourage the healthy development of the e-cigarette industry.
 
1、 Legislative aspects
(1) Improve laws and regulations
The development of e-cigarettes is still in its infancy. In order to promote the healthy development of the industry, government agencies have continuously improved and formulated relevant laws and regulations in recent years based on the actual needs of industry development. For example, in 2018, the National Drug Administration issued the “Regulations on the Management of the Purchase and Sales of Electronic Cigarettes and Related Products”, which regulated the electronic cigarette industry with a stricter management and assessment system.
(2) Implement tariff policies
China will also begin implementing a tariff policy on e-cigarettes, which aims to protect the country’s achievements, control foreign enterprise investment, improve the competitiveness of domestic enterprises, and prevent the balance of the e-cigarette industry from external competition. In addition, the Chinese government will adjust quality and safety standards for outsourced e-cigarette products to protect the rights and interests of consumers.
(3) Launch funding subsidy policies
In order to promote the healthy development of the electronic cigarette industry, the government has introduced funding subsidy policies in various aspects such as scientific research and financial support. For example, the Chinese government has launched the “Patent Promotion Policy” for e-cigarettes under implementation in 2018 to encourage outstanding small and medium-sized enterprises to play a more active role in the field of intellectual property innovation.
 
2、 Non legislative aspects
(1) Implement entry barriers
For the e-cigarette industry, health and safety are important factors that affect its development. Therefore, it is necessary for the government to establish industry qualification evaluation standards, incorporate the e-cigarette industry into the corresponding admission management system, and actively improve industry standards to protect consumer health and safety.
(2) Strengthen publicity and education
The development of e-cigarettes is gradually deepening its application. In order to use e-cigarettes more scientifically, the government should strengthen relevant publicity and education, raise users’ awareness of e-cigarettes, encourage users to use e-cigarettes reasonably, and reduce their impact on physical health.
 
3、 Market aspect
(1) Establish and improve regulatory mechanisms
With the rapid development of the electronic cigarette industry, the electronic cigarette market is constantly changing, with many unreasonable factors and significant risks. Therefore, the Chinese government is actively establishing a supervision mechanism to standardize the development of the electronic cigarette industry, strengthen management, prevent news from affecting legitimate enterprises, and protect the healthy development environment of the market.
(2) Strengthen market supervision
The electronic cigarette industry is related to the health status of consumers. Therefore, the government should implement the principles of fair and impartial supervision in the supervision process, conduct spot checks, promptly detect non compliant preparations, ensure effective market supervision, and contribute to consumer health.


Post time: Jun-07-2023