State Tobacco Monopoly Administration: Promote the balance of supply and demand in the electronic cigarette market, effectively prevent and resolve the risks of disorderly competition in the market.

On December 25th, the State Tobacco Monopoly Administration publicly solicited opinions on the "Notice of the State Tobacco Monopoly Administration on Implementing Policies for the Electronic Cigarette Industry to Further Promote Supply and Demand Dynamic Balance (Draft for Soliciting Opinions)." The draft proposed to promote the balance of supply and demand in the electronic cigarette market. It emphasized the need for effective market coordination and proactive government support, determining annual production scale within approved capacity limits as the enterprise's annual production and sales target. Based on market demand and other factors, adjustments to production scale for electronic cigarette-related enterprises would be made to prevent and mitigate risks of market disorderly competition. Strict implementation of overall production scale control would be implemented, with classification-based policies and rigorous scrutiny of production scale adjustments. For enterprises located in regions with a strong foundation in the electronic cigarette industry, it would be allowed to consolidate production and residence to the same location. Strengthened supervision of electronic cigarettes would be carried out, with strict limitations imposed on high-risk market entities, focusing on verification and control and enforcement against illegal activities such as backflow of exports, false customs declarations, and substandard product quality and safety. Electronic cigarette-related enterprises were urged to fulfill their responsibilities as main entities, enhance compliance infrastructure, and ensure compliance at every stage of the export trade chain. For full text, please refer to the source.