State Tobacco Monopoly Administration: allow electronic cigarette related production enterprises that operate legally and compliantly to integrate and reorganize production capacity through methods such as merging production sites.

The State Tobacco Monopoly Administration solicits opinions on the "Notice of the State Tobacco Monopoly Administration on Implementing the Policy of the Electronic Cigarette Industry and Further Promoting the Balance of Supply and Demand." The "Draft for Soliciting Opinions" proposes strengthening the regulation of electronic cigarette production capacity. Insist on promoting the supply-side structural reform of the electronic cigarette industry based on market demand, coordinate enterprise equipment levels, business conditions, and industry trends, and implement electronic cigarette approved production capacity management in accordance with the principles of "fairness, openness, classified policy, and prudent and orderly manner". In principle, the approved electronic cigarette production capacity should remain basically stable, and electronic cigarette-related production enterprises should carry out production and operation within the approved production capacity, strictly prohibited from operating beyond the approved production capacity. Enterprises that need adjustment should apply for re-approval of production capacity and complete the permit handling procedures. Electronic cigarette-related production enterprises that operate legally and comply with industrial policy and regulatory policy regulations are allowed to integrate and restructure production capacity through methods such as merging production points to improve enterprise management efficiency and production capacity utilization.