State Tobacco Monopoly Administration: Resolve and prevent risks of overcapacity strictly enforce relevant laws and regulations, e-cigarette industry policies, and mandatory standards.

The State Tobacco Monopoly Bureau has issued a notice on implementing the policy of the electronic cigarette industry to further promote the dynamic balance of supply and demand. It mentions the resolution and prevention of overcapacity risks. Adhering to the principles of rule of law and marketization, the excess capacity exit mechanism should be unblocked. Strict enforcement of relevant laws and regulations, electronic cigarette industry policies and mandatory standards, for enterprises that do not comply with industry policies, have product quality, hygiene conditions, safety production, fire protection, environmental protection, and energy consumption that do not meet national standards and produce and sell unqualified products, they shall be eliminated according to law and regulations. For enterprises with long-term lower capacity utilization than the average capacity utilization rate of the electronic cigarette industry or with illegal acts, they shall be included in the key supervision scope, gradually eliminate outdated production lines and reduce corresponding production capacity. Improve the electronic cigarette standard system covering product standards, material limits, production processes, inspection and testing, quality and safety, hygiene conditions, storage and transportation, strengthen accreditation certification and inspection and testing capacity building, and continuously optimize the production structure through constant revision of technical standards, licensing conditions, and other measures. The production line and approved capacity of heated tobacco products should be strictly distinguished from electronic cigarettes, and capacity should not be mixed or double-counted.