Road products will become part of the Chinese tobacco monopoly. This was announced by the Chinese government in November. Unconfirmed reports of a ban on open systems are now worrying entrepreneurs and users worldwide. At the same time, businesses are now hoping for a stable future.
From being something of a gray market in China, e-cigarettes, both hardware and e-liquid will in the future be regulated under the same standard as the Chinese tobacco monopoly. Chinese authorities are now collecting feedback on the upcoming proposal, which will have crucial implications for a market with a global turnover of over 20 billion crowns and above 40 million users worldwide.
"A milestone for the vejp industry"
Today, the Chinese e-cigarette market is made up of thousands of independent companies of varying sizes. This will reportedly continue to be the case in the future, but the decision raises both hopes and fears. According to SMOORE, the company behind the Vaporesso brand, the news is positive.
"The legal recognition of e-cigarettes is a milestone for the Chinese vejp industry as it eliminates the uncertainty about the future of the industry," says Frankie Chen, Global Head of PR for SMOORE, to Filter magazine. "Given China's role in the global supply chain, mandatory standard requirements will significantly improve product safety and lead to better products" says Frankie Chan.
Rumors of a ban on open systems
Exactly what is included in the proposal is not yet known. What is clear is that in future, companies operating on the market will have to register with the authorities, demonstrate financial stability and be part of a system for taxing and monitoring products. This is according to information from China Briefing and Reuters.
But according to data in various media restrictions on nicotine strength (20 mg/ml) are also included in the new legislation. There are reports that it will also require that nicotine comes from tobacco plants and that containers (tanks) cannot be filled with illegal substances. In practice, this would mean that so-called open systems would be illegal in China. However, this information is still unconfirmed. Open systems are, according to UK studies, the most effective and popular variant of e-cigarettes in terms of successful smoking cessation.
Affects supply in vejp shops
The Chinese e-cigarette industry accounts for a crucial part of the supply in the world's vejpshops. From sophisticated devices and tanks to simple disposable pods, everything is made in China. And according to John Dunne, Director General of the British Trade Association UKVIA China's legislation will have a major impact, both for businesses and consumers. And the developments are not all positive, he says.
"This will be particularly important in countries like the UK, the US and EU states where we already have comprehensive legislation. While clear laws can have positive effects on safety and reduce underage drinking, the proposal in its current form could have devastating consequences" says John Dunne to CGTN News
Exports 8 billion worth of cigarettes
The Chinese tobacco monopoly accounts for half of all cigarette sales in the world and closer 27% of the total of the adult population smokes. At the same time, the Chinese vejp industry has been at the heart of the rapid development of the electronic cigarette market over the past decade. Chinese companies exported nearly 8 billion worth of vejp products in 2020, according to the research firm E-cigIntelligence.
Unregulated until 2019
Until two years ago, the Chinese market was virtually unregulated, with the good graces of the authorities. Economic growth has simply taken precedence over regulation. 2019 banned Chinese authorities domestic online sales of e-cigarettes and e-liquid. However, it did not affect the export of the hardware, the part of sales focused on an international market. It is not yet clear how the proposed laws will affect exported goods.
Hoping for a long-term approach
The China Electronics Chamber of Commerce is now collecting input from industry stakeholders for the upcoming legislation. According to Chinese media reports, the new law will come into force in May 2022.
"We hope the legislation will preserve the viability of the industry while making the products safer and better in the long run," said Wang Shenyi, chairman of Shenzhen Shikai Technology in a cautious comment to CGTN News.
Concerns about higher prices
In the UK, where e-cigarettes are an official tool To reduce smoking, hardware prices are a sensitive issue. A starter kit can cost a lot and discourage many smokers from trying the products. Therefore, in the last year, several local authorities have started to distribute free e-cigarettes and e-liquid to smokers in economically vulnerable groups, to encourage them to quit smoking.
"E-cigarettes are the solution - not the problem"
According to John Dunne and UKVIA, demanding Chinese legislation could further drive up prices. UKVIA is one of many organizations now trying to influence Chinese authorities to think about upcoming legislation from a health perspective.
"Unnecessarily tough legislation can be costly. In the UK, we know that it is the smoke from cigarettes that kills, not the nicotine. We see e-cigarettes as a solution to the problems created by cigarettes. That's why our authorities are even looking at the possibility of print e-cigarettes on prescription. I hope that the Chinese legislation will take into account the consequences of too harsh legislation" says John Dunne to Tobaccocoreporter
