China regulator orders e-cigarette makers to halt new plants
February 17, 2026
A quality control worker checks a pods on the production line for the e-cigarette company Mystlabs at First Union, one of China's leading manufacturers of vaping products, on September 25, 2019 in Shenzhen, China. (Photo by Kevin Frayer/Getty Images)
China’s State Tobacco Monopoly Administration issued a notice on Friday (13 February) aimed at curbing price wars in the e-cigarette industry, directing manufacturers to address overcapacity by suspending investment projects and the building of new production plants.
“The capacity utilisation rate is at a high level,” the notice said, while warning e-cigarette makers against trying to skirt the instruction by building new facilities ostensibly for the production of other products that are in fact manufacturing e-cigarettes.
KEY DETAILS:
- Producers should only invest in new projects and increase production capacity if it is really necessary and/or they can prove the focus is on manufacturing e-cigarettes for export
- Notice prohibits e-cigarette makers from shifting supply quotas to other unlicensed companies and expanding production capacity by seeking fresh investment to make other products to disguise e-cigarette output
- E-cigarette makers are allowed to reorganise their production capacity through mergers
- The production line and approved production capacity of e-cigarettes should be strictly distinguished from heated cigarettes and smoking utensils
(Reuters)
