SHANGHAI (Reuters) – China’s market regulator on Tuesday unveiled technical standards for e-cigarettes which will go into effect starting October 1.
In a public document, the State Administration for Market Regulation listed the requirements for design, chemical compounds, and the mechanics for e-cigarettes that domestic manufacturers must meet in order to sell their products.
The release of the standards marks another milestone for China’s e-cigarette industry.
The country produces an overwhelming majority of e-cigarettes sold domestically and worldwide.
However, at home, it has operated for years in a regulatory grey area, while the influence of China’s state-owned tobacco monopoly has loomed large over the sector.
In March, tobacco authorities issued a finalised version of rules that stipulate other requirements for e-cigarette companies in China.
Most notably, the rules state that e-cigarette companies may only sell their products through authorised channels, and also bar vendors from selling e-cigarette flavours other than tobacco.
The rules have brought chaos to the sector.
Shares in Smoore International Holdings Ltd, one of China’s top e-cigarette vendors, have fallen almost 70% since the first draft rules were published in December 2021.
RLX Technology Inc, China’s top e-cigarette brand, has seen its share price fall by roughly 50% over the same time period.
(Reporting by Josh Horwitz; editing by Jason Neely)
