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While EVE Energy， a company based in Guangdong Province， sees potential in the lithium battery business as the electric vehicle sector continues to grow， the future for its e-cigarette brand isn’t looking so good. In May， the National Health Commission （NHC） and the World Health Organization （WHO） China Office issued the China Report on the Health Hazards of Smoking， which suggested that ecigarettes are not safe alternatives to traditional tobacco and can pose health risks. It was the first official document that came to such a conclusion in China.
The authorities then issued further guidelines on June 18， highlighting the need for the improved supervision of e-cigarette sales.
E-cigarettes， originally introduced to help people quit smoking， generally use an electronic atomization system to transform liquid containing nicotine into vapor. There are also non-burn cigarettes that heat processed tobacco. Their flashy appearance， diverse flavors and convenience of use have attracted an increasing number of consumers， who want to reduce the use of traditional tobacco or just try something new.
Nevertheless， e-cigarette liquid is artificially blended with complex compositions， some of which are quite harmful to health after heating. Some e-cigarettes without clear labeling of nicotine content can lead to overdose and poorly designed devices can even pose risks such as scalding or battery fires， according to Mao Qun’an， Director of the Planning Department of the NHC.
The Chinese Government has been stepping up its supervision of the industry in recent years. In August 2018， the State Tobacco Monopoly Administration and the State Administration for Market Regulation introduced a ban on selling vaping products to those aged under 18. Online sales and advertisements of e-cigarettes were also banned by the two agencies in November 2019. Cities such as Hangzhou in Zhejiang Province， Shenzhen in Guangdong and Chongqing have announced a ban on the use of e-cigarettes in public places and indoor workplaces.
Despite tightening supervision， e-cigarettes are still sold under false names online， allowing underage people， who cannot purchase traditional tobacco products in physical stores， to gain access to them. “Young people may get addicted to smoking after trying e-cigarettes and turn to traditional tobacco after their addiction gets worse，” Ma Liang， a researcher with the National Academy of Development and Strategy at Renmin University of China， said. Over 40 countries and regions worldwide have promulgated some form of legislation concerning the sale of e-cigarettes， with some imposing the same regulations on e-cigarettes as on traditional tobacco products and others completely banning them.
In March， the Ministry of Industry and Information Technology and the State Tobacco Monopoly Administration also proposed regulating e-cigarettes in line with current Chinese standards for traditional tobacco products， saying they are similar in nature and method of consumption.
Substandard e-cigarettes and a lack of industrial standards and regulations remain another major problem. Some e-cigarette manufacturers use low-quality raw materials and toxic additives； poor design processes and quality control create serious safety hazards， Xinhua News Agency reported in November 2019. “The authorities need to formulate laws and regulations on e-cigarettes and improve supervision on the quality of tobacco juices and heating elements of e-cigarettes，”Zhuang Runsen， Executive Vice President of the Shenzhen Tobacco Control Association， said.
China’s e-cigarette industry dates back to 2003. Huge profits have drawn many companies in. The country now has over 170，000 e-cigarette manufacturers and 1，000 brands， mostly based in Guangdong. Last year， more than 18，000 new enterprises were established.
“Despite the impacts of the report on vaping hazards and tightened regulations， the e-cigarette industry in China still shows growth potential. New standards will soon be introduced to ensure its sound development，” Ao Weinuo， Secretary General of the Electronic Cigarette Industry Committee under China Electronics Chamber of Commerce， said.
Data from market consultancy iiMedia Research showed that China’s e-cigarette market was valued at 8.33 billion yuan （$1.28 billion） at the end of 2020 and could exceed 10 billion yuan （$1.5 billion） this year. Currently， less than 1 percent of Chinese smokers vape， and many domestically produced e-cigarettes are exported. While there are high-end e-cigarettes， bargains at the bottom end can cost less than 50 yuan （$7.7） per set.
Homegrown brands such as RELX， MOTI and YOOZ have seen steady sales growth. The business of e-cigarette accessory producers such as Intretech， has also expanded significantly over the past few years.
Established in 2017， RELX has shown notable development. According to RLX Technology based in Shenzhen， owner of the brand， the company’s output has risen about 160-fold since it started mass production in April 2018. It has opened more than 5，000 franchise stores and sold its products in over 100，000 retail outlets across China as of September 2020. While it has occupied 44 percent of the domestic market， the company sells its products in over 40 countries. In January， it was listed on the New York Stock Exchange.
According to the NHC-WHO report， there are over 300 million smokers in China. Among the population aged 15 or above， 26.6 percent are tobacco users.
Over 1 million people die of tobacco-related diseases in China every year， and the number is likely to rise to 2 million per year by 2030 and 3 million by 2050， the report said. It continued that recent global research findings showed that smoking and secondhand smoke exposure can lead to diseases including chronic respiratory diseases， malignant tumors， cardiovascular diseases and diabetes.
According to Ma， smoking cannot be banned in China in the short term. To reduce the harm caused by secondhand smoke exposure， authorities can encourage smokers to turn to alternatives to reduce their tobacco use， such as safer e-cigarettes.
In October 2016， Chinese authorities released the Healthy China 2030 initiative， which proposed to reduce the proportion of smokers aged 15 or above in the total population to 20 percent by 2030.
“E-cigarettes are a double-edged sword. With more research and further regulations， improved vaping products with low levels of nicotine may contribute to reducing tobacco harm to smokers and people exposed to secondhand smoke，” Ma said. BR
The authorities then issued further guidelines on June 18， highlighting the need for the improved supervision of e-cigarette sales.
E-cigarettes， originally introduced to help people quit smoking， generally use an electronic atomization system to transform liquid containing nicotine into vapor. There are also non-burn cigarettes that heat processed tobacco. Their flashy appearance， diverse flavors and convenience of use have attracted an increasing number of consumers， who want to reduce the use of traditional tobacco or just try something new.
Nevertheless， e-cigarette liquid is artificially blended with complex compositions， some of which are quite harmful to health after heating. Some e-cigarettes without clear labeling of nicotine content can lead to overdose and poorly designed devices can even pose risks such as scalding or battery fires， according to Mao Qun’an， Director of the Planning Department of the NHC.
Improving regulation
The Chinese Government has been stepping up its supervision of the industry in recent years. In August 2018， the State Tobacco Monopoly Administration and the State Administration for Market Regulation introduced a ban on selling vaping products to those aged under 18. Online sales and advertisements of e-cigarettes were also banned by the two agencies in November 2019. Cities such as Hangzhou in Zhejiang Province， Shenzhen in Guangdong and Chongqing have announced a ban on the use of e-cigarettes in public places and indoor workplaces.
Despite tightening supervision， e-cigarettes are still sold under false names online， allowing underage people， who cannot purchase traditional tobacco products in physical stores， to gain access to them. “Young people may get addicted to smoking after trying e-cigarettes and turn to traditional tobacco after their addiction gets worse，” Ma Liang， a researcher with the National Academy of Development and Strategy at Renmin University of China， said. Over 40 countries and regions worldwide have promulgated some form of legislation concerning the sale of e-cigarettes， with some imposing the same regulations on e-cigarettes as on traditional tobacco products and others completely banning them.
In March， the Ministry of Industry and Information Technology and the State Tobacco Monopoly Administration also proposed regulating e-cigarettes in line with current Chinese standards for traditional tobacco products， saying they are similar in nature and method of consumption.
Substandard e-cigarettes and a lack of industrial standards and regulations remain another major problem. Some e-cigarette manufacturers use low-quality raw materials and toxic additives； poor design processes and quality control create serious safety hazards， Xinhua News Agency reported in November 2019. “The authorities need to formulate laws and regulations on e-cigarettes and improve supervision on the quality of tobacco juices and heating elements of e-cigarettes，”Zhuang Runsen， Executive Vice President of the Shenzhen Tobacco Control Association， said.
A lucrative market
China’s e-cigarette industry dates back to 2003. Huge profits have drawn many companies in. The country now has over 170，000 e-cigarette manufacturers and 1，000 brands， mostly based in Guangdong. Last year， more than 18，000 new enterprises were established.
“Despite the impacts of the report on vaping hazards and tightened regulations， the e-cigarette industry in China still shows growth potential. New standards will soon be introduced to ensure its sound development，” Ao Weinuo， Secretary General of the Electronic Cigarette Industry Committee under China Electronics Chamber of Commerce， said.
Data from market consultancy iiMedia Research showed that China’s e-cigarette market was valued at 8.33 billion yuan （$1.28 billion） at the end of 2020 and could exceed 10 billion yuan （$1.5 billion） this year. Currently， less than 1 percent of Chinese smokers vape， and many domestically produced e-cigarettes are exported. While there are high-end e-cigarettes， bargains at the bottom end can cost less than 50 yuan （$7.7） per set.
Homegrown brands such as RELX， MOTI and YOOZ have seen steady sales growth. The business of e-cigarette accessory producers such as Intretech， has also expanded significantly over the past few years.
Established in 2017， RELX has shown notable development. According to RLX Technology based in Shenzhen， owner of the brand， the company’s output has risen about 160-fold since it started mass production in April 2018. It has opened more than 5，000 franchise stores and sold its products in over 100，000 retail outlets across China as of September 2020. While it has occupied 44 percent of the domestic market， the company sells its products in over 40 countries. In January， it was listed on the New York Stock Exchange.
Next priority
According to the NHC-WHO report， there are over 300 million smokers in China. Among the population aged 15 or above， 26.6 percent are tobacco users.
Over 1 million people die of tobacco-related diseases in China every year， and the number is likely to rise to 2 million per year by 2030 and 3 million by 2050， the report said. It continued that recent global research findings showed that smoking and secondhand smoke exposure can lead to diseases including chronic respiratory diseases， malignant tumors， cardiovascular diseases and diabetes.
According to Ma， smoking cannot be banned in China in the short term. To reduce the harm caused by secondhand smoke exposure， authorities can encourage smokers to turn to alternatives to reduce their tobacco use， such as safer e-cigarettes.
In October 2016， Chinese authorities released the Healthy China 2030 initiative， which proposed to reduce the proportion of smokers aged 15 or above in the total population to 20 percent by 2030.
“E-cigarettes are a double-edged sword. With more research and further regulations， improved vaping products with low levels of nicotine may contribute to reducing tobacco harm to smokers and people exposed to secondhand smoke，” Ma said. BR