Shenzhen, China Cracks Down on E-Cigarette Violations as Cases Hit $163 Million

2Firsts, reporting from Shenzhen - China’s tobacco and e-cigarette regulator, the State Tobacco Monopoly Administration (STMA), published an article via its official outlet, Eastobacco, titled “Weaving the ‘Longitude and Latitude,’ Setting the ‘Pieces’ in Place—Shenzhen Tobacco Monopoly Bureau Strives to Advance the Modernization of E-Cigarette Regulation and Governance".

The article highlights efforts and achievements of the STMA Shenzhen in e-cigarette regulatory governance. 

Here are the key points.

1. The overall size of China's e-cigarette industry has been revealed.

"Shenzhen, a hub for the e-cigarette industry, is home to over 400 licensed e-cigarette manufacturers, accounting for 72% of the total number of licensed companies nationwide. 

"The e-cigarette market has now developed into a relatively mature industry system, encompassing various stages such as component manufacturing, atomizer production, finished product assembly, and distribution."

2. The number of cases involved and the amounts at stake have been disclosed.

Since November 10, 2021, when e-cigarettes were brought under tobacco control regulations, STMA Shenzhen, in collaboration with relevant departments, have handled 293 e-cigarette-related cases, including 207 criminal cases, with a total value of 1.163 billion yuan ($163.82 million). 

In comparison, RELX Technology, the parent company of the RELX brand, reported a revenue of 1.59 billion yuan ($222.6 million) for 2023.

3. The details of a high-profile case have been revealed.

A licensed company has been under investigation for selling illegally produced e-cigarette products and engaging in vaping operations beyond its authorized scope. The company was fined 3.15 million yuan ($441,000) and ordered to suspend operations for two months for business rectification.

In addition, it was reported that the Longgang District People's Procuratorate in Shenzhen initiated public prosecution in 2024 for the "12·06" illegal e-cigarette operation case, marking China’s first e-cigarette case where individuals were sentenced under the charge of illegal business operations.

This report is sourced from the official website of the Eastobacco. Relevant content should be verified with the original publication.

Related reading: State Tobacco Monopoly Administration Releases Typical Cases of E-Cigarette Law Enforcement.