China's Tobacco Monopoly Will Control the Vaping Industry

[Vapeon4Life]

"China has amended its laws so that vaping manufacturers and sellers fall under the authority of the country’s State Tobacco Monopoly Administration (STMA). The industry will now be tightly controlled by the authoritarian government’s regulators.........

China banned online sales of vaping products in 2019, and regulation by the STMA will likely bring more restrictions. The regulatory agency strictly controls which products can compete in the Chinese tobacco marketplace, and the new rules will allow the STMA to micromanage vaping manufacturers the same way. What has been announced is essentially the Chinese equivalent of FDA’s Deeming Rule: it sets the stage for the detailed regulations that will follow.

The domestic Chinese vaping product market is valued at 8.38 billion yuan (about $1.3 billion U.S.), according to the Global Times. The newspaper says the Chinese market grew at a rate of over 70 percent each year between 2013 and 2020. According to Shanghai Daily, the vaping industry provides three million jobs in the country, and vaping exports are valued at $15.6 billion (U.S.). Chinese research firm iiMedia says there are more than 170,000 e-cigarette businesses in the country, which produce almost all the vaping hardware sold around the world..........."

China's Tobacco Monopoly Will Control the Vaping Industry

 

[WorksForMe]

Here is Alex Norcia's take on this. It looks like China is going to ban everything except closed system pod mods with 20mg/ml max nic. They don't say if the new rules are just for China's domestic market, or if they include products that are exported to the rest of the world.

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[zoiDman]

"In a global context, public health regulators always tend to trust and approve products made by market leaders with technological edge for reliability backed by scientific evidence. For instance, in the US, British America Tobacco and Altria are the only two companies whose products have been granted premarket tobacco application (PMTA) approval by the Food and Drug Administration (FDA). China’s State Tobacco Monopoly Administration also requires all e-cigarettes sold in China to be registered and vaping companies to submit scientific evidence on product safety.

However, [China's] new draft rules have little impact on exported e-cigarettes, as long as they comply with the laws, regulations and standards of destination countries. Therefore, it is relatively favorable to the vaping companies whose overseas markets account for the majority of revenue."

Bluehole publishes a feature story on China’s recent vaping regulations - ANTARA News

I could Envision the above to be True.

Domestic Products sold in China must Comply with Taxes and Regulations. Products Exported must Comply with Taxes and the Destinations Country's Regulations.

The Problem, of course, is the USA's Regulations are effectively a Ban when something is a "Tobacco Product". And Virtually No Regulations when something Isn't. So hard to say what will be what when a Customs Declaration list the contents of a package as "Filters"?

 

[Aerodan]

“However, the new draft rules have little impact on exported e-cigarettes, as long as they comply with the laws, regulations and standards of destination countries. Therefore, it is relatively favorable to the vaping companies whose overseas markets account for the majority of revenue.”

So imports continue, if the country allows them? Which means until the county stops them at the dock…

 

[zoiDman]

“However, the new draft rules have little impact on exported e-cigarettes, as long as they comply with the laws, regulations and standards of destination countries. Therefore, it is relatively favorable to the vaping companies whose overseas markets account for the majority of revenue.”

...

So imports continue, if the country allows them? Which means until the county stops then at the containers…

That is Kinda Dependent on How One Reads the Chinese Regulations.

Some will Argue that if it Isn't Legal for a Chinese Company to ship something to the US, then it Shouldn't be in a Shipping Container in the 1st Place. And that is what these Regulations are supposed to be Cleaning Up.

Other will say that what Happens outside of China isn't really China's concern. As long as the Party gets their Slice of the Profits.

This statement is Problematic when it comes to Exports as usual... "However, the new draft rules have little impact on exported e-cigarettes, as long as they comply with the laws, regulations and standards of destination countries."

I Don't know what it is Like in China? But I have heard that you Don't want to Step Over some lines. Where Exactly those Line will be when it comes to "e-Cigarettes" are Anyone's guess?

 

[Vapeon4Life]

That is Kinda Dependent on How One Reads the Chinese Regulations.

Some will Argue that if it Isn't Legal for a Chinese Company to ship something to the US, then it Shouldn't be in a Shipping Container in the 1st Place. And that is what these Regulations are supposed to be Cleaning Up.

Other will say that what Happens outside of China isn't really China's concern. As long as the Party gets their Slice of the Profits.

This statement is Problematic when it comes to Exports as usual... "However, the new draft rules have little impact on exported e-cigarettes, as long as they comply with the laws, regulations and standards of destination countries."

I Don't know what it is Like in China? But I have heard that you Don't want to Step Over some lines. Where Exactly those Line will be when it comes to "e-Cigarettes" are Anyone's guess?

Seems to me there has been a lot said about Chinese patent infringement - And unless they have suddenly had a see the light moment on ecigs, I really don't think they will give a dam about what they can profit off of in the US - Unless it starts to cost more money to do so than they can make. 'Clever, these Chinese' as the saying goes.

You can bet there are entrepreneurs in the US waiting to step in if China stops - hopefully legally.

 

[zoiDman]

Seems to me there has been a lot said about Chinese patent infringement - And unless they have suddenly had a see the light moment on ecigs, I really don't think they will give a dam about what they can profit off of in the US - Unless it starts to cost more money to do so than they can make. 'Clever, these Chinese' as the saying goes.

You can bet there are entrepreneurs in the US waiting to step in if China stops - hopefully legally.

The Problem is any given Issue(s), like Intellectual Properties or FDA Regulations, isn't evaluated or pursued in Singularity.

They are tied to Bigger, Broader Concepts. Like Import/Export Trade Contracts. Or the Amount of US Debt China is willing to Buy. Or what is going on in Hong Kong or the China Sea.

Maybe China takes a Look the Other Way approach to Exported e-Cigarettes because it is Good For China Companies? Or Maybe they take a Hard Line because the US wants them to and is willing to Export China something at a Lower than Market Rate? Or something that is Dependent on 27 other Individual Parameters?

It's just Very Hard to Evaluate what Chinese Companies or China is Doing. Because there is a Very Vague line many times between the two.

 

[WorksForMe]

That is Kinda Dependent on How One Reads the Chinese Regulations.

Some will Argue that if it Isn't Legal for a Chinese Company to ship something to the US, then it Shouldn't be in a Shipping Container in the 1st Place. And that is what these Regulations are supposed to be Cleaning Up.

Other will say that what Happens outside of China isn't really China's concern. As long as the Party gets their Slice of the Profits.

This statement is Problematic when it comes to Exports as usual... "However, the new draft rules have little impact on exported e-cigarettes, as long as they comply with the laws, regulations and standards of destination countries."

I Don't know what it is Like in China? But I have heard that you Don't want to Step Over some lines. Where Exactly those Line will be when it comes to "e-Cigarettes" are Anyone's guess?

I would bet that if China doesn't stop their ecig companies from shipping to the U.S., the ANTZ organizations will sue our government to try to stop it.


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[zoiDman]

...

You can bet there are entrepreneurs in the US waiting to step in if China stops - hopefully legally.

No Really Seeing it.

It takes Semi and Skilled Labor to do Manufacturing. Something that is in Extremely Short Supply in America. Even at High Wages. And the Subsequent Overhead and CGS doesn't make American Made e-Cigarettes viable except Only to the High-End Niche Export Market.

 

[Vapeon4Life]

No Really Seeing it.

It takes Semi and Skilled Labor to do Manufacturing. Something that is in Extremely Short Supply in America. Even at High Wages. And the Subsequent Overhead and CGS doesn't make American Made e-Cigarettes viable except Only to the High-End Niche Market.

How many Japanese car manufacturers have manufacturing plants in the US, Mexico, and probably other places? Probably will cost more but I have no doubt China could manufacture vape gear in many places
- Unless local laws prevent it - I predict if this happens underground manufacturing will occur.

 

[Train2]

Seems to me there has been a lot said about Chinese patent infringement - And unless they have suddenly had a see the light moment on ecigs, I really don't think they will give a dam about what they can profit off of in the US - Unless it starts to cost more money to do so than they can make. 'Clever, these Chinese' as the saying goes.

You can bet there are entrepreneurs in the US waiting to step in if China stops - hopefully legally.

Wait, what?
All the U.S. Entrepreneurs already stepped OUT. You're talking about products that now illogically require an FDA approval that is impossible to achieve, and that you can't ship to a consumer.
Why would anyone enter that market now?

 

[Vapeon4Life]

Wait, what?
All the U.S. Entrepreneurs already stepped OUT. You're talking about products that now illogically require an FDA approval that is impossible to achieve, and that you can't ship to a consumer.
Why would anyone enter that market now?

WHY? - MONEY!!!!
Sure many will not, and you see how many retail vape dealers, big and small, have quit
- But I'm sure you've noticed how many are selling even without FDA approval ?

During alcohol Prohibition they had 'bathtub gin' literally made in the bathtub.
- the only question is how much money can the underworld make off of hybrid counterfeit vape device and liquids. As someone pointed out to me it will not be nearly as big as drugs - but the underworld is probably sill looking.

 

[Train2]

WHY? - MONEY!!!!
Sure many will not, and you see how many retail vape dealers, big and small, have quit
- But I'm sure you've noticed how many are selling even without FDA approval ?

During alcohol Prohibition they had 'bathtub gin' literally made in the bathtub.
- the only question is how much money can the underworld make off of hybrid counterfeit vape device and liquids. As someone pointed out to me it will not be nearly as big as drugs - but the underworld is probably sill looking.

Gotcha - yes, they are most certainly going to create a black market.
I mean, with a 350% tax on nicotine...lol. MOST people will just buy what's readily available (crap non-refillables/disposables from cigarette companies) - but others will find a back-door e-juice and nicotine source.

I was thinking more along the lines of hardware. Innovation in general - not just the U.S. - may continue, but at a FAR FAR slower pace, as so many people realized that their success would be blocked by regulations. Heck, you guys remember ProVape? (a ProVape magnet popped up while moving things in my office this week, lol). Solid profitable US Entrepreneurs with a bunch of employees - saw what was coming and closed shop. Dozens of others...hundreds if you count the folks who just opened vape shops...followed.