State Tobacco Monopoly Administration: Strictly implement the requirements of the restrictive industrial policies on electronic cigarettes, and no new projects should be invested in or built.

The State Tobacco Monopoly Administration openly solicits opinions on the "Notice of the State Tobacco Monopoly Administration on Implementing the Policy of the Electronic Cigarette Industry to Further Promote the Dynamic Balance of Supply and Demand." The "Consultation Draft" proposes to regulate the investment behavior of enterprises related to electronic cigarettes. Strictly implement the restrictive industrial policy requirements for electronic cigarettes, prohibiting investment in new projects, and no increase in production capacity for relocation, reconstruction, and resumption projects. Generally, technology transformation projects at the original site should not increase production capacity. If there is a real need to increase production capacity, it should comply with the electronic cigarette industry policy, regulatory policies, and production capacity management regulations, have real market demand, and have matching safety, health, and environmental protection facilities, equipment, and technological conditions for production and operation. It should also meet the direction of intelligence, high-end, and greenization, and strictly follow the relevant requirements of the "Regulations on the Management of Fixed Asset Investment in Electronic Cigarettes." Enterprises mainly engaged in export sales should prove that the products produced by the new production capacity comply with the laws, regulations, and regulatory rules of the destination country or region. Enterprises related to the production of electronic cigarettes are not allowed to increase the number of production lines or capacity in violation of regulations, establish accessory production lines, entrust major production processes to unlicensed enterprises for processing, prohibit the expansion of production capacity in disguised form, and circumvent the approval of fixed asset investment.