Meituan Denies Exiting Vaping: Business Scope and Plans Unchanged

On October 11, reporters noticed that Meituan's main operating entity, Beijing Sankuai Technology Co., Ltd., had changed its business scope, and retail tobacco (including e-cigarettes) was no longer included.

In response, Meituan told the Beijing News that, “Proactively updating the business scope on our business license at appropriate times is a routine part of day-to-day corporate operations. Our business scope and plans have not changed.”

At the end of July, corporate registration information from Qichacha showed that the business scope of Meituan's operating entity, Beijing Sankuai Technology Co., Ltd., had been changed to add businesses including retail tobacco (including e-cigarettes). At the time, Meituan responded, “In accordance with national laws, regulations, and newly introduced policies, we update the wording of the company's business scope when appropriate. This is a normal corporate registration practice.”

On August 29, Tsinghua University released the Report on E-cigarette Industry Regulation (2019), part of its Research Report on Public Health and Technology Regulation. The report showed that China is the world's largest producer and exporter of vaping products. Capital investment has further accelerated the rise of this booming sector. China now has thousands of vaping companies, and new brands are emerging almost every day. Some leading companies in the industry have already reached valuations of more than US$2 billion. At the same time, the industry has created jobs for about 2 million people. In Shenzhen and Dongguan, Guangdong, many contract manufacturers that once produced mobile phones and drones have fully shifted to vaping products.

It is worth noting that, according to a recent report by The Washington Post, the U.S. Centers for Disease Control and Prevention (CDC) identified at least 193 cases of severe lung illness in 22 states that may be related to e-cigarettes, with one patient having died.

After the White House announced on September 11 that it would introduce a sales ban on flavored e-cigarettes, Alibaba and JD.com announced on October 9 that they would suspend sales of e-cigarettes to U.S. buyers in order to comply with local U.S. policies tightening control over e-cigarettes.