Tighter Rules: Shenzhen Requires Approval for New Vape Businesses

In just a few short years, e-cigarettes have become a hot new consumer trend. In the first half of this year alone, 14 vaping-related financing deals were completed in China, with a total value of 574 million yuan.

Although e-cigarettes are marketed as a “healthier and more environmentally friendly” alternative to smoking, many experts have pointed out that they still contain substances harmful to health and may more easily encourage teenagers to try smoking.

As a result, regulation of e-cigarettes is gradually tightening. In January this year, Hangzhou released the latest revised version of the Hangzhou Regulations on Smoking Control in Public Places; more recently, on June 27, Shenzhen amended the Shenzhen Special Economic Zone Smoking Control Regulations. Both regulations clearly state that e-cigarettes are included within the scope of smoking control.

On July 22, the Director General of the Planning Department of the National Health Commission emphasized that the harms associated with e-cigarettes should be taken seriously. Relevant authorities are currently conducting research on e-cigarettes and plan to regulate the vaping industry through legislation.

At present, newly registered companies in Shenzhen that intend to engage in e-cigarette business operations are already required to obtain approval, and no e-cigarette-related business may be carried out without permission.

In the screenshot, the business entity registration and filing information inquiry form from the Shenzhen Municipal Market Supervision Administration shows that a company’s general business scope includes the technology development and sales of digital electronic products and hardware tools. However, under licensed business items, it states that the development and sales of e-cigarettes and related products require approval and may only be carried out with the relevant approval documents. The inquiry form was printed on June 13 this year. It is still unclear exactly when this requirement took effect, but according to available information, e-cigarette-related business did not previously require a special operating license.
 
Shenzhen is known as the world’s e-cigarette capital, and roughly 90% of vaping products are manufactured there.