Shenzhen Moves to Include E-cigarettes in Smoking Control Rules—What Impact Will It Have on the Indu

On January 28, the "Shenzhen Special Economic Zone Smoking Control Regulations (Revised Draft for Public Consultation)" was published on the website of the Standing Committee of the Municipal People’s Congress for public comment. The draft includes vaping devices among the prohibited products, which has sparked extensive discussion within the industry.
 
On the morning of February 22, the director of the Education, Science, Culture, and Health Committee of the Standing Committee of the Shenzhen Municipal People’s Congress held a consultation meeting in Room 137 of the People’s Congress Office Building, Area A, Civic Center. The Secretariat of the Electronic Cigarette Committee of the China Electronics Chamber of Commerce was invited to attend. At the meeting, Secretary-General Ao Weinuo presented four key views on behalf of the vaping industry, hoping that this emerging industry would be viewed in an objective, scientific, and rational manner.

1. Vaping devices were invented by Chinese people, and more than 90% of the world’s vaping products are manufactured in Shenzhen, with the main export markets being the United States and Europe. This is a sunrise industry with a global footprint. The vaping industry has made certain contributions in generating foreign exchange through exports and providing employment opportunities. At present, it occupies only a very small share of the domestic market in China, and this emerging industry should be viewed objectively, scientifically, and rationally;

2. Vaping devices are heated atomization products and do not involve open flame combustion, so they do not present fire hazards. Their secondhand aerosol causes very little environmental pollution and poses very limited harm to the human body. They should therefore be classified separately and require further research and evaluation;

3. The industry expressed understanding of including vaping devices in smoking control regulations for public places and public transportation, and supported the prohibition of sales of vaping devices to minors under the age of 18;

4. Regarding the scope of vaping-related smoking control, it was suggested that when revising smoking control legislation, the scope and enforcement intensity should be moderated and smoking control venues should be categorized. The authorities should listen to views from all sides, make comprehensive considerations, fully weigh the matter, and avoid a one-size-fits-all approach.

On April 23, the "Draft Amendment to the Shenzhen Special Economic Zone Smoking Control Regulations" was submitted for its first review at a meeting of the Standing Committee of the Municipal People’s Congress. The formally submitted draft amendment mainly contains seven aspects of revision, including the retention of the proposal to include vaping devices within the scope of smoking control.

1. Moderately expand the scope of places where smoking is prohibited;

2. Add a joint conference system for district government smoking control work;

3. Include vaping devices within the scope of smoking control;

4. Expand the scope of places where tobacco products may not be sold;

5. Adjust penalties for individuals;

5. Adjust penalties for venue operators and managers;

7. Adjust penalties for tobacco sellers who fail to set up legally required signage.


In fact, those familiar with domestic legislative work should understand that once the "Draft Amendment to the Shenzhen Special Economic Zone Smoking Control Regulations," which includes the proposal to bring vaping devices into the smoking control scope, was formally submitted to the Standing Committee for deliberation, it signaled that Shenzhen’s inclusion of vaping devices in smoking control may already be a foregone conclusion.

As the world’s largest center for the R&D, production, and sales of vaping products, Shenzhen has developed a mature industry chain. Last year, the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce published its 2018 vaping industry development summary, noting that of the 678 domestic vaping manufacturers counted in China, 86.7% were in Shenzhen; among 66 e-liquid companies, 77% were in Shenzhen. The vaping industry involves more than 70 supply-chain segments, and domestic employment is estimated at around 1 million people.
 
Data source: Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce

This time, based on Shenzhen’s long-term considerations for smoking control in the Special Economic Zone, the city plans to include vaping devices within the scope of smoking control. What impact this will have on the vaping industry remains to be seen.