Shenzhen Companies Dominate the E-Cigarette Industry and Hope for Clear Policies to Drive Growth

Nandu News, reported by journalist Wen Ting — At yesterday’s forum of the International Medical and Personal Healthcare Industry Expo at the China Hi-Tech Fair, a representative of the Shenzhen Electronic Cigarette Chamber of Commerce revealed that global e-cigarette sales reached US$3 billion last year. China is the world’s largest e-cigarette exporter, and 95% of e-cigarettes are manufactured in Shenzhen. More than 400 e-cigarette manufacturers are concentrated in Shajing and Fuyong alone. However, domestic policy has yet to clearly define the industry, leaving companies hesitant about how to develop within China.

At the forum, one e-cigarette company disclosed that it exports nearly one million e-cigarette kits to the United States each year, yet the industry in China has long operated in a gray area. Because the authorities have never officially defined the industry or introduced relevant regulations, companies have not dared to expand aggressively. Zhu Hua, marketing manager of Shenzhen XIANK Technology Co., Ltd., said that at the root of the issue, e-cigarettes affect the interests of traditional cigarettes, and cigarettes have always been a state-monopolized industry. Given this direct competition with conventional cigarettes, major e-cigarette companies have been reluctant to make bold moves.