Reuters exclusive interview with Han Li: e-cigarettes are a consumer-driven revolution

According to Tobacco Online and China Foreign Tobacco Report, Han Li was a pharmacist in China before inventing the e-cigarette, smoking 2-3 packs a day, and he struggled to quit smoking. Now, the e-cigarette he invented has shaken the entire tobacco industry.

One night in 2002, Han Li forgot to remove the nicotine patch he had stuck to his stomach, resulting in a night filled with nightmares. He discovered that the continuous use of nicotine caused the nightmares and also realized that the controlled release of nicotine made his stomach very uncomfortable.

Without the nicotine pleasure from cigarettes, Han Li found that he had no sense of relaxation, and his mind was often in a tense state. His major in college was medicine, and he was proficient in mechanics while also being interested in electronics, so he began to think about creating something that could simulate cigarettes but eliminate the deadly consequences of smoking.

His inner motivation grew stronger due to the death of his father, who was a smoker and was diagnosed with lung cancer, passing away in 2004. "I believe that if I can use vapor to simulate cigarette smoke, then it can help me," Han Li said in an exclusive interview with Reuters.

Thirteen years after the nightmares, this 59-year-old man stopped in London to give an exclusive interview to Reuters. Just a few days prior, he attended the Global Nicotine Summit in Warsaw, Poland, as the "father of the most disruptive technology in the industry." He is currently employed by one of the world's largest tobacco companies, Imperial Brands, which acquired the company founded by Han Li in 2013.

Imperial Brands is the fourth largest tobacco company in the world and will play a major role in the U.S. e-cigarette market. The company will soon complete its acquisition of Blu e-cigarettes.

E-cigarettes generate vapor by heating a liquid containing nicotine. E-cigarettes have ignited the global market, with expectations for the market to expand to $7 billion this year. Currently, there is no final consensus on the long-term health effects of e-cigarettes, which inevitably leads to social debate.

Tobacco giants, including Philip Morris International, British American Tobacco, and Japan Tobacco, are competing to enter the e-cigarette market, hoping to gain more market share before the government establishes final policies.

Some legislators are concerned that e-cigarettes will lead non-smokers to start vaping or even smoking cigarettes. Supporters of e-cigarettes argue that bans on e-cigarettes will hinder smokers from transitioning to e-cigarettes.

"E-cigarettes are a consumer-driven revolution," Han Li said. E-cigarettes on the market can meet the needs of different customers, whether they are smokers looking to reduce or quit their nicotine addiction, or the newly emerging entertainment-focused "cloud chasers." "Cloud chasers" are keen on using nicotine-free e-liquids to blow out the largest and densest vapor clouds.

Han Li describes the "cloud chaser" phenomenon by saying, "When car manufacturers first appeared, they did not anticipate the emergence of F1—the world’s highest level of racing competition. There are always people in the world who seek fun and passion."

Although the vast majority of e-cigarettes are manufactured in China, the Chinese e-cigarette market remains small, with tobacco still occupying a large market share. Currently, China is the largest tobacco market in the world, monopolized by the State Tobacco Administration. Relevant parties estimate that tobacco revenue in China may account for 10% of the government's total revenue.

In early June, Beijing began implementing a smoking ban in public places, which will lead more smokers to switch to e-cigarettes. Those who smoke in restaurants, hotels, schools, hospitals, and related outdoor public places will be fined 200 yuan (32.25 USD).

Han Li said that second- and third-tier cities in China will follow Beijing's lead to improve public health safety with the government. "Everything happening in the e-cigarette market here will definitely happen in China as well."