E-Cigarette Processing Added to Restricted Category in China’s Industrial Structure Adjustment Guida

Compared to the current guidance catalog (2019 version), the "Guidance Catalog 2023 (Draft for Comments)" includes "e-cigarettes and other novel tobacco products" in the restricted category.

Statement:
This article is compiled based on publicly available information from official websites and is for industry research purposes only.
All policy documents and related interpretations should be based on official releases.

Recently, the National Development and Reform Commission's website published the "Industrial Structure Adjustment Guidance Catalog (2023 version, draft for comments)" (hereinafter referred to as "Guidance Catalog 2023 (Draft for Comments)") for public comment. Compared to the current guidance catalog (2019 version), the "Guidance Catalog 2023 (Draft for Comments)" includes "e-cigarettes and other novel tobacco products" in the restricted category.

 Screenshot of the "Guidance Catalog 2023 (Draft for Comments)"      Screenshot of the "Catalog (2019 version)"

The "Guidance Catalog 2023 (Draft for Comments)" still maintains a structure consisting of encouragement, restriction, and elimination categories. According to the original text explanation, the restricted category mainly includes processes and technologies that are outdated, do not meet industry access conditions and relevant regulations, are detrimental to safe production, and hinder the achievement of carbon peak and carbon neutrality goals, requiring supervision for transformation and prohibiting the establishment of new production capacities, processes, technologies, equipment, and products.

The "Guidance Catalog 2023 (Draft for Comments)" also clearly states: "For new projects that fall under the restricted category, investment is prohibited. Investment management departments will not approve or authorize, and financial institutions are not allowed to issue loans. Departments such as natural resources, construction, ecological environment, water conservancy, market supervision, fire protection, and customs shall not handle relevant procedures. Any violations of regulations in investment and construction will hold the relevant units and personnel accountable. Existing production capacities that fall under the restricted category are allowed to take measures for transformation and upgrading within a certain period, and financial institutions will continue to provide support according to credit principles. Relevant national departments should follow the requirements for optimizing and upgrading industrial structures, adhering to the principle of survival of the fittest, and implementing classified guidance." 

The "Guidance Catalog 2023 (Draft for Comments)" was open for public comment from July 14, 2023, to August 14, 2023. The two above have reviewed the revision process of the "Catalog (2019 version)", which included public opinion collection, public opinion collection announcement, and formal announcement after committee meeting review. Based on this, the "Guidance Catalog 2023 (Draft for Comments)" is currently awaiting committee meeting review stage. 

References:

[1] Announcement on the public comment situation of the "Industrial Structure Adjustment Guidance Catalog (2023 version, draft for comments)"

[2] Announcement by the National Development and Reform Commission on the public comment of the "Industrial Structure Adjustment Guidance Catalog (2023 version, draft for comments)"

[3] Industrial Structure Adjustment Guidance Catalog (2019 version)