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Tag: China

  • China Regulator Orders Vape Makers to Halt New Plants

    China Regulator Orders Vape Makers to Halt New Plants

    China’s State Tobacco Monopoly Administration ordered e-cigarette manufacturers to halt new factory construction and suspend investment projects as part of efforts to curb price competition and address industry overcapacity, Reuters reported. In a notice issued today (Feb. 13), the regulator said capacity utilization across the sector is already high and warned companies against bypassing the directive by building facilities labeled for other products that are ultimately used to produce e-cigarettes.

    The regulator said manufacturers may only expand production if they can demonstrate genuine necessity or prove output is focused on export markets. The notice also bans producers from transferring supply quotas to unlicensed firms or disguising e-cigarette expansion through investment in other product lines, though it allows companies to restructure capacity through mergers. Authorities added that production lines and approved output for e-cigarettes must be clearly separated from those used for heated tobacco products and smoking accessories.

  • China Cracking Down on Smuggled NK Cigarettes as Demand Grows

    China Cracking Down on Smuggled NK Cigarettes as Demand Grows

    China has intensified enforcement against the smuggling of North Korean cigarettes, handing prison sentences and fines to traffickers and expanding investigations to target the entire illicit supply chain, but demand for the products among Chinese consumers remains strong, according to sources cited by Daily NK. Recent cases in Dandong saw smugglers sentenced to two years in prison and fined 200,000 yuan ($41,000), as authorities increased pressure on storage and retail networks, discouraging merchants from handling North Korean tobacco even when legally imported. Despite the crackdown, North Korean cigarette manufacturers are expanding product ranges—introducing slim formats, varied tar levels, and competitively priced offerings—to sustain demand in China, with observers suggesting that continued consumer appetite is likely to keep illicit distribution active despite tighter controls.

  • Nepal Confiscates 16K Illicit Vapes at Mountain Border

    Nepal Confiscates 16K Illicit Vapes at Mountain Border

    Nepalese authorities seized e-cigarettes valued at Rs 22.4 million ($155,000) at the Korala border, underscoring continued enforcement against illegal vape trade. The Nepal Police, Armed Police Force, and Mustang Customs Office intercepted a container carrying 16,000 vape units on Monday (January 12) evening, with the driver taken into custody and the vehicle impounded. The seizure follows a similar operation last year at the same transit point—a high-altitude crossing point with China’s Tibet Region—where vapes worth Rs 68.1 million ($470,000) were confiscated, highlighting persistent smuggling activity along the border.

  • Philippines Seizes $1.9M in Counterfeit Cigarettes

    Philippines Seizes $1.9M in Counterfeit Cigarettes

    The Philippine Bureau of Customs seized an estimated P105.58 million ($1.9 million) worth of illicit cigarettes in Bataan, uncovering more than 1,000 master cases transported in 12 vehicles and traced to shipments originating from China, Vietnam, and South Korea. Authorities said the cigarettes—bearing brands including Modern, RGD, Nise Baisha, and President—were intended for distribution in northern and central Luzon, underscoring ongoing enforcement challenges as Customs intensifies its anti-smuggling campaign amid revenue shortfalls and a higher 2026 collection target.

  • China Scrutinizing Vape Industry

    China Scrutinizing Vape Industry

    China’s e-cigarette industry is entering a new round of regulatory tightening, with multiple draft policies recently opened for public consultation, according to China Business Network. Last week, the State Tobacco Monopoly Administration (STMA) released draft rules on credit management for e-cigarette manufacturers and wholesale enterprises, proposing a formal credit system that covers information collection, ratings, public disclosure, penalties for dishonesty, and credit restoration. Under the draft, companies would be graded A to D, with lower-rated firms facing stricter scrutiny on capacity expansion, investment approvals, and even licensing. This follows a STMA draft policy in December aimed at maintaining a dynamic balance between supply and demand, reinforcing total capacity control, and largely prohibiting new capacity additions except under tightly defined conditions.

    Together with earlier moves — including the solicitation of 2026 national e-cigarette standards and the State Council’s December call for tougher crackdowns on tobacco-related illegal activities — the measures signal a push toward more standardized, compliance-driven industry governance. Industry observers say the policies build on the regulatory framework established in 2021, when e-cigarettes were brought under tobacco-style supervision, and are intended to curb disorderly competition, raise compliance thresholds, and accelerate industry consolidation.

  • Habanos S.A. Co-Owner Extradited to China

    Habanos S.A. Co-Owner Extradited to China

    Billionaire businessman Chen Zhi was extradited by Cambodia to his native China following his arrest over an alleged multibillion-dollar cryptocurrency scam tied to human trafficking and forced labor, a case underscoring growing regulatory and enforcement risks across Southeast Asia’s consumer and logistics sectors. Cambodian authorities said Chen and two other Chinese nationals were detained yesterday (January 6) after a months-long transnational investigation and handed over to Chinese officials.

    Chen Zhi is believed to have extensive ties to the cigar and tobacco industry, owning or having owned stakes in companies such as Habanos S.A., Tabacalera USA, Tabacalera S.L., Tabacalera de García, and La Flor de Copán, among others, either directly or through shell corporations.

    U.S. prosecutors previously charged Chen Zhi with orchestrating global online scams from Cambodia, leading to the seizure of roughly $14 billion in bitcoin, one of the largest financial crackdowns on record. His business empire, Prince Group—previously sanctioned by the U.K.—has denied involvement in scams.

  • Europe Helping Offset China Losses in Zimbabwe’s Tobacco Exports 

    Europe Helping Offset China Losses in Zimbabwe’s Tobacco Exports 

    Zimbabwe’s tobacco exports dipped 0.7% from the previous year to $1.36 billion (as of mid-December), thanks in part to exports to China dropping from $953.2 million to $819.3 million. Despite the 14% decline, the Far East still accounted for 60% of the nation’s total tobacco export value, all data according to the Tobacco Industry and Marketing Board (TIMB).

    While traditional Asian markets cooled, a massive surge in European demand and steady growth within Africa helped offset the overall decline. The European Union emerged as the standout growth market this season, with export values skyrocketing by 64.5%, going from $103.1 million to $169.6 million. According to the TIMB, the surge reflects a growing preference for Zimbabwe’s high-quality, flue-cured Virginia leaf among continental manufacturers.

  • China Key to Zimbabwe’s Record Tobacco Output

    China Key to Zimbabwe’s Record Tobacco Output

    Zimbabwe’s tobacco sector has surpassed 350 million kg in 2025, thanks in large part to Chinese support, Finance Minister Mthuli Ncube said. Speaking in Harare after signing agreements on China-aid irrigation projects, Ncube highlighted China’s role in providing both credit facilities and market access through China Tobacco, helping small- and medium-scale farmers grow the sector beyond expectations.

    The assistance has helped Zimbabwe maintain its position as Africa’s top tobacco producer and a significant player globally. The tobacco industry remains a cornerstone of Zimbabwe’s agriculture, supporting over 160,000 households, according to government data.

  • China Calls for Full-Crackdown on Illicit Tobacco Products

    China Calls for Full-Crackdown on Illicit Tobacco Products

    China’s State Council has issued new policy guidance aimed at cracking down on tobacco-related illegal activities across the entire supply chain, seeking to address persistent problems such as counterfeiting, smuggling, and intellectual property infringement. The document, titled Opinions on Combating Tobacco-related Illegal Activities in the Whole Chain, outlines targeted measures to clean up the tobacco market and protect national interests and consumer rights.

    The Opinions call for intensified action against overseas counterfeiting and the smuggling of tobacco into China, including stronger law enforcement cooperation with other countries, tighter sea and land border controls, and stricter oversight of ports, transit trade, and cross-border logistics. Authorities are also instructed to strengthen risk control over international transport and parcels, and to curb smuggling through cross-border e-commerce and transportation personnel.

    Domestically, the policy mandates a high-pressure crackdown on illegal production, storage, transport, and sale of tobacco products, including counterfeit cigarettes and unapproved nicotine products. It also tightens supervision of e-cigarettes and bans the unauthorized manufacture and sale of tobacco-like products and simple cigarette-making equipment. The State Council stressed the need for stronger inter-agency coordination, professionalized enforcement teams, and strict, standardized law enforcement, urging local governments and departments to fully assume responsibility for implementing the measures.

  • Two More Arrested in Hong Kong, Smuggling 60K Vapes

    Two More Arrested in Hong Kong, Smuggling 60K Vapes

    Hong Kong authorities sentenced two men to six months in prison after 60,000 alternative smoking products were found in their luggage upon arrival from Japan, the Department of Health (DH) said. The Tobacco and Alcohol Control Office (TACO) made the arrest after it was notified by Hong Kong Customs on December 15.

    Since amended tobacco control legislation took effect on September 19, granting arrest powers to TACO inspectors, 14 importation cases involving alternative smoking products have been prosecuted. Sixteen people have been convicted, receiving prison sentences of two to six months.

    Under Hong Kong law, importing alternative smoking products—including e-cigarettes, heated tobacco products, and herbal cigarettes—can result in fines of up to HK$2 million ($260,000) and imprisonment of up to seven years.