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Tag: China

  • Zimbabwe Tobacco Eyes Record Output, Concerned About China

    Zimbabwe Tobacco Eyes Record Output, Concerned About China

    Zimbabwe’s tobacco sector is moving toward another record year, projected to exceed 360,000 tons in output, up from 355,000 tons in 2025 and 306,000 tons in 2024, driven largely by contracted smallholder farmers working with foreign-backed agribusinesses, including Chinese-linked firms. According to the Tobacco Industry and Marketing Board, planted acreage increased by 15% with more than 127,000 registered growers, around 95% of whom are smallholders and account for roughly 85% of total output. The sector has rebounded sharply from its 2008 collapse, when production fell to 48,000 tons following land reform disruptions.

    While contract farming has expanded access to inputs such as seed and fertilizer and supported export growth across roughly 60 global markets, growers and industry representatives report increasing concerns over debt exposure, fees, and pricing pressures under financing agreements, particularly within systems dominated by Chinese contractors, which account for around 60% of export value. Zimbabwe is also seeking to diversify export destinations and expand domestic cigarette manufacturing, which currently represents about 11% of output, as officials, including Finance Minister Mthuli Ncube, push for greater local value addition amid rising global scrutiny from public health and environmental groups, including the World Health Organization.

  • CBP Seizes $175M in Illicit Vapes from Maritime Cargo

    CBP Seizes $175M in Illicit Vapes from Maritime Cargo

    The U.S. Customs and Border Protection, working with the U.S. Coast Guard and the U.S. Food and Drug Administration, announced that it has seized more than 18 million vape units valued at over $175 million over the last few weeks under a targeted initiative known as Operation Red Mist. The ongoing operation focuses primarily on maritime cargo shipments originating from the People’s Republic of China and is aimed at disrupting the illicit importation, transport, and distribution of unauthorized vape products and related hazardous components.

    According to CBP, inspection teams identified shipments that were misclassified or improperly labeled to evade detection, duties, and regulatory scrutiny, and that failed to meet U.S. import requirements for tobacco products, electronics, and hazardous materials transport. Officials said all e-cigarette products seized lacked the required FDA premarket authorization, making them illegal for sale in the United States. CBP said the operation reflects a broader, government-wide effort to keep noncompliant and potentially dangerous vaping products out of U.S. commerce and away from youth, while disrupting the revenue streams that often support broader criminal activity.

    Source: U.S. Customs and Border Protection

  • Hong Kong Customs Busts $1.5M Illicit Cigarette Ring

    Hong Kong Customs Busts $1.5M Illicit Cigarette Ring

    The Hong Kong Customs and Excise Department arrested three people following a months-long investigation into an illicit cigarette distribution and money laundering syndicate that led to the seizure of about 2.2 million untaxed cigarettes and HK$11.3 million ($1.5 million) in suspected criminal proceeds. The case stems from a January raid on a remote warehouse in Ngau Tam Mei, where investigators discovered the cigarettes—valued at HK$9.9 million ($1.3 million)—along with detailed records documenting brands, storage dates, and volumes.

    A follow-up financial probe found that one of the suspects used his own bank accounts, as well as those of his girlfriend, to process payments from customers buying illicit cigarettes, while a third suspect is believed to have supplied the products. Investigators identified thousands of transactions between 2021 and 2025 involving more than 1,000 third parties, with rapid fund movements and low balances characteristic of money laundering activity. The suspects have been released on bail pending further investigation. Under Hong Kong law, trafficking illicit cigarettes carries penalties of up to HK$2 million ($260,000) in fines and seven years’ imprisonment, while money laundering convictions can bring fines of up to HK$5 million ($650,000) and 14 years in prison.

  • NACS Urges Action Against Illicit Chinese Vapes

    NACS Urges Action Against Illicit Chinese Vapes

    The National Association of Convenience Stores (NACS) called on U.S. trade officials to address the surge of illicit e-cigarettes entering the country from China, warning that unauthorized products now account for an estimated 80% of the ENDS market. In a submission to the U.S. Trade Representative, NACS said these imports, which often lack FDA authorization, pose health risks, particularly to youth, while undermining compliant retailers and legitimate supply chains.

    NACS is urging a coordinated government response, including enforceable commitments from China to restrict exports that violate U.S. regulations, improve product classification and oversight, and strengthen enforcement mechanisms. The group said curbing illicit flows is critical to protecting public health, ensuring fair competition, and safeguarding the economic viability of regulated businesses.

  • Former China Tobacco Head Expelled from CPC for Corruption

    Former China Tobacco Head Expelled from CPC for Corruption

    Han Zhanwu, former deputy head of the State Tobacco Monopoly Administration, has been expelled from the Communist Party of China and removed from public office following an anti-corruption investigation. According to a notice from the Central Commission for Discipline Inspection and the National Commission of Supervision, Han was found to have accepted gifts, cash, and valuables, improperly influenced hiring decisions, and sought benefits for others in business dealings. Authorities said the case involves suspected bribery and serious violations of Party discipline, with the matter now transferred to prosecutors for review and potential charges.

  • ‘Made in America’ Claims Rise as Brands Navigate Crackdown

    ‘Made in America’ Claims Rise as Brands Navigate Crackdown

    A Reuters investigation reports a growing wave of vape brands promoting “Made in America” credentials as the U.S. market faces tougher enforcement against unlicensed products, particularly those linked to Chinese manufacturers. The article says at least eight new brands have emerged since October, emphasizing U.S. identity, despite lacking authorization from the U.S. Food and Drug Administration, which has approved only a limited number of vaping products for sale.

    According to the report, trademark filings show some of these brands are tied to Chinese or Hong Kong interests, suggesting the marketing shift may be aimed at avoiding scrutiny from customs officials amid heightened trade tensions and regulatory pressure under the administration of Donald Trump. Analysts cited by Reuters say the tactic could slow efforts to push consumers from the illicit to the regulated vape market.

    The story also highlights that China remains the dominant supplier of vapes to the U.S., with trade data showing exports worth over $4 billion in 2025, even as companies experiment with partial U.S. production or American-themed branding to adapt to tariffs, enforcement actions, and changing consumer perceptions.

  • Smart Glass Exposes Smokers in Shenzhen Malls Restrooms

    Smart Glass Exposes Smokers in Shenzhen Malls Restrooms

    Two shopping centers in Shenzhen, China, have fitted men’s restroom cubicles with smart glass doors that turn transparent when smoke is detected, aiming to stop visitors from smoking inside toilets. The system was introduced in August 2025 at the Shuibei International Center and Gold Plaza. Sensors trigger the glass to clear if cigarette smoke is present, exposing the occupant and discouraging the behavior.

    A staff member at Gold Plaza said the measure has drawn positive feedback from shop owners and shoppers, who say it helps maintain cleaner, smoke-free facilities.

  • Luxembourg One of the Gateways China Uses to Flood EU With E-Cigs

    Luxembourg One of the Gateways China Uses to Flood EU With E-Cigs

    A new study by the Fraunhofer Institute calls Luxembourg one of four “gateway countries” that China uses to saturate the grey and black markets of Europe with e-cigarettes, along with Germany, Belgium, and the Netherlands. Uwe Veres-Homm, head of risk and location analysis at Fraunhofer IIS, said more than 90% of e-cigarettes in the EU originate from China’s “global epicenter,” Shenzhen, where regulations for exported products are much more lenient than those staying in China. Regulatory import loopholes allow products that are legal, illegal, and/or improperly taxed and labeled to flood together, and once processed by customs in Luxembourg, they are considered EU goods and can enter the market elsewhere, he said.

    The study found that half of the e-cigarettes consumed in Luxembourg come from “irregular sources,” and said Luxembourg is attractive not only because of its strategic location, but also because it has low e-liquid taxes (€0.10/ml).

    The study concluded that banning e-cigarettes would not eliminate the grey and black markets and suggested harmonized EU standards and involving Chinese manufacturers to comply with EU laws as the products are being made.

  • Lawsuit Says Marketing Compromises Chinese Vape Company

    Lawsuit Says Marketing Compromises Chinese Vape Company

    A U.S. plaintiff has filed suit against Chinese vape manufacturer Shenzhen IVPS Technology Co. Ltd. in the U.S. District Court for the Eastern District of North Carolina, alleging harms linked to the company’s marketing and sales of e-cigarettes in North Carolina. The manufacturer is seeking to dismiss the case, arguing that its operations do not establish sufficient ties to the state for the court to assert jurisdiction. The plaintiff maintains that the company’s active promotion and sale of its products in North Carolina bring it squarely within the court’s reach.

  • 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.