---
title: "China regulator orders e-cigarette makers to halt new plants"
description: "China's State Tobacco Monopoly Administration has ordered e-cigarette manufacturers to halt the construction of new production plants to address overcapacity and curb price wars in the industry. The n"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/275841734.md"
published_at: "2026-02-13T02:52:12.000Z"
---

# China regulator orders e-cigarette makers to halt new plants

> China's State Tobacco Monopoly Administration has ordered e-cigarette manufacturers to halt the construction of new production plants to address overcapacity and curb price wars in the industry. The notice emphasizes that new investments should only be made if necessary and for the purpose of exporting e-cigarettes. It prohibits shifting supply quotas to unlicensed companies and expanding capacity under the guise of producing other products. E-cigarette makers may reorganize production through mergers, and production lines must be clearly distinguished from those for heated cigarettes and smoking utensils.

China's State Tobacco Monopoly Administration issued a notice on Friday aimed at curbing price wars in the e-cigarette industry, directing manufacturers to address overcapacity by suspending investment projects and the building of new production plants.

"The capacity utilisation rate is at a high level," the notice said, while warning e-cigarette makers against trying to skirt the instruction by building new facilities ostensibly for the production of other products that are in fact manufacturing e-cigarettes.

KEY DETAILS:

-   Producers should only invest in new projects and increase production capacity if it is really necessary and/or they can prove the focus is on manufacturing e-cigarettes for export
-   Notice prohibits e-cigarette makers from shifting supply quotas to other unlicensed companies and expanding production capacity by seeking fresh investment to make other products to disguise e-cigarette output
-   E-cigarette makers are allowed to reorganise their production capacity through mergers
-   The production line and approved production capacity of e-cigarettes should be strictly distinguished from heated cigarettes and smoking utensils

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---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.