Breaking News | China Deploys Full-Chain Crackdown on Illicit Tobacco; Enforcement Storm Looms for Illegal Tobacco and E-Cigarettes.

Are we giving China enough credit here? Think about it; China infiltrates approximately 592,000 illicit Vapes into the U.S. daily. The recent notice of enforcement within China, includes Manufacturers, Wholesalers, Distributors and Retailers. If China would adopt a similar crackdown on the illicit supply off Fentanyl precursor chemicals illegally imported and smuggled into our Country, Mexico would be out of business, or at least smuggling Fentanyl into the U.S. would be dramatically hindered.

Like Fentanyl, it is difficult to determine the exact number of illicit vapes brought into the US annually from China because they are unauthorized and often smuggled, meaning official import records are incomplete. However, data discrepancies between US and Chinese customs, along with market estimates, provide a clearer picture than seizure data alone. 

Estimated Quantity and Value

• Estimated Annual Units: An estimated 216 million illicit vapes from China infiltrated the U.S. in 2024, based on market sales data. This equates to approximately 591,780 units entering the country daily.
  
  
• Estimated Market Value: The retail value of these illicit products is estimated to be over $2 billion annually. Chinese export data suggests the manufacturer value of all vapes (illicit and legal) shipped to the U.S. was $3.7 billion in 2024. 

There is a significant gap between what China reports exporting and what the U.S. officially records as receiving: 

• U.S. Import Records: The U.S. Census Bureau recorded the declared value of e-cigarette imports from China as only about $333 million in 2024.
  
  
• Chinese Export Records: Chinese customs data, for the same year, indicated that $3.6 billion worth of vapes were exported to the U.S.. 
  
  

This massive difference highlights the scale of products entering the U.S. through unofficial or mislabeled channels to evade import reviews and duties.

China Enforcement Article Summary:

● China’s State Council General Office on December 18 issued a high-level enforcement directive, calling for a full-chain crackdown on illicit tobacco-related activities across production, logistics, distribution, retail and cross-border trade.

● E-cigarettes and nicotine pouches are explicitly brought under enforcement, with the document banning the unlicensed production and sale of nicotine-containing oral products.

● Illegal e-cigarette “export reflow” is singled out as a key target, reinforcing enforcement following China’s 2022 move to place e-cigarettes under the tobacco monopoly system and restrict domestic sales at the product standard level.

● The directive strengthens coordination between administrative enforcement and criminal justice authorities, and calls for cross-agency action involving customs, public security and market regulators.

● Tobacco remains a major source of fiscal revenue, with the industry generating about 1.54 trillion yuan in 2024, roughly 7% of China’s general public budget revenue.
 

According to a report released by Xinhua News Agency on December 18, the document — titled Opinion on Cracking Down on Tobacco-Related Illegal Activities Across the Entire Chain — addresses long-standing issues including counterfeit production, illegal sales and smuggling. It calls for strengthened law enforcement across the entire supply chain, from manufacturing and warehousing to logistics, distribution, retail and cross-border trade, with the stated aim of purifying the tobacco market and safeguarding state interests and consumer rights.

State Council General Office Elevates Enforcement Deployment

The opinion was issued by the State Council General Office, a higher administrative level than most previous tobacco-related enforcement notices, which have more commonly been released by the State Tobacco Monopoly Administration or local authorities.

The document calls on local governments and relevant departments to fully assume their enforcement responsibilities, strengthen inter-agency coordination, and ensure that enforcement measures are implemented across all stages of the supply chain. It also calls for improving the vertical management of the tobacco regulatory system and strengthening mechanisms for entrusted enforcement between departments.

At Air2, we believe there is a better way to achieve TRUE nicotine reduction and reduce greatly the risks associated with Vaping harmful chemicals. VaporEFX - www.Air2vapor.com

VIEW THE ORIGINAL, UN-EDITED ARTICLE HERE.