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.