China's State Tobacco Monopoly Administration issued draft rules on Thursday to manage e-cigarettes, a step to enhance the industry's regulations.

According to the draft rules, companies selling e-cigarettes in China must meet national standards to register with the tobacco authority and do business legally.

Companies engaged in the production of e-cigarettes must also receive a special license from the tobacco authority, provided they can prove that they have the funds for production and a facility with equipment that meets standards.

The tobacco authority said that it will establish a "unified national electronic cigarette transaction management platform" that all licensed e-cigarette wholesalers and retailers must sell products through."

Meanwhile, e-cigarette payment and tax collection "shall be implemented in accordance with national taxation laws and regulations," the regulator said.

(With input from Reuters)