E-cigarette makers have been pitching in their two cents, after China expanded its Tobacco Monopoly Law last month to include vaping devices.

On December 2, China's State Tobacco Monopoly Administration (STMA) released a draft of "Administrative Measures for E-Cigarettes," which subjects e-cigarettes to the same regulations as traditional cigarettes. The administration is seeking public opinion on regulating the growing industry.

Heated discussions have been underway among over 1,000 participants at the 5th International E-cigarettes Industry Summit held in Shenzhen, where most of China's e-cigarette factories are located, on Friday.

"Soliciting opinions on revisions to the Tobacco Monopoly Law and regulating the e-cigarette market should be beneficial to the entire industry. Because it's been given a clear identity, it can be regarded as an emerging one," said Wang Ning, president of the China Electronic Chamber of Commerce.

Wang added that for the government, all industries need better management, and industry's management needs to be standardized.

But John Dunne, director-general of the UK Vaping Industry Association (UKVIA), said: "I think in its current form the legislation will have a massive influence on the industry both domestically and internationally, but not all in a good way."

"Some of the parts of the legislation are vague and unclear and my hope is that it will be clarified later in the process," said Dunne, adding that the UKVIA and several other organizations have laid out their concerns and suggestions in a letter to the STMA.

China's e-cigarette industry has exploded over the past two decades, with early movers benefiting from unlimited access to the largest population of smokers in the world.

At least 95 percent of the world's e-cigarettes are made in China. But the penetration rate of e-cigarettes in China is lower than in such other countries as the U.S. and UK.

According to Chinese data analysis firm iiMedia Research, the penetration rate of e-cigarettes in China hit 1.5 percent this year. In the United States, Britain and Japan, the rates are above 30 percent.

Will the new regulations affect exports of an industry with huge growth potential?

The new legislation is "especially important because markets like the UK, Europe and U.S. already have robust regulations in place anyway that these products must follow," Dunne said. But he also warned the risk that unnecessary burden and expense might force some companies to move their production out of China.

But some firms remain confident in the future, saying they won't take their factories out of China.

"Before 1982, there were about 500 to 600 tobacco companies engaged in the production and sales of cigarettes. It could get very chaotic at the time," said Li Bo, chairman of Shenzhen Cloupor Technology. Some negative things such as counterfeit cigarettes, overcapacity and poorly regulated market competition would bring harm to China's tobacco industry, Li added.

Wang Shenyi, chairman of Shenzhen Shikai Technology, called on his peers to "look at the next management measures or national standards in a way that won't restrict the industry's development, but better supervises and regulates the market to make it healthier and better in the long run."

Soliciting public comments on the draft regulation will end on January 29. Authorities say they welcome all opinions in a bid to standardize the e-cigarette industry, and protect public health and safety under the rule of law.

(Cover image: E-cigarettes on display at a shopping mall in Shanghai, east China, August 26, 2021. /CFP)