By Timothy S. Donahue

Top Takeaways:

• China’s State Council General Office ordered a full-chain crackdown on illicit tobacco, e-cigarettes, and nicotine oral products.
• Nicotine pouches are explicitly named for the first time in a State Council–level enforcement document.
• The policy strengthens cross-agency coordination and targets smuggling, illegal production, and “export reflow.”

China’s State Council General Office on Dec. 18 issued a high-level policy opinion calling for a comprehensive, full-chain crackdown on illicit tobacco-related activities, and expanding enforcement coverage across traditional tobacco, e-cigarettes, and nicotine-containing oral products.

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

The opinion was issued by the State Council General Office, elevating the directive above previous tobacco 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 enforcement responsibilities, strengthen inter-agency coordination, and ensure that enforcement measures are implemented across all stages of the supply chain. It also emphasizes improving vertical management of the tobacco regulatory system and strengthening mechanisms for entrusted enforcement among departments.

For the first time in a policy document issued by the State Council General Office, the opinion explicitly states that the unlicensed production and sale of oral tobacco products, nicotine pouches, and nicotine gels containing tobacco or nicotine substances are prohibited. The document places nicotine-containing oral products squarely within the scope of tobacco-related enforcement, without outlining any licensing pathway for these products.

The opinion also calls for strict enforcement against the illegal manufacture and sale of products that resemble cigarettes in appearance, use, or primary function, including empty cigarette tubes, herbal or tea-based smoking products, and simplified cigarette-making machinery.

E-cigarette enforcement is also strengthened, with specific reference to illegal activities such as “export reflow,” in which products declared for export are diverted back into the domestic market through illicit channels. Before 2022, China did not prohibit flavored e-cigarettes, and fruit-flavored products expanded rapidly.

In 2022, China formally brought e-cigarettes under the tobacco monopoly system, adopting product standards that permit only 101 approved additives, thereby effectively preventing the sale of fruit-flavored e-cigarettes domestically.

Chinese regulators have previously said that illegally re-imported flavored e-cigarettes raise concerns about product safety, ingredient compliance, and tax losses. The new opinion calls for stricter supervision of e-cigarette production, storage, logistics, transportation, distribution, and online sales, as well as tougher enforcement against illegal manufacturing, wholesale, and retail activity.

Beyond specific product categories, the opinion emphasizes closer coordination between tobacco administrative enforcement bodies and criminal justice authorities, as well as enhanced cooperation among customs, public security, market regulation, and postal authorities. Particular focus is placed on smuggling via maritime routes, land borders, ports of entry, international mail, and cross-border e-commerce logistics.

The issuance of the opinion follows guidance delivered earlier this month at the highest level of government. According to Xinhua and China Media Group’s Xinwen Lianbo, on Dec. 5, Li Qiang chaired a State Council executive meeting that called for a comprehensive, full-chain crackdown on illicit tobacco activities. The meeting emphasized stronger supervision and enforcement across tobacco production, warehousing, logistics, circulation, and retail, but did not release detailed operational measures.

The Dec. 18 opinion issued by the State Council General Office provides the formal enforcement framework for implementing those priorities.