China Crisis
China and vapers face a possible triple crisis with a new ban on flavoured e-liquid in the land of ecigs, a Covid lockdown in Shenzhen, and the lingering possibility that support for Russia could lead to sanctions and further supply issues
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by Dave Cross
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China is the world’s leading producer of electronic cigarette devices, e-liquids, and holds the bulk of the global lithium deposits – used as a key component in the batteries that operate all vaping mods.
Dealing with the most remote threat first, rumours have surfaced that China has been asked by Vladimir Putin to support Russia’s attack on Ukraine. China has responded to the reports of its involvement on Monday as “pure disinformation”. It denied them completely, and panel guests on BBC 2’s daytime The Politics Show agreed that they did not believe China would be getting involved.
While this may be good news for the electronic cigarette market supply chain, this weekend’s declaration that the 17.5 million people in Shenzhen were being placed into a Covid lockdown is another matter entirely.
From enormous to small, all businesses are now closed entirely or staff are working from home, which means that product supply has now ended until the lockdown is lifted.
A spokesperson said: “In Shenzhen, all businesses — apart from those deemed essential or engaged in supplying Hong Kong — have suspended operation or have implemented work-from-home policies.”
Those hoping that distribution centres in Hong Kong will be able to plug the gap in supply will be disappointed to learn that authorities point to Hong Kong’s 30,000 Covid cases per day, the worst it has experienced, as the reason for Shenzhen’s troubles.
This couldn’t come at a worse time for Skyworth Health, a smart TV giant, which was set to become a new power in the Chinese vape manufacturing business, having just advertised for staff to fill a number of positions.
Then, sitting behind all of this, came the announcement from the UK Vaping Industry Association’s John Dunne, who wrote: “New news from China, Chinese e-cigarette regulations to ban the sales of flavoured e-cigarettes except for tobacco flavours on 1st May in China. It does not look like it will affect exports, but it will have a profound effect in the domestic market in China.”
The State had proposed to ban 122 flavours that included fruit, pastry, and alcohol flavours. Despite appeals for sense, it has followed through and now all manufacturers must register with the tobacco authority. In addition, Chinese-based businesses have to now apply for a licence to demonstrate they are financially able to conduct business and that their production facilities meet new exacting standards.
While some Chinese commentators have voiced their feelings that this could have a positive outcome for the industry, foreign experts have expressed strong doubts – and it is certainly disastrous news for Chinese smokers.
Dave Cross
Journalist at POTVDave is a freelance writer; with articles on music, motorbikes, football, pop-science, vaping and tobacco harm reduction in Sounds, Melody Maker, UBG, AWoL, Bike, When Saturday Comes, Vape News Magazine, and syndicated across the Johnston Press group. He was published in an anthology of “Greatest Football Writing”, but still believes this was a mistake. Dave contributes sketches to comedy shows and used to co-host a radio sketch show. He’s worked with numerous start-ups to develop content for their websites.
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