2FIRSTS | Alan Zhao: China’s High-Level Crackdown on Illicit Tobacco and Vaping Will Reshape the Global Market

Alan Zhao, CEO of 2Firsts, reports that China is launching a comprehensive crackdown on illicit tobacco and vaping activities, coordinated at the State Council level. This represents a significant escalation in enforcement intensity, extending beyond previous agency-led actions to include public security, customs, and market regulators. The crackdown aims to address the entire supply chain, from raw materials to sales, and will likely involve the investigation and public disclosure of high-profile cases. China’s actions are expected to curb illicit trade at its source and foster greater international cooperation, particularly in combating cross-border smuggling.

This enforcement push has global implications, especially as 2026 approaches—a pivotal year for tobacco and vaping regulation worldwide. China’s position as a major manufacturing base and consumer market means its enforcement posture will have far-reaching consequences, potentially leading to supply chain restructuring and increased compliance demands.

For industry stakeholders, this necessitates a reassessment of compliance practices, prioritizing risk control and proactive communication with regulators. Compliance is now a decisive factor for success, and international cooperation is crucial to address the challenges of cross-border illicit trade and reshape the global industry landscape.

(Source：2Firsts)