Shenzhen's Bao'an District, a major hub for China's e-cigarette industry, has launched a targeted regulatory model combining district and street-level coordination with precise oversight to promote lawful and standardized industry development. With licensed firms in the district accounting for nearly 60% of the national total and approximately 80% of the city's total, areas like Xinqiao Street host a concentrated cluster of e-cigarette businesses with comprehensive supply chains, most of which focus on export operations.
To address regulatory challenges, the Bao'an District Tobacco Monopoly Bureau and Xinqiao Street jointly initiated a pilot program for e-cigarette enterprise credit supervision and integrity building. This effort established a credit management service model emphasizing compliance and good faith.
Strengthening the organizational framework has been a foundational step. Guided by the Bao'an District Credit Office, a leadership team was formed with co-chairs from the District Tobacco Monopoly Bureau and Xinqiao Street, along with members from street-level economic development offices, market regulation agencies, police stations, and community representatives. A dedicated task force comprising experienced staff conducted multiple thematic seminars. Supporting documents were drafted, including the Bao'an District E-Cigarette Production Enterprise Credit Management Measures (Trial) and accompanying evaluation standards, as well as the Xinqiao Street E-Cigarette Industry Integrity Compliance Operation Guidelines (Draft), which clarify credit supervision requirements, evaluation metrics, and incentive or disciplinary measures.
Implementation has been precise, reinforcing credit management. Historical regulatory data and operational information from e-cigarette enterprises in Xinqiao Street were comprehensively compiled. A system of 42 credit evaluation indicators was established, covering four categories: basic information, legal violations, regulatory breaches, and integrity failures, spanning the entire lifecycle of enterprises from market entry to exit, thereby forming a closed-loop supervision mechanism. A dynamic, quantifiable credit evaluation model was developed, and e-cigarette firms in Xinqiao Street were rated for the first time according to four tiers: Excellent (A), Good (B), Average (C), and Poor (D). The initial assessment identified 12 enterprises as Grade A and 13 as Grade B. Individual credit files were created for each company, with results publicly disclosed through official street-level channels to ensure social oversight. Enterprises were instructed to conduct self-inspections and corrections based on integrity guidelines, with export-oriented firms urged to examine overseas compliance, contract fulfillment, and intellectual property protection issues, and to formulate and complete rectification plans within set deadlines.
A robust incentive and disciplinary mechanism has been put in place to motivate enterprises. Based on credit ratings, the District Tobacco Monopoly Bureau and Xinqiao Street are exploring differentiated, tiered supervision. Companies rated Grade A receive reduced inspection frequency, public recognition via official platforms, and commemorative plaques. They are also prioritized in market access, tax incentives, policy support, and promotional resources. Enterprises graded C or D have their violation records shared on the Credit Bao'an platform, face interviews with market regulatory authorities, and are ordered to rectify issues within a specified period. Those failing to make adequate corrections are penalized according to regulations, placed under intensified supervision, and subjected to more frequent inspections. A dedicated hotline and online platform have been set up to encourage public reporting of misconduct, with material rewards offered for verified tips. Regular analysis of complaints informs targeted campaigns to address recurring problems.
According to the Bao'an District Credit Office, the pilot has optimized administrative resource allocation and minimized disruption to normal business operations. Additionally, e-cigarette enterprises in the area have shown improved compliance awareness, enhanced product quality control, and a significant reduction in consumer complaints, leading to a fundamental improvement in market order.