Chinese vape market is going extremely hot in 2019 which raised the attention of the government. However, one of the main tax income of the Chinese government is the monopoly sales of tobacco. When the vape markets eat up more and more sales of the tobacco, the government will strike it down hard.
Chinese vape enterprises numbers has increased from 858 to over 7,000 since 2014, and the average enterprise’s size is going as big as 10 million yuan average company. Large and famous capital companies are investing heavily on vape companies in recent few years as well, which boost the development of vape companies at the same time. A famous vape company sold 1 million sets of vape device in just 2 years in China, which annoyed the tobacco companies in China much.
As we all know, Chinese tobacco companies owned by government generate tax income as high as amazing 1 trillion every year.
Under this background, whatever the vape company is, or however much tax the vape company generates, it’s useless compared to the giant tobacco company. And the tobacco companies is strong enough to move the government’s hands to punish the tiny vape companies in their eyes like killing a fly with a flyswatter.
It’s a prelude on Chinese’s CCTV that the central television criticized the vape companies are selling their products to teenagers in the 315 Party, one of the most famous TV programme on revealing harmful products and scams. What’s more, it stressed the dangers and health hazards of vaping. It implied vape companies like Relx though didn’t mention its name.
All of the vape enterprised selling vapes in Chinese vape market is on a ship destined to be drowned. And the overseas market is the true savior of Chinese vape companies.