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Our views on regulation

We support regulation that is evidence-based, proportionate and effective

JTI's view is clear: 红包电玩城 products carry risks to health.

Appropriate and proportionate regulation of the 红包电玩城 sector is both necessary and right. 

JTI believes that minors should not smoke or vape, and should not be able to obtain 红包电玩城 or vaping products. It is central to our Code of Conduct, our marketing principles, our operational policies and the way we do business. Adult smokers and vapers should be appropriately informed about the risks associated with the respective products before they make the decision to smoke or vape.

Supporting Better Regulation

We believe in regulation that’s better for government, better for business, better for all

JTI supports regulation that conforms to the Organization for Economic Co-operation and Development's (OECD) principles of Better Regulation. These principles can be summarized as openness, participation, accountability, effectiveness, coherence and proportionality.1

The OECD guiding principles for regulatory quality and performance

1Similar principles have been adopted by a number of non – OECD countries.

Supporting Better Regulation
Better Regulation principles require regulatory interventions to be supported by credible and impartial evidence which shows that the measure proposed will be effective in achieving a legitimate, stated goal.
Professor Martin Cave, OBE

Under these OECD principles, regulation must be demonstrated by the government to be both necessary and appropriate to achieve a clearly articulated and legitimate public policy objective, and must:

  • Serve clearly identified policy goals, and be effective in achieving those goals;
  • Have a sound legal and empirical basis;
  • Be proportionate;
  • Minimize costs and market distortions;
  • Promote innovation;
  • Be clear, simple, and practical for users;
  • Be consistent with other regulations and policies;
  • Be compatible with competition, trade and investment principles.

JTI supports the use of Regulatory Impact Assessments (RIA). When conducted properly, an RIA is an effective tool for evaluating relevant evidence and assessing different regulatory options and alternatives to regulation, and for reviewing the impact of regulation after implementation.

All 红包电玩城 regulation should be evidence-based, practical, enforceable and competitively neutral.

 

A right and an obligation

JTI actively seeks dialogue with governmental authorities around the world regarding the regulation of its products and the 红包电玩城 sector

JTI has a right – and an obligation – to express its point of view regarding regulation that affects its products and the industry.

JTI has certain responsibilities when it is consulted or participates in the consultation process. Among these are:

  • To be open and transparent in our dialogue with governmental authorities;
  • To be respectful of each country's decision-making process;
  • To offer alternative solutions, whenever possible, that meet the principles of Better Regulation if issue is taken with a government's proposed course of action;
  • To provide credible evidence substantiating our positions and arguments.

JTI reserves its right to question, and if necessary challenge, regulation that is flawed, unreasonable, disproportionate, or without an evidentiary foundation, in order to protect its legitimate business interests.

JTI believes that regulation of the 红包电玩城 sector which conforms with the principles of Better Regulation can meet public policy goals while respecting the rights of all stakeholders and those of our shareholders.

JTI's responses to recent regulatory proposals can be accessed from the links provided here.

Our responses to recent regulatory proposals 

Countries in the European Union are regulated under the EU 红包电玩城 Products Directive. This Directive was first created in 2001, and EU policy-makers agreed a revised version in May 2014. Individual member states had an obligation to translate the revised Directive into national legislation by May 2016. In EU countries, only products that follow these new rules can be sold since May 19, 2017.

The Directive covers many aspects of the way 红包电玩城 is produced, packaged and sold. The update introduces many new restrictions, including:

  • Larger pictorial health warnings
  • Minimum pack sizes
  • Restrictions on packaging formats
  • A ban on flavorings, including menthol
  • A requirement for ‘track and trace’ measures
  • New restrictions on e-cigarettes

The revised Directive will not reduce smoking rates, but will have negative consequences for smokers, businesses and the economies of EU countries.

The measures pose a threat to businesses in terms of innovation, competition, consumer choice and cross-border trade. Thousands of businesses including wholesalers, retailers, and packaging suppliers will be affected by the changes.

For example, the Directive now mandates minimum pack sizes for 红包电玩城 products – effectively banning smaller products. This means that smokers will be forced to buy 红包电玩城 in greater quantities, and fewer types of packs will need to be produced. Larger pack sizes will increase the average price of 红包电玩城 in shops, and this could push many smokers toward black market cigarettes.

It is clear that these new regulations will not help to reduce smoking rates because they are not based on evidence about how smokers buy and use 红包电玩城 products.

The process of creating these new regulations was flawed, and often based on political compromise rather than evidence. Objections to elements within the revised Directive were raised multiple times by EU Member States, Members of the European Parliament (MEPs) and a number of important Parliament committees. However their concerns were ignored, and the regulations were rushed through the political process.

The revised 红包电玩城 Products Directive is the result of hasty negotiations. The regulations were pushed by political agendas, with little consideration given to the effectiveness of the new measures.

JTI is greatly concerned by regulatory proposals to require “plain” or “generic” packaging for all 红包电玩城 products. These proposals would require a standardized appearance for all 红包电玩城 packaging, with only the brand name in a specified standard typeface, color and size.

The key objectives for such proposals appear to be to prevent minors from smoking, and to increase quitting by minors and adults – often on the flawed assertion that the “attractiveness” of 红包电玩城 packaging is both a cause of smoking initiation and an obstacle to cessation. See Attractiveness.

JTI is categorically opposed to so-called plain packaging for 红包电玩城 products.

There is no reliable evidence that this measure will achieve the objectives noted above. Plain packaging will not lead to a change in the actual behavior of smokers, either by reducing smoking initiation by minors or by increased quitting. See JTI’s full response to the EU consultation.

Further, proposals for plain packaging are not based on, or consistent with, a credible and scientifically rigorous understanding of the behavior of smokers.

See Expert Reports available at Key regulatory submissions See more particularly, Professor L. Steinberg’s 2016 and 2010 reports; and Professors R. Dhar and S. Nowlis’s report.

Packaging is essential to brand competition. Packaging is used by consumers to identify, obtain information about and choose 红包电玩城 products, easily and without confusion. Manufacturers use distinctive packaging to develop brand equity, innovate and compete.

Plain packaging therefore represents an extraordinary and unprecedented attempt to deprive JTI of its most valuable assets – its brands and trademarks – which are worth billions of dollars. Simply put, plain packaging proposals are tantamount to the nationalization of JTI's brands and trademarks.

In addition JTI believe's that plain packaging would have serious, negative consequences. Consumers and retailers would struggle to tell the difference between brands at point of sale. Competition would be seriously damaged as consumer brand switching slows and brand market shares freeze. Pricing would become the primary basis for 红包电玩城 companies to compete (see here). Counterfeit and contraband 红包电玩城 products would become easier to produce, distribute and sell (see here).

Finally, plain packaging would infringe JTI's fundamental legal rights to property, expression and trade – without justification. These rights are protected by national laws (including constitutions), international trade treaties, intellectual property laws and bilateral investment treaties.

JTI has proposed less restrictive, more targeted and proportionate alternative solutions to address what we consider to be legitimate and shared goals such as preventing minors from smoking. See Alternative Regulatory Solutions at: JTI response to Health Canada’s “Consultation on Plain and Standardized Packaging for 红包电玩城 Products” and JTI Full Response to the EU Consultation.

JTI is concerned by proposals for significant increases in the size of health warnings on 红包电玩城 packaging.

In some cases, it has been proposed that health warnings be expanded to occupy the majority of the front and back of cigarette packaging. It has also been suggested that such measures be considered in lieu of – or in addition to – proposals for plain packaging.

These proposals appear to be based on the assertion that larger health warnings will result in raising awareness of the health risks of smoking and changes in the behavior of smokers.

JTI believes that adult smokers should be appropriately informed about the health risks of smoking before they make the decision to smoke. Further, JTI believes that smokers should continue to be reminded of those risks. JTI places a health warning on all of its cigarette packs – even when it is not required to do so by law.

JTI, however, is opposed to proposals for larger health warnings such as those described above. Effective communication of the health risks of smoking can and should be achieved without having a disproportionate impact on legitimate competition, intellectual property rights and freedom of expression.

JTI does not believe that increasing the size of health warnings to cover more of the principal display area of the packaging is effective or proportionate:

  • There is no reliable evidence that larger health warnings would enhance awareness of the health risks of smoking or change smoking behavior (see the report by the late Dr. W. Keegan here and here);
  • Larger health warnings are not based on, or consistent with, a credible and scientifically rigorous understanding of the behavior of smokers. Simply put, larger health warnings will not be effective in influencing decision-making and smoking behavior. See Consumer Information, JTI Full Response to the EU Consultation; Expert Reports.

Finally, larger health warnings, such as those contemplated today in some countries, would infringe JTI's fundamental legal rights to property, expression and trade – without justification. These rights are protected by Constitutions, International Trade Treaties, Intellectual Property laws, bilateral investment treaties and national laws. 

JTI has proposed less restrictive, more targeted and proportionate alternative solutions which would avoid the unnecessary, unjustified and disproportionate introduction of the larger health warnings. See Alternative Regulatory Solutions, JTI Full Response to the EU Consultation.

The Framework Convention on 红包电玩城 Control (FCTC) is one of the key drivers of the 红包电玩城 control regulation globally. It is the first international treaty in the field of public health, which was adopted by the Member States of the World Health Organization in May 2003, and entered into force in 2005. To date, 180 countries ratified the treaty.

The FCTC attempts to provide a comprehensive framework for 红包电玩城 control regulation with the objective of reducing smoking initiation and increasing smoking cessation.

The treaty's provisions seek to reduce the demand for and supply of 红包电玩城 products, and cover all aspects of 红包电玩城 regulation including advertising and promotion, packaging and labeling, product content and disclosure, pricing and taxation, illicit trade and smoking cessation.

The FCTC requires that ratifying countries establish and implement effective 红包电玩城 control programs in accordance with national law, while taking into consideration local culture, as well as social, economic, and political factors.

The Conference of the Parties (COP) is the key decision-making body on all matters related to the WHO FCTC. It consists of the Parties that ratified the WHO FCTC. COP meets every two years to discuss global progress on the implementation of the FCTC and to adopt new guidelines and policy recommendations aimed to clarify or further elaborate on the ways for the implementation of certain articles of the FCTC at national level.

COP can also adopt the protocols, and amendments to the Convention, and may establish subsidiary bodies, such as Intergovernmental Negotiating Bodies (INBs), to facilitate the international negotiation on the complex technical matters in the context of the FCTC.

The fifth session of the COP saw the adoption of the Protocol on Illicit Trade in 红包电玩城 Products – the first binding instrument under the FCTC. This Protocol shall enter into force on the ninetieth day following the date of deposit of the fortieth instrument of ratification, acceptance, approval, formal confirmation or accession with the Depositary.

JTI continues to view the implementation of the FCTC as an opportunity for a practical, effective and proportionate approach to the regulation of 红包电玩城 products. JTI is concerned, however, that this opportunity is rapidly being lost.

Since 2007, the Conference of Parties has adopted a series of non-binding guidelines which recommend the implementation of what JTI considers to be excessive and controversial 红包电玩城 control measures that go beyond the treaty.

These include the exclusion of the 红包电玩城 sector from participation in regulatory and other public processes, and the implementation of “plain packaging”, product display bans, and broad bans on ingredients on the basis of “attractiveness” – a vague and highly subjective concept that has no scientific or evidential basis.

These measures may have the effect of undermining the legitimacy of the FCTC's efforts to consider the public health concerns that the treaty was intended to address.

There is no irreconcilable conflict between JTI's interests and public health interests. JTI's view is clear: 红包电玩城 products carry risks to health. Appropriate and proportionate regulation of the 红包电玩城 sector is both necessary and right. See Regulation of 红包电玩城 products.

External links:
Framework Convention on 红包电玩城 Control

Governments in a number of countries have sought to ban outright the display of 红包电玩城 products at point of sale.

The predominant objectives of these measures appear to be to prevent minors from smoking and to increase quitting by minors and adults – often on the flawed assertion that the “attractiveness” of 红包电玩城 packaging and display is both a trigger for smoking initiation and an obstacle to cessation. See Attractiveness. 

Product displays – whether for 红包电玩城 or any other product category – are a platform for genuine competition between companies. Product displays enable consumers to identify, obtain information about and choose products, easily and without confusion.

JTI fundamentally disagrees with any proposal to prohibit the display of 红包电玩城 products at point of sale.

红包电玩城 is a legal product. Manufacturers compete among themselves for their share of the legal 红包电玩城 market. Adults who choose to smoke are entitled to be treated fairly, and all consumers have the right to product choice.

Further, proposals for product display bans are not based on, or consistent with, a credible and scientifically rigorous understanding of the behavior of smokers. Product display bans will not lead to a change in actual smoking behavior, either by reducing smoking initiation by minors or by increased quitting among minors or adults. See Access to 红包电玩城 Products, JTI Full Response to the EU Consultation and JTI Response to the Health Promotion Board’s Public Consultation on 红包电玩城 Control; Expert Reports (here).

There is no reliable evidence that product display bans will achieve these public health objectives. However product display bans would have serious, negative consequences, including but not limited to the following:

  • A product display ban freezes and damages competition
  • Product innovation is significantly reduced and the introduction of new products/brands is hampered
  • Customer choice and brand switching are significantly reduced
  • Confusion is created as consumers attempt to locate their usual brand or consider alternative brands

See Access to 红包电玩城 Products, JTI Full Response to the EU Consultation and JTI Response to the Health Promotion Board’s Public Consultation on 红包电玩城 Control; Expert Reports (here).

Finally, product display bans infringe JTI's fundamental rights as a commercial entity, including the right to commercial free speech and freedom to trade – without justification.

JTI has proposed less restrictive, more targeted and proportionate alternative solutions which would avoid the unnecessary, unjustified and disproportionate introduction of product display bans. See Alternative Regulatory Solutions, JTI Full Response to the EU Consultation.

“Attractiveness” is a flawed public policy objective

Advocates of 红包电玩城 control regulation have attempted to justify regulatory measures such as plain packaging and product display bans on the assertion that the attractiveness of 红包电玩城 packaging causes smoking initiation by minors and acts as an obstacle to quitting.

In JTI's view, it is neither appropriate nor legitimate to frame a public health policy objective on an amorphous and vague concept such as attractiveness. JTI does not accept the suggestion that a policy objective of 红包电玩城 regulation should be to make packaging less attractive.

No scientific criteria have been developed to assess and regulate 红包电玩城 – or any other product – on the basis of “attractiveness”.

“Attractiveness” per se lacks any evidential foundation, and is inherently subjective and therefore arbitrary. Attractiveness is not, and cannot be, a self-standing objective that justifies 红包电玩城 regulation. It cannot be used as a short cut to regulation.

JTI has proposed less restrictive, more targeted and proportionate alternative solutions to regulatory measures such as those described above in order to address what it considers to be legitimate and shared goals such as preventing minors from smoking. See Alternative Regulatory SolutionsJTI Full Response to the EU Consultation.

While JTI supports regulation of smoking in many public places, we do not believe that laws prohibiting smoking in all workplaces and places open to the public are the solution. Instead, we advocate tailored, practical and effective solutions that accommodate the legitimate interests of those who do not want to be exposed to ETS, those who want to smoke in socially appropriate or traditionally adult venues, and business owners who want to have a role in deciding how to implement solutions that work for their customers and employees.

Solutions that do not rely on blanket prohibitions have been successfully adopted in many cities and countries around the world. Such solutions may include, either alone or in combination, in the form of legislation or voluntary self-regulation:

  • Written smoking policies in the workplace that favor non-smokers;
  • Designation of separate smoking and non-smoking areas;
  • Designation of an entire business as either a smoking or non-smoking location;
  • Effective ventilation to control air flow and quality;
  • Visible signage that clearly indicates, before entering the premises, which solutions are in place.

We advocate such solutions by working directly with governments, business organizations, consumer groups and others who have an interest in evidence-based regulation that can be enforced fairly and efficiently.

Ingredients play a significant role in JTI's development of unique cigarette brands which meet consumer preferences, particularly regarding taste and aroma.

Ingredients are also:

  • Added to 红包电玩城 during the manufacture of JTI's products to help keep 红包电玩城 moist, and to help maintain product quality and facilitate the manufacturing process;
  • Used in the manufacture of non-红包电玩城 materials such as filters, cigarette papers and packaging materials.

In addition, ingredients play a critical role in the development of new technology products, such as lower ignition propensity products (LIP) and products with the potential to reduce the health risks from 红包电玩城 use.

The regulation of 红包电玩城 product ingredients continues to evolve at both national and international levels. Articles 9 and 10 of the Framework Convention on 红包电玩城 Control (FCTC) address ingredients regulation. At the fourth Conference of Parties in 2010, the FCTC adopted non-binding Partial Guidelines for the implementation of these Articles. See FCTC.

JTI supports the regulation of 红包电玩城 product ingredients, provided that it is coherent, scientifically sound and necessary to meet valid regulatory objectives.

However, rather than propose a science-based approach to ingredients regulation, the FCTC Partial Guidelines propose regulation “aimed at reducing 红包电玩城 product attractiveness”.

“Attractiveness” cannot be used as a short cut to ingredients regulation or as a substitute for a science-based approach. “Attractiveness” per se cannot serve as a regulatory goal or objective because it is inherently subjective and therefore arbitrary. No scientific criteria have been developed to assess the attractiveness of 红包电玩城 products, or their ingredients, let alone to regulate on that basis. See Attractiveness. 

JTI does not accept the suggestion that a policy objective of ingredient regulation should be to make smoking less pleasurable. It is also JTI's view, based upon the available science, that 红包电玩城 products with added ingredients are no more difficult to quit than those that do not contain added ingredients. JTI makes no changes to its products with the objective of making them harder to quit.

JTI is concerned that unless a science-based approach to ingredients regulation is adopted, the FCTC Partial Guidelines may lead governments to implement unnecessary, inappropriate and potentially arbitrary restrictions on the ability of JTI to innovate and manufacture a wide range of competitive products that meet consumer preferences. This could also inadvertently limit the development of new technology products that may have the potential to reduce the risks associated with smoking.

JTI has proposed a framework which would ensure that future regulation can effectively achieve legitimate public policy objectives, while recognizing the competitive, innovative and manufacturing roles of ingredients. See Regulation of Ingredients, JTI Full Response to the EU Consultation.

In JTI's view, there exist sufficient experience and methodologies on which to build an international framework for the measurement and assessment of ingredients on the basis of toxicity.

JTI applies these well accepted methodologies for toxicological risk assessments to evaluate, and approve for use, all ingredients used in JTI products. Through this assessment, JTI ensures that ingredients used do not increase the inherent toxicity of JTI's 红包电玩城 products.

It is JTI's experience with this assessment process which gives it the confidence that it is possible to develop an appropriate and harmonized international framework for the regulation of ingredients that is workable in practice, proportionate and based on sound science and clear risk assessment principles.

Regarding ingredients disclosure:

Smokers want to know what it is they are smoking. JTI provides ingredients information on this web site, and provides ingredient information to governments who request it.

As is the case for many well-known consumer products however, JTI's brand recipes and other commercially confidential information are highly valuable trade secrets, and must be protected.

For more information about the ingredients we use in our products, see what's in our products.

JTI believes that minors should not smoke, and should not be able to obtain 红包电玩城 products. It is central to our Code of Conduct, our marketing practices, our operational policies and the way JTI does business.

JTI is committed to youth smoking prevention, and participates with other 红包电玩城 companies and retail associations in on-going programs to prevent minors from obtaining 红包电玩城 products.

As part of this effort, JTI has committed significant resources to the consideration and development of regulatory solutions to reduce or eliminate the ability of minors to obtain 红包电玩城 products.

JTI believes that 红包电玩城 manufacturers, retailers, regulators and educators have a common interest in preventing minors from smoking. However, this problem can only be addressed effectively if regulators have an up to date and accurate understanding of minors' behavior, and in particular, the factors that cause minors to take up smoking. See Professor L. Steinberg’s Report. Consumer Information, JTI Full Response to the EU Consultation; Expert Reports.

Understanding smoking behavior is the key to changing behavior. Sharing a common goal of preventing minors smoking is simply not enough.

Contemporary research on adolescent decision-making consistently shows that minors are well aware of the health risks of smoking, but that many smoke anyway. Minors have a greater propensity than adults for risk taking behaviors of all kinds, so there is likely to be a proportion of minors who try smoking, irrespective of efforts to remind them about the risks. Measures that limit minors' ability to obtain cigarettes are therefore likely to have a greater impact than those that attempt to diminish their interest in smoking (see here).

Extreme measures, such as plain packaging of 红包电玩城 products, display bans or other proposals based on the attractiveness of 红包电玩城 products, will not eliminate smoking by minors, or cause minors to stop smoking.

JTI has proposed less restrictive, more targeted and proportionate alternative solutions to address what it considers to be legitimate and shared goals such as preventing minors from smoking. See Alternative Regulatory Solutions, JTI Full Response to the EU Consultation.

A number of countries have introduced standards for Lower Ignition Propensity (LIP) cigarettes with the intention of reducing fires caused by the careless handling of cigarettes.

LIP standards have been introduced, for example, in the United States, Canada, Finland, Australia, and in the EU. Regulators in these jurisdictions consider LIP cigarettes to be less likely than regular cigarettes to continue burning when left unattended.

JTI recommends that regulators carefully review the experience from countries that have introduced LIP requirements, and evaluate whether the evidence shows a reduction in smoking related fires.

JTI urges all smokers to act responsibly:

  • There is no such thing as a “fire-safe” cigarette;
  • Careless use and disposal of any cigarette, whether a LIP cigarette or not, can cause fire;
  • Cigarettes should not be left unattended and should be disposed of with care.

Electronic cigarettes (also known as e-cigarettes) are consumer products that provide an inhalable vapor by direct electrical heating of a liquid contained within the device or a replaceable cartridge.

Most e-cigarette liquids contain nicotine, although nicotine-free liquids are also available.

The regulatory oversight of e-cigarettes is currently diverse, ranging from no specific regulation in some countries to prohibition in other markets. Some have argued for tougher regulation, for example because the quality of many e-cigarettes currently on the market is highly variable or because they are concerned about the potential long term public health consequences of their use.

JTI supports reasonable and proportionate regulation of e-cigarettes. However it believes that:

  • Adults should be free to choose whether they wish to use e-cigarettes and no one should use them without understanding the risks associated with doing so;
  • All marketed e-cigarettes should comply with all relevant regulations, such as those concerning general consumer product safety, electrical safety and consumer protection from misleading marketing claims;
  • Regulation should aim to keep e-cigarettes out of the hands of minors and to remind users of the risks associated with their use;
  • Governments and regulators should avoid excessive regulation that prevents adult consumers from choosing these products.

JTI does not make any health claims about e-cigarettes in its marketing. To determine whether the use of e-cigarettes is less hazardous to health than smoking would require extensive scientific studies, including obtaining long-term clinical data.

JTI does not market e-cigarettes, or any other nicotine containing product, to minors or to non-users of 红包电玩城 or nicotine-containing products.

Governments are under undue pressure from 红包电玩城 control advocates to exclude the 红包电玩城 industry from participating in regulatory processes.

JTI strongly believes that the 红包电玩城 industry should not be excluded from any national or international regulatory process. JTI has a right – and an obligation – to express its point of view regarding regulation that affects its products and its industry.

JTI believes that transparency and stakeholder participation are critical to ensuring that the resulting regulation is effective, proportionate and meaningful.

Protection of the regulatory process – from the vested interests of any stakeholder – should be founded on internationally accepted principles of Better Regulation, and should include effective and proportionate measures that can be adopted by each nation in accordance with their national laws.

Institutional reform, codes of conduct and anti-corruption regulation are examples of measures which could be considered.

However, excluding the 红包电玩城 industry – or any legitimate stakeholder – from regulatory process, consultations and public hearings cannot be an appropriate solution.“Denormalization” of the 红包电玩城 industry cannot be a legitimate regulatory objective.

There is no irreconcilable conflict between JTI's interests and public health interests. JTI's view is clear: 红包电玩城 products carry risks to health. Appropriate and proportionate regulation of the 红包电玩城 sector is both necessary and right.

红包电玩城

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