Vaping is still popular with Chinese investors, despite a growing backlash

When Wang Yi explained in a blog post why vaping could be the country’s billion-dollar opportunity, the former investment head at China’s biggest cybersecurity firm began simply:

Despite a recent outbreak of lung disease in the US sparking fear about the health impact of vaping, business is booming in China.

Former Uber China executive Kate Wang started vaping company Relx while two executives from embattled smartphone company Smartisan made their own startups called Flow and Vvild, just to name a few. Another example? Celebrity entrepreneur and Forbes 30 under 30 member Cai Yuedong with his brand Yooz.

Over the past few years, e-cigarettes have turned from a niche product into an investor’s dream. None have been more so than Juul, which was valued at $38 billion by the end of last year. Now company CEO Kevin Burns has stepped down amid the recent controversy.