The theory that states all cells produce new cells is called Cell Theory.

Here's a breakdown of the key points of Cell Theory:

* All living organisms are made up of one or more cells. This means that cells are the basic unit of life.

* All cells arise from pre-existing cells. This means that cells don't spontaneously appear; they always come from the division of other cells.

* Cells are the fundamental unit of structure and function in living organisms. This means that cells are responsible for all the activities that occur within a living organism.

So, in short, Cell Theory explains that life is continuous, and new cells are always created through the division of existing cells.