The Chinese market sustains the tobacco industry

According to China’s National Bureau of Statistics, the country produced 2.4 trillion cigarettes in 2023, a 35% increase compared to 2003. According to a report by Euromonitor, China’s share of global cigarette sales reached 47% in 2022, up from 38% in 2009. Although Xi Jinping’s government has for years touted tobacco control as a public health priority, in reality, the authorities have made only modest efforts to curb the spread of tobacco, due to the state’s tax revenues.

The tobacco industry generates huge revenues for the Chinese government, which collected $206 billion in tobacco taxes in 2023—about 7% of government revenue. The monopoly of the China National Tobacco Corporation (CNTC) and an often corrupt regulatory system left to local governments have made tobacco control virtually impossible. The WHO Framework Convention on Tobacco Control, which China signed in 2003, has only limited effect in the country.

Analysts say the economic downturn will further exacerbate the smoking problem, as many people seek refuge in cigarettes. Oxford University epidemiologist Zhengming Chen believes that raising tobacco prices could significantly reduce consumption: tripling the price of cigarettes could reduce demand by as much as half while raising revenue. However, the government is more concerned about maintaining stable public revenues.