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China: Overview

China is the world’s largest producer and consumer of tobacco. There are a range of estimates for the number of smokers in China; between 57 percent and 67 percent of males and between 1.9 percent and 3.1 percent of females in China smoke.

China is home to about 300 million smokers, or one-third of the world’s total smokers. Each year, China consumes an average of 1,771 cigarettes per person. In 2006, according to the China State Tobacco Monopoly, 2021.8 billion cigarettes were manufactured in China, and most were consumed by Chinese smokers.

According to the World Health Organization, China ratified the Framework Convention on Tobacco Control on Oct. 11, 2005. Legislation and regulations are pending in China that would satisfy the country’s requirements under the Framework Convention.

In China, cigarettes are taxed through a hierarchical scheme that levies the highest taxes on the most costly brands, keeping economy cigarette prices low. More expensive cigarettes are taxed at a rate of 45 percent while less expensive cigarettes are taxed at rate of 30 percent. All cigarettes are also subject to a fixed tax of 150 RMB per 50,000 cigarettes.

Warning labels on cigarette packages contain six Chinese characters with the message “Smoking is harmful to your health.” Tobacco manufacturers use creative and powerful messages to publicize their brands. One particular company uses a double-meaning translation of the phrase ‘Love the Chinese Nation’ to promote its brand.

A 1994 law on advertising restricts tobacco advertising through radio, film, television, newspapers, or periodicals. Additionally, advertisements are prohibited in other public places, such as cinemas, theaters, waiting rooms, and at sports competitions.

Existing smoke-free legislation prohibits smoking on most public transportation and some local regulations ban smoking in additional public places.

Sources: WHO, Euromonitor, ACS: Tobacco Atlas (second edition), China State Tobacco Monopoly Administration, 2007 China Tobacco Control Report (issued by PRC Ministry of Health), FCA