China Tobacco, also known as China National Tobacco Corporation, has become a major player in the global tobacco market. It has a near monopoly on tobacco sales within China and is the largest cigarette producer worldwide.
Despite a decline in global cigarette consumption, China Tobacco's sales have continued to grow. The company has expanded internationally, with operations in 20 countries and offshore facilities. Its expansion has been fueled by China's "One Belt, One Road" initiative.
China Tobacco's unique position as both a corporate entity and a regulatory body creates a conflict of interest, as it can influence tobacco control policies. This conflict hampers efforts to reduce smoking prevalence in China, which has a large number of smokers.
The tobacco industry in China is economically significant, contributing 12% to the country's tax revenue. The industry's dominance has limited competition from Western brands.
The implications of China Tobacco's expansion and regulatory entanglements will be closely monitored.