Category: China

China Tobacco Deputy Head Expelled From Party

Credit: Some Means
Xu Ying, the deputy head of China’s State Tobacco Monopoly Administration, commonly referred to as China Tobacco, has been expelled from the Communist Party of China and removed from his position due to serious violations of discipline and laws, according to the country’s top anti-corruption authorities on Wednesday.
The probe has been carried out by the Communist Party of China Central Commission for Discipline Inspection and the National Commission of Supervision.
Xu, 59, was found to have reportedly accepted gifts and money and attended banquets in violation of regulations. He also failed to report personal matters truthfully and sought benefits for multiple relatives regarding employment and job transfers, the top anti-corruption authorities said in a statement.
It added that Xu abused his power and misused public resources to seek benefits for others and for personal gain. He allegedly engaged in significant power-for-money transactions, using his position to seek benefits for others in administrative approvals, business operations, and employee recruitment, and illegally accepting large amounts of money and goods.
The top anti-corruption authorities identified Xu’s behavior as severe violations of the Party disciplines. Therefore it decided to expel him from the Party and confiscate all his illicit gains, reports China Daily.
The statement added that his suspected violations of national laws will be transferred to prosecutors for further criminal review and investigation.
Public information shows that Xu started his career in the administration in 1988. Since then, he has worked for the nation’s tobacco industry for decades.
In March 2014, he became the deputy head of the tobacco administration.
November 20, 2024
China: Chain-smoking marathon runner banned

Image: Iryna
A 52-year-old man has been banned from Xiamen Marathon’s races for two years after he chain-smoked throughout the C&D Xiamen Marathon 2024 on Jan. 7, 2024, according to The Independent. He completed the race in three hours and 33 minutes, but his time and ranking were voided.
The smoker has also been reported to the Chinese Athletics Association for further penalties.
The man’s smoking was verified by “race supervision, referee reports, timing chip data, race videos, pictures and other materials,” according to the organizing committee.
The runner is popularly known as Uncle Chen and is often called “Smoking Brother,” according to Canadian Running magazine.
Chen reportedly smoked during a 2022 marathon as well.
Smoking is listed as one of the “(punishable) uncivil behaviors” on the Xiamen Marathon’s website along with “open defecation, littering, trampling on the flowers and grass and other behaviors that might affect other runners.”
Other Chinese cities have begun addressing smoking during marathons and introducing rules against “uncivilized behavior.” The Chinese Athletics Association introduced a proposal last year aimed at encouraging healthier participation and reducing smoking during road-running events. According to the proposal, participants caught not adhering to the new rules would be subject to disqualification.
Chen is an ultramarathoner, and images of him smoking during races first emerged in 2018.
January 29, 2024
Oliva Launches ‘Year of the Dragon’ Cigar
Nicaragua-based Oliva Cigars has partnered with China Duty Free Group (CDFG) to launch a limited-edition “Year of the Dragon” premium cigar line.
The MSRP has been set at $35 per cigar or $350 per box of 10 cigars. Production is limited to 1,500 boxes, and they are expected to go on sale in mid-February.
Each box features a dragon design, paying homage to the creature and the spirit of the Chinese New Year.
Credit: Oliva
The Year of the Dragon is a Churchhill produced in Oliva’s factory in Esteli, Nicaragua, and features an Ecuadorian Habano sun-grown wrapper over a Nicaraguan binder and Nicaraguan fillers.
“We are thrilled to introduce the Oliva Year of the Dragon Churchill Cigar in celebration of the Chinese New Year in cooperation with CDFG,” Oliva Cigars Export Manager Thomas Gryson said in a press release. “This limited-edition collection is a true embodiment of our dedication to quality and craftsmanship.
“We have carefully curated this offering to provide aficionados with a unique and culturally significant cigar experience, making it a must-have for collectors and enthusiasts alike.”
January 13, 2024
A Leap Forward for Public Health?

Image: waldemarus
China’s new rules on vape manufacturing will help tackle illicit trade only if they are properly enforced.
By Ian M. Fearon
The vape industry is in the midst of a growing crisis and facing an existential threat. This may seem like a pessimistic, and perhaps provocative, statement, but without those within the industry taking action to change course, the lives of the billion smokers across the globe could be placed at an increased risk.
The vape industry has always been controversial, although wrongly so. After all, nobody in their right mind doubts that when cigarettes are substituted with e-cigarettes, there are huge gains for both individual and population health. Despite this, those in “tobacco control” have become, and will remain, steadfastly resolute in their desire to remove vapes from markets across the world. While their motives are not abundantly clear, they certainly don’t appear to mesh with a desire to improve global health and may instead represent a nicotine prohibitionist standpoint. But their work is adding to the growing likelihood that vapes could be banished across the world. Or, as is currently the case in Australia, confined to prescriptions issued by physicians and not as freely available as, well, cigarettes.
Perhaps the biggest single threat to the vape industry is the mass marketing of both illegal and illicit products across the world. Wherever you look, in the United States and Canada, across Europe, in Australia and New Zealand, and pretty much any other global market in which vapes are sold, illegal products are abundant. They are causing problems by being made available to youth with scant regard for the impact this may have on public health and on the future of a lifesaving industry. In the U.K., recent assessments of vapor from illegal and illicit vapes have found them to contain high levels of poisonous metals, such as lead, or contain levels of nicotine higher than those allowed under U.K. regulatory law. And a recent investigation found evidence of the production of counterfeit products with inadequate manufacturing quality control and unhygienic product testing processes. The illicit trade is hugely damaging to the legitimate industry and makes the work of vape prohibitionists in tobacco control so much easier.
One way of stemming the flow of potentially dangerous illicit products is to act at the source. China is acknowledged as the birthplace of the modern e-cigarette, following the pioneering work of the Chinese pharmacist, Hon Lik, in the early 2000s. Chinese companies are also by far the world’s biggest e-cigarette manufacturers, with production coming mainly from the estimated 1,000 factories located in China’s Silicon Valley, Shenzhen. Recent figures show that Chinese e-cigarette manufacturing is growing at record levels, with $5.5 billion worth of vapes manufactured in the country in the first half of this year, up by almost 30 percent compared with the first half of 2022. Between $300 million and $400 million worth of these are imported each month into the U.S. and the U.K., the largest export destinations for Chinese e-cigarettes. Remarkably, $20 million worth are exported each month to Australia, a marketplace in which e-cigarettes are legal only on prescription. In that country, the end result will undoubtedly be greater restrictions on vaping, perhaps even for authorized prescription products, and many other countries are considering similar actions.
Regulating the expanse and diversity of Chinese vape manufacturing is not an easy task, but doing so would have a profound impact globally as it could make a huge dent in the supply of illicit vapes across the world. Recently, the Chinese State Tobacco Monopoly Administration (STMA) issued guidelines that may promise to clean up Chinese vape manufacturing. These guidelines are lengthy and complex but focus on a single area: the establishment of quality management systems in vape manufacturing facilities. To comply, manufacturers must, at least, implement quality and safety standards, assess and control their e-cigarette production, properly train their personnel, ensure manufacturing and distribution traceability, and complete export registrations and declarations. Products must not only be manufactured under stringent conditions, but they are also required to meet any relevant legal requirements in their export destination. And importantly, manufacturers must halt production if any safety issues arise or are brought to their attention in order to prevent and reduce harm. According to the guidelines, governments and other international organizations can report issues to Chinese authorities and have their concerns addressed.
The biggest question on everyone’s lips has to be this one: Will the STMA guidelines be enforced—and how? If we look at the status quo, regulations elsewhere are being ignored by many manufacturers and distributors of illicit vaping products, putting profit first and public health second. In the U.S., the Food and Drug Administration issues a constant stream of warning letters threatening enforcement action. But much like the fairground game whack-a-mole, as soon as one company or vape source has action taken against it, another one takes its place. The FDA’s finite resources cannot tackle this constant evolution. In the U.K., despite the scale of the vape black market, a recent assessment of enforcement actions showed that even when action is taken against distributors of illicit and potentially dangerous vapes, local Trading Standards teams have issued fines lower in aggregate than the maximum allowed by law of £2,500 ($3,181). The situation is analogous to the illicit cigarette trade of years past in which the potential financial gains far outweighed the likely punishment.
The question then becomes: Will the new STMA guidelines change the supply and distribution of illicit vapes, or, as has been the case in other jurisdictions, will the guidelines be weakly enforced? This concern, that the new guidelines will be meaningless and unenforced, is shared by the U.S. Smoke-Free Alternatives Trade Association (SFATA). When asked for their views on the new guidelines, SFATA President and CEO April Meyers suggested that while the new guidelines could theoretically increase the quality of vapor products coming out of China, she was unwilling to place any bets on such an outcome. Citing the scope and complexity of the political landscape in China, Meyers doubts that protecting the youth of other nations is at the top of regulators’ minds in Beijing, especially when there is so much money involved. Such a view is understandable given that the guidelines are suggesting that the Chinese government can fix enforcement issues elsewhere in the world.
Without doubt, the new Chinese guidelines are a positive step. The guidelines recognize the public health issues regarding the manufacturing and distribution of illicit vapes and offer a potential mechanism through which this damaging illegal trade can be eroded. But without strict enforcement, and instead relying on manufacturers to interpret the guidelines, implement appropriate quality control procedures, and to self-police, the guidelines may do little to alter the current status quo.
It’s a major irony that those companies already committed both to lawful distribution of vapor products and to the improvement of public health are facing action from regulators in the form of flavor bans and other restrictions while the illicit trade carries on regardless. The industry needs guidelines and product standards, but what it needs more than that is stricter enforcement. And stricter enforcement should include better approaches to identify and prevent illicit products from crossing borders, not just identifying them at the point of manufacture. This applies not just in China but everywhere in the world where vapor products can be sold. The existence of lifesaving consumer vapor products is at stake and, perhaps more importantly, so is public health. With the new Chinese guidelines, we are moving in the right direction. But without proper enforcement, we may carry on, in public health terms, walking backward.
Ian M. Fearon is chief scientific officer at McKinney Regulatory Science Advisors.

September 1, 2023
Former China Monopoly Leader Arrested

Image: Bonsales
He Zehua, former deputy chief of China’s State Tobacco Monopoly Administration, has been arrested on charges of alleged bribe taking, reports China Daily.
The Supreme People’s Procuratorate, the Liaoning Provincial People’s Procuratorate ordered the arrest. His case was investigated by the National Commission of Supervision.
July 25, 2023
Guidelines for Exported Vapes
Image: Tobacco Reporter archive
China’s State Tobacco Monopoly Administration released the Guidelines for Promoting the Building of Quality Assurance Systems for Exported Electronic Cigarette Products on July 20, according to 2Firsts, which published a translated version of the release.
The guidelines consist of 18 articles covering the following:
clarifying that enterprises are the main responsible entities for the building of quality assurance management systems for exported electronic cigarette products;
specifying the main content for the building of quality assurance management systems for exported processes, allocation of production resources, the establishment of sound systems, standardization of product packaging, traceability of logistics and transportation, and export declaration and registration requirements; and
specifying the requirements for the building of quality assurance management systems for exported electronic cigarette products.
July 21, 2023
China Companies Crack Down on Nepotism

Photo: David Carillet
Several subsidiaries of China’s State Tobacco Monopoly Administration (STMA) have stated that close relatives of employees in leadership positions should not be hired in order to prevent nepotism and ensure fairness, reports China Daily.
A notice from the Shandong Tobacco Monopoly Administration stated that new college graduates who are spouses or immediate family members of company leaders should not be employed. It also stated that relatives within three generations and those related by marriage should not be hired.
Tobacco monopoly administrations in Shanxi, Qinghai, Gansu, Henan and Yunnan released similar notices this year.
As China’s economic recovery loses momentum, more graduates are opting for stable jobs at state-owned enterprises, making competition for such positions more intense. Online citizens said that preventing close relatives of workers at these enterprises from being hired would create a more fair employment environment, and they called for more transparent hiring practices.
The STMA implemented restrictions on nepotism in job hiring in 2020 while the Organization Department of the Communist Party of China Central Committee and the Ministry of Human Resources and Social Security issued requirements in 2019 to prevent nepotism in government institutions.
There have been frequent reports of nepotism in state-owned enterprises in the finance, telecommunications, electric power and tobacco sectors, according to a 2020 Central Commission for Discipline Inspection and the National Commission of Supervision release.
July 17, 2023
Hong Kong to Lift Ban on Vape Shipments

The government of Hong Kong has decided to reverse its ban on the transshipment of vapor products, reports Loadstar.
Media reports claim the banned cargo amounts to about 330,000 tons a year—the equivalent of some 10 percent of Hong Kong’s annual export volumes by air, according to the Hong Kong Association of Freight Forwarding and Logistics.
The value of the re-export cargo affected by the ban was estimated to exceed CNY120 billion ($17.33 billion).
While some transshipment by air had continued to be permitted, beginning in April of last year, vapes entering Hong Kong by land or sea for onward transport by air were banned. However, with the bulk of these products made in neighboring Dongguan, exporters were keen to ship them via land to Hong Kong International Airport.
Once the proposal is passed, the goods will be able to enter Hong Kong through a secure channel on dedicated barges and be delivered straight to the airport.
“The scheme is only to facilitate direct transshipment through Hong Kong, and the goods will not be available for domestic consumption. The proposal is in response to the demand of the Hong Kong air freight industry,” said Willy Lin, chairman of the Hong Kong Shippers Council.
“We hope we could get back some flights lost to competitor airports due to [the] stoppage of shipments of e-cigarettes and related substances through Hong Kong.”
March 23, 2023
Former STMA Leader Under Investigation

Image: Alexander | Adobe Stock
Chinese authorities are investigating Zhao Hongshun, former deputy chief of the State Tobacco Monopoly Administration, for corruption, reports Xinhua News
In a statement, the Communist Party’s Central Commission for Discipline Inspection and National Supervisory Commission said that Zhao “had lost his ideals and convictions, defied Party discipline and laws, was disloyal and dishonest to the Party and resisted investigation.”
Taking advantage of his posts, Zhao sought benefits for others in personnel promotion, consorted with illegal private enterprise owners, traded power for money and received gifts and money, according to the accusations.
Zhao allegedly also engaged in profit-driven activities against Party rules, and illegally owned shares of companies.
Authorities said Zhao’s illicit gains would be confiscated and the suspected crimes will be transferred to the procuratorate for further investigation and prosecution.
January 10, 2023
Hong Kong May Resume ENDS Shipments

Photo: Tatiana Morozova
The Hong Kong government wants to resume shipment of alternative smoking products through the city to boost the air cargo industry, reports the South China Morning Post. Domestic sales would remain illegal under the proposal.
The city currently prohibits imports and transshipment of electronic nicotine-delivery devices, many of which are manufactured in neighboring Shenzhen.
“The government hopes to ensure the policy on the importation ban on alternative smoking products will be preserved while maintaining Hong Kong’s position as a leading international aviation and logistics hub,” said Pamela Lam Nga-man, deputy secretary for transport and logistics.
Hong Kong International Airport handled 5 million tons of cargo in 2021, which is about 42 percent of the city’s overseas trade worth about HKD4.34 trillion ($556 billion). Air cargo volumes fell 18 percent on average from May to October of 2022 compared with the same period last year. Some of this decline was attributed to loss of transshipment of alternative smoking products from mainland China; most of the materials were transported through Hong Kong.
Under the government’s proposal, products that arrive by sea for air shipment would use a mainland logistics park set up under a pilot transshipment scheme between the city’s airport and the mainland city of Dongguan. A scheme for secure road transport from the mainland would be set up, documents would have to accompany shipments to prevent them leaking into the black market, and products would have to be directly transferred by designated routing in Hong Kong. Goods would be delivered to restricted areas of the airport and held until flown out. Provision of advance cargo information, application of designated seal or e-lock on containers and GPS tracking of cargo would also be used.
November 29, 2022