Tag: China

  • Chinese Tobacco Heading to Dominican to Boost Cigar Exports

    Chinese Tobacco Heading to Dominican to Boost Cigar Exports

    Dominican Tobacco International Ceiba general manager Bob López announced a “landmark collaboration” that will bring Chinese cigar tobacco to a new Dominican factory in Villa González in an effort to produce “cigars with unique flavors, greater consistency, and stronger market differentiation.”

    “By uniting Dominican craftsmanship with Chinese cigar tobacco, we are creating opportunities that not only increase the industry’s international competitiveness but also enrich the diversity of production styles and techniques in the Villa González region,” López said.

    The Chinese tobacco will be sourced from Sichuan, Hainan’s Danzhou Cigar Base, and Tianhe Company, and will be blended with Dominican craftsmanship. Positioned within a free trade zone, the factory is equipped with state-of-the-art infrastructure and large-scale capacity, ensuring compliance with international standards and efficient worldwide distribution.

    According to López, the venture will not only reinforce the Dominican Republic’s position as a leader in premium cigar manufacturing but also expand export opportunities to North America, Europe, and Asia. By fusing tradition with innovation, the project seeks to accelerate the internationalization of new brands, drive economic growth in Villa González, and diversify global cigar offerings. The first production phase is scheduled for early 2026, supported by ongoing recruitment of local talent.

  • China’s North Korean Smuggling Problem Not Gone Yet

    China’s North Korean Smuggling Problem Not Gone Yet

    While a report from Daily NK last week said China’s crackdown on smuggled cigarettes from North Korea ground the illegal activities to a halt, a story yesterday (August 26) from Radio Free Asia (RFA) suggests otherwise. Smugglers and traders told the news outlet that the combination of surging demand and lenient penalties (compared to other contraband) makes the trade highly profitable.

    Residents in North Korea’s Yanggang province told RFA that the cross-border trade, which began about two years ago, has expanded sharply in recent months. Smugglers move 20–50 boxes per trip, each containing 500 packs, earning around 50 yuan ($8) profit per box.

    While legally imported North Korean brands such as Chosun are sold mainly as pricey tourist souvenirs, smuggled cigarettes are mostly in unmarked packaging and then rebranded by Chinese manufacturers in Jilin province and sold as domestic products. North Korean cigarettes cost as little as 2,500–3,500 won ($0.36–0.50) per pack, far cheaper than Chinese brands. According to RFA, factories such as Korea Sonbong General Corporation and Paeksan Cigarette Company supply the bulk of production near the border.

    China, home to more than 300 million smokers, consumes about one-third of the world’s cigarettes, making the black market highly lucrative. Sources say the smuggling trade is expected to keep growing due to the low cost of North Korean tobacco and the relatively light punishments for offenders.

  • China Tobacco International Posts Strong H1 2025 Results

    China Tobacco International Posts Strong H1 2025 Results

    China Tobacco International reported its unaudited consolidated interim results for the first half of 2025 this week, showing a revenue increase of 18.5% Y-Y to HK$10.32 billion ($1.3 billion). Profit for the period rose 6.3%, with profit attributable to shareholders up 9.8%. The board declared a 26.7% hike in interim dividends per share, underscoring its focus on shareholder returns.

  • Malaysia: With Rising Illicits and Looming Ban, Vape Sellers Told to Switch Businesses

    Malaysia: With Rising Illicits and Looming Ban, Vape Sellers Told to Switch Businesses

    Vape sellers in Sarawak, Malaysia, have been told to shift into other lines of business as the state government moves toward a full ban on the sale and use of electronic cigarettes. Deputy Minister for Youth, Sports and Entrepreneur Development Ripin Lamat said businesses should “gradually transform and venture into more promising industries” such as food and beverage or agribusiness, warning that vape products “will destroy our young generation and ultimately undermine the values of future generations.”

    The Sarawak government is preparing legislation to formalize the ban, including a Cabinet paper that is currently under review with input from the state attorney general, secretary, and financial officer. The move follows earlier remarks from state officials linking vape use to drug abuse risks, and aligns Sarawak with several other Malaysian states.

    Similar bans have led to rising black market trade in other markets, and business officials worry the results will be similar in Malaysia, where illicit products are already becoming a problem. A Nielsen survey from May found that 55% of cigarettes sold in Malaysia are illicit, mostly smuggled from Vietnam, China, and Indonesia via ship-to-ship transfers along the east coast, costing the government RM2 billion ($480 million) in lost tax revenue each year.

    Customs has stepped up enforcement with AI scanners, body cameras, and tighter port controls, raising revenue collection by 19% in 2024. However, syndicates remain entrenched, aided by corruption and weak penalties, and officials warn that without stronger naval patrols, tougher laws, and better resources, the black market will continue draining state funds.

  • China’s Crackdown Chokes Off N. Korean Cigarette Smuggling

    China’s Crackdown Chokes Off N. Korean Cigarette Smuggling

    North Korea’s once-lucrative cigarette smuggling operations into China have ground to a halt after Beijing launched a sweeping crackdown on illicit tobacco distribution, officials said. Daily NK sources said Chinese police and the State Tobacco Monopoly Administration arrested traders, confiscated contraband, and tracked deliveries via firms like SF Express and ZTO Express since August 3. The clampdown left major North Korean firms, including Korea Sinhung Trading Corp. and Amrokgang Tobacco Co., scrambling for new foreign currency sources.

    Chinese partners have suspended dealings, fearing heavy fines and confiscations. “Activities to earn foreign currency through cigarette smuggling run into trouble as Chinese traders quit the business all at once,” one North Korean source said.

    With distribution channels collapsing, Pyongyang’s trading companies are now under pressure to find alternative exports. Traders in China say the current campaign is harsher and longer-lasting than past crackdowns, raising doubts about the future of North Korea’s tobacco trade.

  • Former Chinese Tobacco Head Sentenced to 15 Years for Bribery

    Former Chinese Tobacco Head Sentenced to 15 Years for Bribery

    Today (August 12), the former deputy director of China’s State Tobacco Monopoly Administration, Xu Ying, was sentenced to 15 years in prison for accepting bribes, a court in Anyang, Henan Province, announced. He was fined 5 million yuan ($700,000), with over 65 million yuan ($9.1 million) in illicit gains confiscated.

    The court found that between 2010 and 2024, Xu used his positions to help others with administrative approvals, business operations, and staff recruitment in exchange for bribes.

    Earlier this year, former China National Tobacco Corporation general manager Ling Chengxing was sentenced to 16 years in prison for similar charges between 2006 and 2023.

  • China Fuels Zimbabwe’s Record-Breaking $1.2B Tobacco Season

    China Fuels Zimbabwe’s Record-Breaking $1.2B Tobacco Season

    Zimbabwe’s 2025 tobacco marketing season closed yesterday (August 7), with farmers earning a record $1.2 billion from 352.7 million kilograms of the golden leaf, significantly surpassing the 300 million kg target. About 11% of total production was sold to China, according to the Tobacco Industry & Marketing Board (TIMB).

    “The global demand for tobacco also pushed the prices,” TIMB chairman Patrick Devenish said in an interview. “The Chinese are our biggest customers and the demand for nicotine through the vaping business also had a good effect for us.”

    According to TIMB data, the average 2025 price was $3.32/kg, slightly down from last year’s $3.43. Auction prices peaked at $4.99/kg, while contract growers saw highs of $6.30/kg. Lands and Agriculture Permanent Secretary Prof. Obert Jiri hailed the season as a milestone for the Tobacco Value Chain Transformation Plan, urging greater local value addition, which currently stands at 10.15%, toward a 30% goal under the National Development Strategy 1.

    With 93% of production under contract farming, the government is working to refine the system and has proposed a $50 million agriculture fund. Stakeholders emphasized the need for local financing to reduce reliance on foreign currency and boost cigarette manufacturing, which currently produces 4 billion sticks annually against a 17 billion-stick capacity.

    Zimbabwe, the world’s fifth-largest tobacco producer, has over 140,000 active farmers.

  • Study: Time to Age Tobacco Leaves Shortened

    Study: Time to Age Tobacco Leaves Shortened

    Researchers in China explored how microbial aging affects the flavor quality of flue-cured tobacco and reported that under controlled conditions for 12 months, they were able to replicate results that typically take two to three years to occur naturally.

    Bacillus, particularly Bacillus velezensis TB-1, was identified as a key microorganism linked to aroma development during aging.

    Using solid-state fermentation, B. velezensis TB-1 was applied to low-grade tobacco leaves, significantly boosting levels of important volatile compounds like 2-methoxy-4-vinylphenol, megastigmatrienone, and 2-methyl-hexanoic acid, which are associated with desirable flavors. Sensory evaluation confirmed improved aroma and taste, demonstrating a promising strategy for enhancing tobacco quality through microbial fermentation.

    The initial findings were filed with Frontiers in Microbiology today (June 17), with a formal paper expected to be published soon.

  • Study: Chinese Going Online to Bypass Flavor Ban 

    Study: Chinese Going Online to Bypass Flavor Ban 

    More than 90% of stores selling e-cigarettes in two major Chinese cities provided WeChat accounts or QR codes for quick delivery services, allowing consumers to bypass a nationwide ban on online sales that took effect in May 2022, a new study has found. Research conducted by the Health Communication Institute of Fudan University in Shanghai, compared e-cigarette stores in Shanghai and Chengdu, Sichuan province, before and after the implementation of the regulations.  

    In the first observation period in 2021, about 25% of stores offered a WeChat account and 17% provided a QR code for delivery services. These figures jumped to 90% and 91%, respectively, in the second observation period (December 2023 to March 2024), indicating a significant shift of customers from in-person to online purchases.

    The regulations explicitly prohibit the sale of flavored e-cigarettes other than tobacco flavor and the sale of e-cigarette products to minors. They also ban the use of vending machines for such products and require warning labels on packaging. However, the study revealed that one-third of the surveyed stores continued to sell flavored e-cigarette cartridges, and only 83% had implemented age restrictions on sales.

  • FDA and CBP Seize $34M in Illegal E-Cigarettes in Chicago

    FDA and CBP Seize $34M in Illegal E-Cigarettes in Chicago

    The U.S. Food and Drug Administration (FDA) today (May 22) announced the seizure of nearly 2 million units of unauthorized e-cigarette products in Chicago, with an estimated retail value of $33.8 million. The seizures, which occurred in February of this year in collaboration with U.S. Customs and Border Protection (CBP), were part of a joint federal operation to examine incoming shipments and prevent illegal e-cigarettes from entering the country.

    During this operation, the team uncovered shipments of various illegal e-cigarette products, almost all of which originated in China and were intended for shipment to various U.S. states. FDA and CBP personnel determined that, in an apparent attempt to evade duties and the review of products for import safety concerns, many of these unauthorized e-cigarette shipments contained vague product descriptions with incorrect values. Upon examining shipments, the team found several brands of unauthorized e-cigarettes, including Snoopy Smoke, Raz, and others.

    “The FDA, working with our federal partners, can and will do more to stop the illegal importation and distribution of e-cigarette products in the United States,” said FDA commissioner Marty Makary. “Seizures of illegal e-cigarettes keep products that haven’t been authorized by the FDA out of the United States and out of the hands of our nation’s youth.”

    In the lead up to this operation, the joint FDA and CBP team identified potentially violative incoming shipments and completed other investigative work. The team was also able to successfully implement several new internal efficiencies and procedures, building off previous operations.

    “We continue to see an increased number of shipments of vaping-related products packaged and mislabeled to avoid detection,” said Bret Koplow, acting director of the FDA’s Center for Tobacco Products. “However, we have been successful at preventing these shipments from entering the U.S. supply chain – despite efforts to conceal the true identity of these unauthorized e-cigarette products.”

    Most shipments violated the FDA’s Federal Food, Drug, and Cosmetic Act, while some products were also seized for Intellectual Property Rights violations for unauthorized use of protected trademarks. All of the e-cigarette products seized in this operation lacked the mandatory premarket authorization orders from the FDA and therefore cannot be legally marketed or distributed in the United States.

    Standard practice for products forfeited to the government include disposing of the products in accordance with the law. In the case of unauthorized new tobacco products, including e-cigarettes, that generally means they will be destroyed.

    FDA also sent, for the first time, import informational letters to 24 tobacco importers and entry filers responsible for importing these illegal e-cigarettes. The letters advise the recipients that it is a federal crime to make false statements or entries to the U.S. government, and the FDA seeks information on the steps they have taken to ensure compliance with applicable federal tobacco laws and regulations. Specifically, the letters advise the firms to ensure their import entries contain complete and accurate information moving forward. Failure to do so may also be viewed as an intentional attempt to circumvent the FDA’s review of the shipment. Firms are requested to respond to the letters within 30 days with the requested information.