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Tag: China National Tobacco Corp

  • China Tobacco Deputy Head Expelled From Party

    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.

  • Smoking Persists Despite FCTC

    Smoking Persists Despite FCTC

    Photo: Tobacco Reporter archive

    China continues to grapple with significant tobacco consumption, despite adopting the World Health Organization’s Framework Convention on Tobacco Control (FCTC) two decades ago, reports The Straits Times.

    In November 2014, the State Council released a draft on national tobacco control guidelines to meet its obligations under the FCTC. However, the draft never progressed beyond the public consultation phase, which was supposed to be completed by the end of that year, according to the Singpore-based newspaper.

    As the world’s largest tobacco producer and consumer, China still boasts an estimated 300 million smokers, constituting nearly a third of global smokers. According to The Straits Times, this phenomenon persists due to various factors including social norms, affordability of cigarettes and limited public education.

    Despite efforts such as anti-smoking campaigns and banning smoking in government buildings, many individuals continue to smoke, encouraged by the ubiquity of tobacco shops, low-cost cigarettes and deeply rooted cultural practices.

    The State Tobacco Monopoly Administration (STMA), which controls the tobacco industry, also acts as a significant employer, providing jobs to over half a million people across the nation.

    In much of China, the tobacco industry is considered a prestigious employer, with its stable income, generous salaries and employee benefits. In surveys of fresh graduates, China’s big tobacco firms—largely state-owned enterprises—are consistently rated some of the best companies to work for, with degree holders happy to take on blue-collar jobs on the factory lines.

    Manufacturing some 2.4 trillion cigarettes a year, China’s tobacco industry posted a profit of RMB132 billion ($18.3 billion) in profits in 2022, up nearly 12 percent from the year before.

    STMA’s operational arm, the China National Tobacco Corp., does not report sales figures but posted a record taxable income of RMB1.44 trillion in 2022. By comparison, the second-highest taxpayer, the Industrial and Commercial Bank of China, reported taxable income of RMB109 billion.

    While the anti-smoking lobby has been urging the government to sever the ties between the industry and its regulator, few expect that to happen, citing a lack of political will.