TobaccoReporter logo

Tag: China

  • Macau to Test No-Smoking Zones

    Macau to Test No-Smoking Zones

    Two pavements (sidewalks) in Macau will become trial no-smoking zones next year, officials said, noting no penalties will apply during the test. The measure aims to assess public response as the government considers wider outdoor smoking restrictions. The Health Bureau said Macau’s narrow streets limit options for smoking booths, so authorities are planning designated outdoor smoking areas with clear markings and signage. The trial follows successful smoke-free zones recently set up near several schools.

    Smoking rates in Macau have dropped 31.4% since 2012, and the government has already banned the import, export, and sale of e-cigarettes. Officials now plan to make e-cigarette possession illegal as part of tightening tobacco-control measures.

  • Great Wall Cigar Explores Partnerships with Cuba, Morocco, Indonesia

    Great Wall Cigar Explores Partnerships with Cuba, Morocco, Indonesia

    A delegation from China Tobacco Sichuan’s Great Wall Cigar Factory recently visited the embassies of Cuba, Morocco, and Indonesia in Beijing to discuss industrial cooperation and trade expansion.

    At the Cuban embassy, talks with Minister Counsellor Igor Montero Brito focused on collaboration in tobacco breeding, processing technology, and cultural exchange. The Cuban official highlighted cigars as a national symbol comparable to China’s silk and porcelain.

    In Morocco, discussions centered on leveraging the country’s strategic location to create a regional hub for cigar processing and distribution. In Indonesia, the delegation received confirmation of a recent commercial order, reflecting growing bilateral trade. Great Wall Cigar holds about 50% of China’s handmade cigar market and nearly 70% of its high-end segment, exporting to 28 countries.

  • FDA to Allocate $200M Toward Combating Illicit Vapes

    FDA to Allocate $200M Toward Combating Illicit Vapes

    As part of the continuing resolution passed by Congress and signed yesterday (November 12) by US President Donald Trump to reopen the government, the Food and Drug Administration (FDA) will be required to allocate at least $200 million of its $712 million in user fees toward enforcing regulations on electronic nicotine delivery systems (ENDS). Of this amount, $2 million will support a multi-agency task force, including the Justice Department and Homeland Security, aimed at cracking down on illegal ENDS products imported from China and other countries.

    The FDA is also required to update its 2020 ENDS enforcement guidance within one year to include flavored disposable vapes and clarify the definition of disposable ENDS products. In addition, the law updates the Imports and Exports section of the Food, Drug, and Cosmetic Act to include tobacco products, strengthening the FDA’s authority to regulate their import alongside food, drugs, devices, and cosmetics.

    The agency must provide semi-annual reports to Congress on efforts to remove illegal ENDS products from the market, with the first report due within 180 days of enactment (November 12). The FDA is also expected to submit a report detailing its work to educate retailers on which products are legally allowed for sale.

  • Bill Introduced to Allow FDA to Destroy Illicit Chinese Tobacco Products

    Bill Introduced to Allow FDA to Destroy Illicit Chinese Tobacco Products

    Last week, Senator John Cornyn and Congresswoman Beth Van Duyne, joined by Senator Martin Heinrich and Congresswoman Debbie Dingell, introduced the “Ensuring the Necessary Destruction of Illicit Chinese Tobacco Act,” also referred to as the “END Illicit Chinese Tobacco Act” (END). The legislation would amend the Federal Food, Drug, and Cosmetic Act and allow the Secretary of Health and Human Services the authority to seize and destroy adulterated, misbranded, or counterfeit tobacco products, including vapes and e-cigarettes, imported from China, specifically giving the U.S. Food & Drug Administration (FDA) authority to do so.

    “By giving the FDA destruction authority over these imports, this legislation would turn off the spigot of illicit e-cigarettes and vapes flowing from China and address the public health crisis sweeping across our nation,” Sen. Cornyn said.

    Lawmakers cited the public health risks posed by counterfeit products, which dominate illicit youth-used e-vapor brands. The END Act would extend the FDA’s existing destruction powers, currently applied to certain drugs and medical devices, to tobacco products.

    “We have seen too many illegal vapes slipping through the enforcement cracks, posing health and safety risks to Americans,” said Rep. Van Duyne. “The END Act will give federal agencies the tools that they need to destroy these counterfeit or misbranded goods before they reach our shelves.”

    The bill is supported by major health organizations—including the Campaign for Tobacco-Free Kids, American Heart and Lung Associations—and industry groups like 7-Eleven and Altria.

    The bill has been introduced, but no date for markup or committee hearing has been publicly posted thus far.

  • Former CSTMA Deputy Chief Indicted

    Former CSTMA Deputy Chief Indicted

    Today (November 4), Zhang Tianfeng, the former deputy chief of China’s State Tobacco Monopoly Administration, was indicted on charges of accepting bribes, according to the Supreme People’s Procuratorate. Zhang is accused of taking advantage of his various posts in the tobacco system to seek benefits for others, while illegally accepting significant amounts of money and gifts in return.

    The case has been filed by the People’s Procuratorate of Ganzhou City, East China’s Jiangxi province, to the city’s intermediate people’s court.

  • 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.