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    Government Owns China’s Tobacco Industry

    suryaBy suryaAugust 1, 2010002 Mins Read

    China has about 350 million smokers. As a result, the nation’s tobacco industry is huge. In fact, the industry is more massive than the next six countries combined. And, it is wholly owned by the state, which earns enormous profits from tobacco.

    Tobacco Figures in China
    China makes about 2.3 trillion cigarettes a year, mostly for domestic consumption. About 57 percent of Chinese men are smokers, compared to about three percent of women. Sixty percent of professors and doctors smoke, often at work. The World Health Organization (WHO) reveals that tobacco accounts for a million Chinese deaths annually. This figure is expected to double by the year 2020. Lung cancer has increased 465 percent from 1980. It accounts for 25% of cancer deaths in China.

    Huge Tobacco Profits
    China National Tobacco, a state-owned company, made $76 billion in profit and taxes in 2009. Taxes accounted for $61 billion. The profit was $14.3 billion, far more than that of Philip Morris International, which is world’s biggest multinational tobacco maker. Philip Morris posted a profit of $6.3 billion in 2009.

    Tobacco Industry Pays Well
    In China, the government is in control of the tobacco industry. Therefore, the industry’s political clout influences health policy. The tobacco industry sponsors schools and has investments in securities, hotels and real estate. Not surprisingly, the tobacco industry pays well and its employees lead extravagant lifestyles.

    Tobacco Health Problems
    However, tobacco is a great health problem. Medical expenses incurred due to tobacco-linked diseases amount to $22.7 billion a year. China is party to the WHO’s treaty on tobacco control. But, due to the tobacco industry’s influence, the implementation of this treaty in China was assigned to the ministry that controls tobacco. This is a violation of the treaty. Critics say its is like assigning the task of guarding chickens to a fox. They want the health ministry to supervise tobacco control in China.

    Lackadaisical Tobacco Control
    According to the treaty, China has to ban smoking in public transport, hospitals and workplaces by January next year. But, the nation is not on course to meet the deadline. This would also be a violation. Thus, the tobacco scenario in China continues to be a tussle between the rich government-led tobacco lobby and health critics who want greater control on public tobacco use.

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