Berliner Boersenzeitung - Tobacco town thrives as China struggles to kick the habit

EUR -
AED 4.324252
AFN 78.159677
ALL 96.383136
AMD 449.157247
ANG 2.108142
AOA 1079.738021
ARS 1707.873732
AUD 1.756
AWG 2.119737
AZN 2.003926
BAM 1.953035
BBD 2.371842
BDT 143.906265
BGN 1.955186
BHD 0.444171
BIF 3482.669406
BMD 1.177468
BND 1.511959
BOB 8.155419
BRL 6.501384
BSD 1.177633
BTN 105.803209
BWP 15.480018
BYN 3.437334
BYR 23078.372761
BZD 2.368437
CAD 1.610311
CDF 2590.429371
CHF 0.92851
CLF 0.027159
CLP 1065.41971
CNY 8.275838
CNH 8.252061
COP 4408.204691
CRC 588.167301
CUC 1.177468
CUP 31.202902
CVE 110.109113
CZK 24.255957
DJF 209.259952
DKK 7.469533
DOP 73.815496
DZD 152.411273
EGP 55.98684
ERN 17.66202
ETB 183.219828
FJD 2.671909
FKP 0.873155
GBP 0.872474
GEL 3.161508
GGP 0.873155
GHS 13.101396
GIP 0.873155
GMD 87.721605
GNF 10292.42848
GTQ 9.022227
GYD 246.370155
HKD 9.156244
HNL 31.041054
HRK 7.532851
HTG 154.191703
HUF 388.726936
IDR 19698.038759
ILS 3.75137
IMP 0.873155
INR 105.771538
IQD 1542.715898
IRR 49600.83927
ISK 147.977454
JEP 0.873155
JMD 187.84406
JOD 0.834796
JPY 183.703869
KES 151.834535
KGS 102.969232
KHR 4720.297188
KMF 492.181748
KPW 1059.742049
KRW 1700.7934
KWD 0.361707
KYD 0.981406
KZT 605.253112
LAK 25485.810205
LBP 105455.453486
LKR 364.543896
LRD 208.434024
LSL 19.599152
LTL 3.476757
LVL 0.712239
LYD 6.372977
MAD 10.744289
MDL 19.754948
MGA 5385.352811
MKD 61.56483
MMK 2472.481245
MNT 4186.07643
MOP 9.432805
MRU 46.632979
MUR 54.104543
MVR 18.191935
MWK 2042.000364
MXN 21.123411
MYR 4.762853
MZN 75.252081
NAD 19.599152
NGN 1707.858756
NIO 43.338643
NOK 11.782763
NPR 169.285334
NZD 2.018368
OMR 0.452732
PAB 1.177628
PEN 3.96269
PGK 5.0858
PHP 69.220398
PKR 329.880871
PLN 4.214723
PYG 7980.701311
QAR 4.292423
RON 5.09278
RSD 117.2358
RUB 93.019627
RWF 1715.16447
SAR 4.416323
SBD 9.600358
SCR 17.936864
SDG 708.268245
SEK 10.798895
SGD 1.512051
SHP 0.883406
SLE 28.347583
SLL 24690.919499
SOS 671.84598
SRD 45.138828
STD 24371.21026
STN 24.465363
SVC 10.304412
SYP 13019.121409
SZL 19.583275
THB 36.583876
TJS 10.822332
TMT 4.132913
TND 3.42605
TOP 2.835061
TRY 50.450032
TTD 8.010625
TWD 37.022303
TZS 2912.404704
UAH 49.679666
UGX 4250.981667
USD 1.177468
UYU 46.02484
UZS 14192.906373
VES 339.215384
VND 30990.957708
VUV 142.639113
WST 3.283512
XAF 655.026863
XAG 0.016365
XAU 0.000263
XCD 3.182165
XCG 2.122395
XDR 0.81366
XOF 655.029641
XPF 119.331742
YER 280.767066
ZAR 19.625449
ZMK 10598.623713
ZMW 26.58425
ZWL 379.144215
  • SCS

    0.0200

    16.14

    +0.12%

  • NGG

    0.2500

    77.49

    +0.32%

  • RELX

    -0.0400

    41.09

    -0.1%

  • RYCEF

    -0.0300

    15.53

    -0.19%

  • RIO

    -0.0800

    80.89

    -0.1%

  • CMSD

    0.1200

    23.14

    +0.52%

  • AZN

    0.3100

    92.45

    +0.34%

  • BTI

    0.2000

    57.24

    +0.35%

  • BCE

    0.2800

    23.01

    +1.22%

  • RBGPF

    0.0000

    81.26

    0%

  • CMSC

    0.0100

    23.02

    +0.04%

  • GSK

    0.1100

    48.96

    +0.22%

  • VOD

    0.0400

    13.1

    +0.31%

  • JRI

    0.0600

    13.47

    +0.45%

  • BCC

    1.4800

    74.71

    +1.98%

  • BP

    -0.2700

    34.31

    -0.79%

Tobacco town thrives as China struggles to kick the habit
Tobacco town thrives as China struggles to kick the habit / Photo: GREG BAKER - AFP

Tobacco town thrives as China struggles to kick the habit

Visitors mill around a bright red hilltop pagoda in southwestern China, gazing down at a sprawling cigarette factory whose deadly output has put an otherwise unremarkable city on the map.

Text size:

China is home to a third of the world's smokers and tobacco-related diseases are a major cause of death in the country -- a trend likely to worsen as its population rapidly ages.

Beijing hopes to dramatically reduce that by the end of the decade, but even the government machine is struggling to achieve that as it clashes with a powerful state tobacco monopoly and local economies reliant on the crop.

That contradiction smoulders in Yuxi, Yunnan province, whose nascent tourism businesses and local farmers thrive on its history of cigarette production.

A mostly agricultural area where incomes lag behind the national average, the city has firmly hitched its fortunes to tobacco, which accounted for almost a third of its gross domestic product in the first quarter of last year, according to official figures.

That income helps "pay for our children's schooling or to build a house", farmer Li told AFP as her husband ploughed furrows into a hilltop field.

She said her family can earn up to 60,000 yuan ($8,300) annually from the tobacco harvest, far exceeding other crops with more variable prices.

Tobacco also brings tourists to Yuxi -- local firm Hongta, or "red tower", is one of China's most prominent cigarette brands.

Named for a centuries-old pagoda painted scarlet after the country's communist takeover, it is owned by state-run monopoly the China National Tobacco Corporation and offers visitors factory tours, a museum and a tobacco-themed cultural park.

- Up in smoke -

"Yuxi's cigarettes are quite famous, so we've always wanted to come and have a look," said a tourist surnamed Dong from the northeastern city of Dalian.

Foreign cigarettes, he claimed, "don't put the same demand on quality".

China is the world's largest producer and consumer of tobacco and has more than 300 million smokers, according to the World Health Organization.

As trains pull into stations across China, passengers frequently jump off for a quick cigarette on the platform before continuing their journey.

Indoor smoking bans are loosely enforced and the stench of tobacco smoke is commonplace, from public toilets to taxis and late-night eateries.

Beijing says it aims to reduce the number of smokers from around a quarter of the population to a fifth by 2030.

Progress has been slow. The number of smokers fell just 14 percent between 2010 and 2022, well below the average for richer nations, a study by a Chinese think tank found last year.

Policymakers must also navigate the interests of China Tobacco, which controls virtually all of the domestic production, processing and distribution.

The company has a chokehold on a domestic tobacco sector that last year generated a record 1.6 trillion yuan ($220 billion) in taxes and profits.

The State Tobacco Monopoly Administration, responsible for industry oversight, has been criticised by researchers for being essentially the same organisation under a different name.

This means the country's largest cigarette manufacturer is its own regulator, in what has been decried by public health advocates as a clear conflict of interest and an impediment to effective tobacco controls.

The firm touts its contribution to the economy, but researchers into China's tobacco market argue that the revenue does not outweigh the health costs.

- Changing times -

A recent study found that the annual economic cost of cigarette smoking in China -- estimated at 2.43 trillion yuan in 2020 -- was approximately 1.6 times greater than the gains from the industry.

"Stronger tobacco control policies can reduce smoking prevalence without severely harming government revenue," Qinghua Nian at the Institute for Global Tobacco Control at Johns Hopkins Bloomberg School of Public Health told AFP.

Efforts to curb cigarette consumption at home have coincided with an overseas push from Hongta and other tobacco brands.

The country exported more than $9 billion in tobacco and tobacco products in 2023, up from less than $1.5 billion five years prior, according to the United Nations.

Beneath Yuxi's looming red pagoda, tourist Dong said smoking was slowly losing its appeal among younger generations.

"As society develops, some things are progressing and it's better to smoke less," he said.

"My children and grandchildren don't smoke at all."

But nearby, a worker surnamed Long watching over tobacco seedlings in a greenhouse at a plant nursery said the crop was still a good way to earn a living.

"Tobacco used to be a couple of yuan per pound, but now it's a couple of dozen yuan," the 54-year-old said.

"This critical industry is still a good source of income for farmers."

(A.Lehmann--BBZ)