China inclined to ban cigarette advertising, promotion

Emerging Markets Economy, Nov 17, 2003

China will ban all cigarette advertising, promotion and sponsorship in the middle of 2004 if a global agreement on tobacco control is passed by China's top legislative body early in 2004. The move may hurt the cigarette industry.

Wang Guangya, China's permanent representative to the United Nations, signed the Framework Convention on Tobacco Control last week in New York, making China the 77th member country to control tobacco.

The framework, which aims at protecting public health and reducing tobacco consumption, stipulates that each tobacco product sold in the member countries should contain warning messages over half of the packaging area of the packet. It also urges governments to raise the price and tax rate on tobacco products.

China's 350-million smoking population comprises one-third of the world's smokers. The tobacco industry generated 130 billion yuan (US$15.7 billion) profits and tax in the first nine months of this year. It is expected to hit 160 billion yuan for this year, according to Zheng Fugang, secretary-general of the China Tobacco Society, quoted by The AP.

Last year, the industry contributed 10 percent of the country's total tax revenue.