{"id":20847,"date":"2022-10-27T07:48:44","date_gmt":"2022-10-27T05:48:44","guid":{"rendered":"https:\/\/www.generationsanstabac.org\/actualites\/cntc-chine\/"},"modified":"2022-10-27T07:48:44","modified_gmt":"2022-10-27T05:48:44","slug":"cntc-chine","status":"publish","type":"actualites","link":"https:\/\/www.generationsanstabac.org\/en\/actualites\/cntc-chine\/","title":{"rendered":"China, attacking the global tobacco market"},"content":{"rendered":"<p style=\"text-align: justify;\"><em>Yet little known, the <a href=\"https:\/\/www.generationsanstabac.org\/en\/article\/china-tobacco-nouveau-geant-tabac\/\">China National Tobacco Corporation<\/a> (CNTC) is the world&#039;s largest tobacco producer and is controlled by the Chinese state. In 2021, CNTC tobacco accounted for more than 46,% of global production, far ahead of Philip Morris International (PMI) or British American Tobacco (BAT). The lack of awareness of this tobacco giant is due in particular to the fact that CNTC&#039;s activities are overwhelmingly concentrated in the Chinese domestic market: in fact, only 1,% of tobacco produced in China is sold abroad.<\/em><\/p>\n<h2 style=\"text-align: justify;\"><strong>A state monopoly in contradiction with public health imperatives in China<br \/>\n<\/strong><\/h2>\n<p style=\"text-align: justify;\">Founded in 1982 following the centralization of many local tobacco companies, CNTC manages hundreds of tobacco producers, suppliers and growing companies in China and around the world. CNTC is regulated by the State Tobacco Monopoly Administration (STMA), a government agency heavily involved in setting China\u2019s tobacco control policy and in CNTC\u2019s strategic decision-making. This arrangement of the regulatory agency over the government tobacco company creates an inherent conflict between a strong tobacco control policy designed to reduce tobacco consumption in the country and the commercial interests derived from growing tobacco sales.<\/p>\n<h2 style=\"text-align: justify;\"><strong>Agreements with major global tobacco players <\/strong><\/h2>\n<p style=\"text-align: justify;\">Since the 1980s, the CNTC, despite its strong local roots, has sought to turn towards the global market, in line with China&#039;s national export strategy. To do this, the Chinese giant has multiplied agreements with the main tobacco multinationals, such as Philip Morris International (1994), RJ Reynolds (1997), Japan Tobacco International (2003), and BAT in 2013. These agreements can take the form of sharing technological knowledge, creating joint ventures, or reciprocal market openings from one manufacturer to another.<\/p>\n<h2 style=\"text-align: justify;\"><strong>Launch of an international hub in Hong Kong<\/strong><\/h2>\n<p style=\"text-align: justify;\">In 2019, CNTC filed for an IPO in Hong Kong to raise over US$100 million for China Tobacco International Inc. (CTI), one of its overseas companies.<br \/>\nThe CTI Hong Kong has been entrusted with four main responsibilities:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Export of tobacco leaves in collaboration with CTI Brazil, CTI Argentina and CTI North America;<\/li>\n<li>Export of tobacco leaves to Southeast Asia;<\/li>\n<li>Export of manufactured cigarettes to Southeast Asia;<\/li>\n<li>Selling new products.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Developing a presence across the global supply chain <\/strong><\/h2>\n<p style=\"text-align: justify;\">In addition to its expansion through joint ventures, CNTC has strengthened its international presence by creating subsidiaries to gain access to different parts of the chain<br \/>\nglobal tobacco supply chain. In doing so, the company often works closely with governments to secure favorable conditions for the establishment of various businesses.<\/p>\n<p style=\"text-align: justify;\">The CNTC relies on a network of international agricultural subsidiaries to support the production of tobacco products for the domestic market and international distribution. In 2020, China exported more than US$486 billion worth of tobacco leaves and US$163 billion worth of manufactured cigarettes. China also imports nearly 100 million kilograms of unmanufactured tobacco each year, particularly from Argentina, Brazil, Kazakhstan, Malawi, Zimbabwe and Zambia.<\/p>\n<p style=\"text-align: justify;\">In addition, CNTC has set up subsidiaries responsible for cigarette production in Southeast Asia, such as Cambodia and Myanmar, in Latin America (Argentina), but also in Europe: One of CNTC&#039;s main subsidiaries is China Tobacco International Europe Company (CTIEC), which operates from Romania and ensures CNTC&#039;s presence in Europe. CTIEC&#039;s operations, supported by a $40 million investment from the Chinese government, target markets in Eastern Europe, Southeast Asia, the Middle East and Africa.<\/p>\n<h2 style=\"text-align: justify;\"><strong>China&#039;s alleged involvement in global illicit trade <\/strong><\/h2>\n<p style=\"text-align: justify;\">Globally, the CNTC has been accused of engaging in illicit trade activities such as smuggling and counterfeiting, in order to further its expansion into new markets.<\/p>\n<p style=\"text-align: justify;\">For example, CTIEC exported cigarettes from its manufacturing base in Romania to several European countries, including Ukraine, as early as 2013. The illicit products seized in other European countries were found to have originated in Ukraine, from companies supplied by CTIEC. The cigarettes produced by CTIEC were sold to an Iraqi company, Devmak, before being allegedly smuggled into Italy, with CTIEC\u2019s approval. The smugglers were found to have links to organized crime and are also suspected of being active in Moldova and Montenegro.<\/p>\n<p><strong><a href=\"https:\/\/www.generationsanstabac.org\/en\/\">\u00a9Generation Without Tobacco<\/a><\/strong><\/p>\n<p style=\"text-align: right;\"><strong><em>FT<\/em><\/strong><\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><em>This document contains the main elements of the report of the <strong>Stopping Tobacco Organizations and Products (STOP): <\/strong><a href=\"https:\/\/exposetobacco.org\/wp-content\/uploads\/CNTC_Brief_FR.pdf\">China National Tobacco Corporation&#039;s Global Expansion<\/a><\/em><\/p>\n<p><span style=\"color: #999999;\"><strong><a style=\"color: #999999;\" href=\"http:\/\/www.cnct.fr\/\" target=\"_blank\" rel=\"noopener noreferrer\">National Committee Against Smoking |<\/a><\/strong><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Yet little known, the China National Tobacco Corporation (CNTC) is the world&#039;s largest tobacco producer and is controlled by the Chinese state. In 2021, CNTC tobacco accounted for more than 46 billion pounds of global production, far ahead of Philip Morris International (PMI) or British American Tobacco (BAT). The lack of awareness of this tobacco giant is due in part to the fact that CNTC&#039;s activities are overwhelmingly concentrated in the Chinese domestic market: in fact, only 1 billion pounds of tobacco produced in China is sold abroad.<\/p>","protected":false},"featured_media":11253,"template":"","tags":[],"thematique":[538],"class_list":["post-20847","actualites","type-actualites","status-publish","has-post-thumbnail","hentry","thematique-marches-paralleles"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/actualites\/20847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/actualites"}],"about":[{"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/types\/actualites"}],"version-history":[{"count":0,"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/actualites\/20847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/media\/11253"}],"wp:attachment":[{"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/media?parent=20847"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/tags?post=20847"},{"taxonomy":"thematique","embeddable":true,"href":"https:\/\/www.generationsanstabac.org\/en\/wp-json\/wp\/v2\/thematique?post=20847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}