China is both the world’s largest cigarette producer and consumer. Some analysts believe reducing cigarette consumption in China is difficult because local economies depend on tobacco sales.
Recent estimates show the tobacco industry contibutes more than 800 million yuan to China’s economy each day. The industry provides 500,000 jobs and keeps 3.6 million tobacco farmers in business, as well as 4 million retailers. In southern China’s Yunnan, Hunan, and Guizhou Provinces, tobacco is the biggest financial pillar. The industry provides up to almost half of the provincial tax revenue. In some cities the proportion of revenue from the tobacco industry is even as high as 70 percent.