Reported The Wall Street Journal, the number of Chinese smokers estimated at 350 millions exceeds the total population of the United States. The tobacco industry im China makes profit and brings modernity to China. Tobacco money has built highways, railroads and hydroelectric dams. It quoted the statement of Mr. Liu Ruisheng: "tobacco is a pillar of the economy."
Mr. Liu is deputy director of the Yunnan branch of Hongta Group's parent company, China National Tobacco Corp, the world;;s largest tobacco maker and a government-owned enterprise. In Yunnan Province, tobacco taxes contributed nearly half of government revenue. Even in Shanghai, it gets 10 percent of its tax revenue from cigarettes.
In 1996, Hongta was the largest tax payer. In 2006, it was one of the three largest tax-payers in China. Hongta produces eight billion packs a year. It has invested in other enterprises, such as hotels, real-estate, security trading, biotechnology, paper and cements.
But the profit costs tremendous human health. Shanghai Chest Hospital which specializes in respiratory diseases reports rising number of lung-cancer cases. According to the British Medical Journal last year, the direct and indirect cost of smoking from medical expenses to lost productivity was estimated at $5 billion in China during the year of 2000.
China ratified international tobacco-controlled treaty in 2006. It agreed to take steps to limit tobacco advertising, improving warning labels and to discourage smoking. (Source: Gordon Fairclough, The Wall Street Journal, Jan 3, 2006).