In the hilltop city of Yuxi in China’s Yunnan province, tourists gather around a bright red pagoda overlooking a vast cigarette factory that has become the heart of the region’s identity. Despite efforts by the Chinese government to reduce smoking rates, Yuxi remains deeply rooted in tobacco production, which plays a vital role in the local economy. As one of the largest tobacco-producing regions in China, Yuxi relies heavily on the industry, with tobacco contributing to nearly a third of the city’s GDP in the first quarter of the previous year. For local farmers, tobacco farming offers a stable and profitable livelihood. A farmer named Li explained how her family earns around 60,000 yuan annually from growing tobacco, an amount that far surpasses what other crops yield in the region.
The local cigarette brand, Hongtashan, owned by the China National Tobacco Corporation, has made Yuxi a destination for curious tourists. The brand, named after the iconic red pagoda, offers factory tours, a museum, and even a cultural park dedicated to tobacco. Tourists from across the country visit to witness the legacy of a brand that has defined local life for decades. One visitor, surnamed Dong, expressed admiration for the brand’s perceived quality compared to foreign cigarettes, though he acknowledged smoking is becoming less popular with younger generations.
China remains the largest producer and consumer of tobacco globally, with over 300 million smokers. Despite public health campaigns and a national goal to reduce the smoking rate from 25% to 20% by 2030, progress has been slow. Enforcement of smoking bans is weak, and tobacco use remains prevalent in public spaces. Complicating efforts to reduce smoking is the China National Tobacco Corporation, which operates as both the industry’s primary producer and its regulator through the State Tobacco Monopoly Administration—a situation criticized for posing a major conflict of interest. The sector generated a record 1.6 trillion yuan in taxes and profits last year, making it difficult for policymakers to pursue aggressive tobacco control.
Yet studies indicate the cost of smoking outweighs its economic benefits. The annual economic burden of smoking in China was estimated at 2.43 trillion yuan in 2020, 1.6 times greater than the industry’s contribution. While some farmers still see tobacco as a secure income source, public health experts advocate for stronger regulations to balance economic interests with health concerns.
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