
Tourists and tar in Yuxi, a town built on cigarettes in China's tobacco heartland
YUXI, May 8 — Visitors mill around a bright red hilltop pagoda in southwestern China, gazing down at a sprawling cigarette factory whose deadly output has put an otherwise unremarkable city on the map.
China is home to a third of the world's smokers and tobacco-related diseases are a major cause of death in the country — a trend likely to worsen as its population rapidly ages.
Beijing hopes to dramatically reduce that by the end of the decade, but even the government machine is struggling to achieve that as it clashes with a powerful state tobacco monopoly and local economies reliant on the crop.
That contradiction smoulders in Yuxi, Yunnan province, whose nascent tourism businesses and local farmers thrive on its history of cigarette production.
Farmers works in fields in a village where tobacco is commonly grown in Yuxi March 30, 2025. — AFP pic
A mostly agricultural area where incomes lag behind the national average, the city has firmly hitched its fortunes to tobacco, which accounted for almost a third of its gross domestic product in the first quarter of last year, according to official figures.
That income helps 'pay for our children's schooling or to build a house', farmer Li told AFP as her husband ploughed furrows into a hilltop field.
She said her family can earn up to 60,000 yuan (RM35,200) annually from the tobacco harvest, far exceeding other crops with more variable prices.
Tobacco also brings tourists to Yuxi — local firm Hongta, or 'red tower', is one of China's most prominent cigarette brands.
Named for a centuries-old pagoda painted scarlet after the country's communist takeover, it is owned by state-run monopoly the China National Tobacco Corporation and offers visitors factory tours, a museum and a tobacco-themed cultural park.
China is home to a third of the world's smokers and tobacco-related diseases are a major cause of death in the country — a trend likely to worsen as its population rapidly ages. Beijing hopes to dramatically reduce that by the end of the decade, but is struggling to kick the habit as it clashes with a powerful state tobacco monopoly and local economies reliant on the crop. — AFP pic
Up in smoke
'Yuxi's cigarettes are quite famous, so we've always wanted to come and have a look,' said a tourist surnamed Dong from the northeastern city of Dalian.
Foreign cigarettes, he claimed, 'don't put the same demand on quality'.
China is the world's largest producer and consumer of tobacco and has more than 300 million smokers, according to the World Health Organisation.
As trains pull into stations across China, passengers frequently jump off for a quick cigarette on the platform before continuing their journey.
Indoor smoking bans are loosely enforced and the stench of tobacco smoke is commonplace, from public toilets to taxis and late-night eateries.
Beijing says it aims to reduce the number of smokers from around a quarter of the population to a fifth by 2030.
People walks past a mural of farmers harvesting tobacco leaves, on a wall in Yuxi, southwest Yunnan province, March 31, 2025. — AFP pic
Progress has been slow. The number of smokers fell just 14 per cent between 2010 and 2022, well below the average for richer nations, a study by a Chinese think tank found last year.
Policymakers must also navigate the interests of China Tobacco, which controls virtually all of the domestic production, processing and distribution.
The company has a chokehold on a domestic tobacco sector that last year generated a record 1.6 trillion yuan in taxes and profits.
The State Tobacco Monopoly Administration, responsible for industry oversight, has been criticised by researchers for being essentially the same organisation under a different name.
This means the country's largest cigarette manufacturer is its own regulator, in what has been decried by public health advocates as a clear conflict of interest and an impediment to effective tobacco controls.
The firm touts its contribution to the economy, but researchers into China's tobacco market argue that the revenue does not outweigh the health costs.
Changing times
A recent study found that the annual economic cost of cigarette smoking in China — estimated at 2.43 trillion yuan in 2020 — was approximately 1.6 times greater than the gains from the industry.
'Stronger tobacco control policies can reduce smoking prevalence without severely harming government revenue,' Qinghua Nian at the Institute for Global Tobacco Control at Johns Hopkins Bloomberg School of Public Health told AFP.
Efforts to curb cigarette consumption at home have coincided with an overseas push from Hongta and other tobacco brands.
The country exported more than US$9 billion in tobacco and tobacco products in 2023, up from less than US$1.5 billion five years prior, according to the United Nations.
Beneath Yuxi's looming red pagoda, tourist Dong said smoking was slowly losing its appeal among younger generations.
A farmer rests beside trays used for growing tobacco seedlings in a village in Yuxi March 30, 2025. — AFP pic
'As society develops, some things are progressing and it's better to smoke less,' he said.
'My children and grandchildren don't smoke at all.'
But nearby, a worker surnamed Long watching over tobacco seedlings in a greenhouse at a plant nursery said the crop was still a good way to earn a living.
'Tobacco used to be a couple of yuan per pound, but now it's a couple of dozen yuan,' the 54-year-old said.
'This critical industry is still a good source of income for farmers.' — AFP

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New Straits Times
3 hours ago
- New Straits Times
US-China trade talks to resume in seven days: White House
WASHINGTON: Trade negotiations between US and Chinese officials are expected to resume within seven days, following a phone call between President Donald Trump and President Xi Jinping. The discussions will place particular emphasis on rare earth minerals, White House Trade Adviser Peter Navarro confirmed on Friday. "We expect that a meeting will take place within seven days," Navarro told reporters at the White House, commenting on the timeline of the next round of trade talks. Navarro stated that Trump has been clear that "the rare earth issue will be key to that negotiation", as reported by Sputnik/RIA Novosti. The US delegation will include Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Secretary of Commerce Howard Lutnick, according to Navarro. The advisor also mentioned that Thursday's call between Trump and Xi lasted approximately 90 minutes, during which both leaders demonstrated "a very clear understanding" of the expected outcomes of the upcoming discussions. Trump later shared on Truth Social that he had discussed "some of the intricacies" of the US-China trade deal with President Xi. He also announced that he had accepted Xi's invitation to visit China and extended a reciprocal invitation. Following high-level trade and economic talks in Geneva earlier in May, Washington and Beijing agreed to lower reciprocal tariffs by 115 percentage points each for 90 days. The US has reduced tariffs on Chinese goods from 145 per cent to 30 per cent, while China has cut tariffs on American imports from 125 per cent to 10 per cent. Later that month, Trump accused China of "totally violating" the Geneva agreement and remarked that "it is extremely hard" to reach a deal with Beijing.–BERNAMA


New Straits Times
3 hours ago
- New Straits Times
US, China officials clash at Shanghai business event
SHANGHAI: US and Chinese officials traded barbs at a celebration held by a US business chamber in Shanghai on Friday, as the chamber appealed to both countries to provide more certainty to American businesses operating in China. Scott Walker, consul general of US consulate in Shanghai, told a gathering of US businesses aimed at celebrating the 110th anniversary of the American Chamber of Commerce (AmCham) in Shanghai that the US-China economic relationship had been unbalanced and non-reciprocal "for far too long." "We want an end to discriminatory actions and retaliation against US companies in China," he said. In a speech that directly followed Walker's, Chen Jing, a Shanghai Communist Party official who is also the president of the Shanghai People's Association for Friendship with Foreign Countries, countered Walker's view. "I believe the consul general's view is prejudiced, ungrounded and not aligning with the phone call of our heads of states last night," he said. The interaction reflects the continued strained relationship between both countries as the trade war continues to simmer. US President Donald Trump and Chinese leader Xi Jinping spoke over a long anticipated call on Thursday, confronting weeks of brewing trade tensions and a battle over critical minerals. Trump later said they agreed to further talks. It came in the middle of a dispute between Washington and Beijing in recent weeks over "rare earths" minerals that threatened to tear up a fragile truce in the trade war between the two biggest economies. The countries struck a 90-day deal on May 12 to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration but the deal has not addressed broader concerns that strain the relationship and Trump has accused China of violating the agreement. Eric Zheng, president of AmCham Shanghai which counts over 1,000 companies among its membership, told reporters on the sidelines of the event that many companies had put their decision-making on pause due to the uncertainty. "People are looking for some more definitive, durable statements on both sides that enable businesses to feel more secure," he said.


Free Malaysia Today
6 hours ago
- Free Malaysia Today
HSBC chair Tucker to return to Asia insurer AIA after overseeing bank overhaul
Mark Tucker served as AIA's chief executive and president between 2010 and 2017. (EPA Images pic) HONG KONG : HSBC Holdings' high-profile chairman Mark Tucker will return to the insurance sector as chair of Hong Kong-based AIA Group, after having presided over top management changes and navigated Sino-US tensions at the Asia-focused lender. Tucker will depart HSBC by Sept 30 and will step into the role of AIA chairman on Oct 1, the two companies said in separate statements today. Tucker served as AIA chief executive and president between 2010 and 2017. Brendan Nelson, a former KPMG partner and board member who is the chair of HSBC's group audit committee, would become interim chairman from Oct 1, as the bank continues with its search for a permanent replacement, it said. Tucker's departure from HSBC, which generates the bulk of its revenues and profits in Asia, will cap an eventful eight-year tenure at the lender, during which he oversaw a sweeping restructuring and shrinking of the bank. Under Tucker's stewardship, HSBC has had to deal with a constant drumbeat of geopolitical tensions, as Britain, together with the US, clashed with China, where the bank has its second home and major profit engine in the financial hub of Hong Kong. Those experiences, as well as his deep Asia and insurance sector expertise, will stand him in good stead in the new role at AIA, as the pan-Asian insurer looks to bolster market share in the key markets of mainland China and Hong Kong. Tucker will replace Edmund Sze-Wing Tse as AIA's chairman. Shares in AIA were up 1.8%, while Hong Kong shares of HSBC were down 0.3%. Hong Kong's benchmark index was off 0.2%. Besides mainland China and Hong Kong, AIA's 18 markets in Asia include Thailand, Singapore, Malaysia, Australia, Indonesia, New Zealand, the Philippines and South Korea. It also has a joint venture in India. A one-time professional soccer player, Tucker, who took AIA public shortly after his appointment in 2010, has previously held several leadership jobs in the insurance sector, including at Britain's Prudential. Asia pivot Tucker's departure from HSBC was not a surprise. He was nearing the end of the nine-year maximum advised for chair roles under Britain's corporate governance code, and the bank announced on May 1 that he would step down before the end of the year. Since joining HSBC in 2017, becoming the bank's first-ever externally recruited chairman, British-born Tucker worked with four different CEOs, and he was involved in the selection of three of them. Tucker was seen by investors, analysts and insiders as a key person at the bank to help it navigate geopolitical tensions and expand its business in China as part of its Asia pivot to boost growth. Geopolitical tensions came to a head for HSBC in May 2023 when its then-biggest shareholder, Ping An Insurance of China, lobbied for the bank to spin off its Asian business, a proposal ultimately defeated at HSBC's annual shareholder meeting. HSBC's senior independent director Ann Godbehere said the selection process to appoint a permanent chairman was underway. Tucker will serve as a strategic adviser to CEO Georges Elhedery and the board while the recruitment search remains in place. 'Brendan's extensive experience on UK-listed boards, and as group audit chair, makes him ideally placed to assume the role on an interim basis while the process continues,' Godbehere said of Nelson. He previously served as an independent non-executive director at several major UK-listed companies, including oil giant BP and financial services firm NatWest. HSBC is expected to search for Tucker's successor from its current board, sources familiar with the bank's plans told Reuters. 'Among the leading candidates is former Citigroup president Jamie Forese,' the sources said.