China richens selling cigarettes

The China National Tobacco Corp., which produces cigarettes for China's 300 million smokers, is undoubtedly the biggest cigarette manufacturer across the globe. In 2013 the company produced about 2.5 trillion smokes. Its next greatest rival, Philip Morris International, manufactured 880 billion.

Cigarettes Bulk

Regarding market share, China National is bigger than its next five rivals joined together; its increasing sales have represented a net boost in global manufacturing, even as volume at its rivals has dropped. While Marlboro continues to be the most popular cigarette on the globe, China National offers 7 of the best-selling 10 brands.

Of the top 10 global brands, 7 are China National Tobacco's:

Marlboro – Philip Morris International
Red Pagoda – China National Tobacco
BaiSha – China National Tobacco
Winston – Japan Tobacco
Marlboro – Altria Group (U.S. only)
Double Happiness – China National Tobacco
Yunyan – China National Tobacco
Red Dragon – China National Tobacco
Huangguoshu – China National Tobacco
Huangshan – China National Tobacco

China National owns over 160 cigarette brands, produced in around 100 factories throughout the nation, and uses its revenue to invest in banks, high class hotels, and a hydroelectric plant.

The majority of its money flows to its proprietor, the Chinese government; the tobacco industry represent about 7% of the state's earnings annually, and China National deals with as much as 98% of the market.

The government leads China National as a mainly vague monopoly. The company has effectively blocked rivalry from Western tobacco manufacturers by restricting imports or domestic manufacturing by foreign makers. In the past 10 years, as smoking has ebbed in other parts of the world, China National has been on a significant split, creating successful cigarette brands. It produced about $170 billion in income in 2012, more than Apple.

China National has mastered from America. In 1997, Philip Morris cooperated with China's tobacco regulator to reduce the influence of global antismoking attempts, and China National is continually borrowing from the Big Tobacco strategies. It's dealing with worries about smoking by advertising low-tar cigarettes as less dangerous. The U.S. banned the selling of low-tar cigarettes in 2010, and the practice is forbidden by the WHO tobacco treaty. That's because medical specialists established that smokers of low-tar brands lead to smoking more cigarettes or breathing in more deeply. In China, sales of low-tar brands, which the price of which is as much as three times the high-tar cigarettes, have raised by more than 3,000% since 2008.