This data exclude overseas production which has also risen sharply since 2008, reaching 1.57 million cases in 2014 (Qing, 2015). The development of new brands, to appeal to a wider global market beyond Chinese diasporas, is likely to increase via JVs with existing TTCs. The restructuring of the industry from the mid-1990s saw the closure of several export arms of provincial companies (STMA, 1998b). By comparison, Philip Morris International, its … Consider these numbers: In 2013, the China National Tobacco Corporation (CNTC) manufactured 2.5 trillion cigarettes. Joint brands include Win and Xingxin, developed by Hongyun Honghe Group and Myanmar’s Fu Xing Brothers Group (Lei, 2013), and Zhongnanhai (Totem) developed by Shanghai Tobacco and the Chinese-Mongolian JV (CTI, 2014a). The corporation was dismantled in the wake of the Cultural Revolution in 1966 (STMA, 1997) and the industry reverted to its former fragmented structure. (IBIS World, n.d.). Overall, restructuring of the Chinese tobacco industry since the early 2000s has been seen by industry sources as a key strategy for CNTC to become globally competitive. 3099067 The China National Tobacco Corporation (CNTC), which produces one-third of the world’s cigarettes, is the largest tobacco company in the world. Further reforms under discussion include reduced political involvement from the commercial side of the industry, as opposed to its regulation and administration, and even privatisation (Liu, 2014; Wang, 2015). The overall vision of provincial reforms has been to establish a three-tiered system, with municipal factories becoming subsidiaries (with legal authority) or branches (without legal authority) of provincial industrial companies, and the latter acting as CNTC subsidiaries (Liu, 2006). We also searched other English-language business news sources, notably Euromonitor, Tobacco Journal International and Tobacco Reporter. This paper examines the global business strategy of the CNTC as a global public health challenge. In 2012, luxury brands sold over 2 million cases and enjoyed a 20% increase from the previous year (Anon, 2013a). The Company produces cigarettes, flue cured tobacco, and other products. To triangulate Chinese source data, we searched Google and Baidu for news on the globalisation ambitions of the Chinese industry. In 2004, STMA announced plans to limit mid- and higher-priced brands to one hundred within three years (STMA, 2004). China National Tobacco Corporation is the largest tobacco producer in the entire world owned by the Chinese government (Young, 2006). This work is supported by the National Cancer Institute, US National Institutes of Health [grant number R01-CA091021]. The Great Leap Forward (1958–1960) and ensuing famine (1959–1961) slowed production to 5.1% annually (Benedict, 2011). Foreign operations have been established to secure tobacco leaf from Brazil, USA and Zimbabwe. These were previously searched to understand market access strategy by TTCs into China (Holden, Lee, Gilmore, Fooks, & Wander, 2010; Lee et al., 2004; Lee & Collin, 2006; Zhong & Yano, 2007). To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. In 1993 PMI signed licensing agreements for Marlboro (Shanghai Cigarette Factory) and other brands (Lai, 2009; PMI, 1993). Over the past 60 years, the CNTC has been focused on supplying a huge domestic market. There has been substantial consolidation, to transform a highly fragmented and inefficient industry, into fewer, larger and more competitive firms with clearer geographical (national, provincial and municipal), functional (manufacturing, sales and administration) and regulatory (central and provincial STMAs) delineation. ( Xu & he, 2003 ) Compiled from UN Comtrade database ( 2015 ) ( Yu, 2015.! 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