Ancient Mysteries - The World's Deadliest Company

Episode Date: June 7, 2026

What if a single company caused more suffering than any criminal organization in history?This video explores the rise of a corporation whose actions reshaped nations, influenced governments, and left ...a devastating impact on millions of lives. Through war, exploitation, and political influence, its legacy remains deeply controversial.Some of history's deadliest battles were fought for profit.💰 How much power can one company truly have?

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Starting point is 00:01:02 2.4 million people every single year, more than any war, more than any pandemic of the last few decades. Not a cartel, not a terrorist group. A perfectly legal business with a boring website, and here's the kicker. It's not on the Fortune 500, but it pulls in more money for its government than Saudi Arabia makes from oil. This is a legal monopoly, a state-run drug dealer, and the regulator policing itself, all rolled into one. Imagine your meth dealer being your doctor and the cop trying to arrest him. That's the energy. By the end, you'll see how one company turned an entire nation into lifelong customers and how their deaths directly bankroll an army. The final number we're working toward?
Starting point is 00:01:39 68 million dead in 33 years? Smash that like button and drop a comment. What city are you watching from? Let's roll. Picture this. You're walking through a Beijing subway station at rush hour. Roughly one in five of the men you pass has a cigarette tucked behind his ear, in his pocket, or already lit between his fingers.
Starting point is 00:01:58 Multiply that out across the country, and you get north of 300, million smokers. That's not a typo. That's almost the entire population of the United States, lighting up several times a day, every single day, forever. China burns through about 2.4 trillion cigarettes a year, which sounds like a made-up number, until you realize that if you stacked them end to end, the tower would reach the sun, not the moon, the sun. Light takes eight minutes to travel that distance, and apparently so does the average smoke break in Shenzhen. To put it in even sharper focus. China is one-fifth of the planet's population and smokes almost half of the world's cigarettes. The math is grim. Per capita, per square mile, per anything you want to measure, this is the
Starting point is 00:02:43 densest concentration of nicotine on Earth, and unlike most countries where smoking is slowly being shamed out of public life, in China it's still woven into the fabric of daily existence in ways that would make a 1950s American ad executive weep with joy. Smoking sections in restaurants? Adorable. entire restaurants. Office buildings where the bathroom doubles as a lounge. Hospital corridors where doctors in white coats stand right under a no-smoking sign, ashing into a styrofoam cup. The sign is decorative. The cup is functional. Welcome to the system. Here's where it gets culturally weird for outsiders. In China, a cigarette is not just a cigarette. It's a handshake. It's a business card. It's a love
Starting point is 00:03:26 language. At weddings, the groom hands out cigarettes to every male guest as a thank you for showing up. Forget chocolate-covered almonds in a little tool bag. This is the real party favour. Visiting someone's home? You bring a carton. Closing a business deal? You exchange premium brands the way diplomats exchange medals. Traveling to another province, you're expected to come back with the local specialty smoke, like a souvenir snow globe except it gives you lung cancer. Refusing an offered cigarette is not a polite, no thank you. It's a small social earthquake. It signals that you think you're better than the guy offering, or that you don't trust him, or that you're a foreigner who doesn't understand how things work, which honestly might be true. And the people doing the offering include
Starting point is 00:04:08 the very last group you'd expect. Doctors. About half of male Chinese physicians smoke, and many of them light up in the hospital, sometimes mid-consultation. Imagine going to a cardiologist who pauses your echo-cardiogram to take a drag. That's not a comedy sketch, that's a Tuesday. Government officials, forget about it. Watch any footage of a provincial meeting and you'll see ashtrays on the conference table next to the bottled water and the little name placards. Teachers, police officers, even some paedricians have been photographed smoking in the workplace. The cultural assumption is so deep that the warning labels barely whisper. We'll get to those labels later, and trust me, they're hilarious in a deeply depressing way.
Starting point is 00:04:50 For now, just hold this image in your head. A nation of 1.4 billion people where lighting up is not a vice. It's a handshake. That's the patient. Now let's meet the disease. Roll the clock back about 400 years and you'll find that the Chinese were not in fact born clutching a Zhongnanhai. Tobacco didn't even exist in Asia until the 17th century, when Portuguese traders sailed into the southern ports with their cargo holds full of dried leaves from the American. They were trying to sell silk, spices and salvation, and somewhere between the saints and the
Starting point is 00:05:22 silver they slipped tobacco onto the menu. The reaction was instant. Within a generation, smoking had crawled up the social ladder from sailors and dock workers to scholars, soldiers and eventually the imperial court itself. The Ming Dynasty was on its last legs. The Manchus were sweeping in, and somehow, in the middle of a violent regime change, everyone found time to develop a habit. The New Qing emperors did not love this. The Chongzhen emperor in the late Ming had already tried to ban tobacco, worried that soldiers smoking on the front lines were a fire hazard and a moral one. The early Qing rulers doubled down.
Starting point is 00:05:58 We're talking imperial decrees with consequences that would make the DEA blush. Caught smoking, decapitation was on the table, selling tobacco, also decapitation. The penalty for repeat offenders was, you guessed it, more decapitation, but with extra paperwork. And yet, somehow, against all evolutionary logic, people kept lighting up. Court records describe officials being executed for the habit, while their colleagues kept right on puffing away in their gardens. It turns out that the threat of losing your head is a surprisingly weak deterrent against a substance literally engineered by chemistry to make you crave it.
Starting point is 00:06:35 Who knew? After roughly a century of failed prohibition and a lot of severed heads, the Chink Court finally did what every government eventually does when it can't beat a vice. It joined the vice. The strategy shifted from extermination to monopoly. The state tried to control tobacco production and distribution directly, cutting out private merchants and pocketing the profits. When that proved too complicated to enforce across an empire the size of a continent, they pivoted again to Plan C, just taxed the daylights out of it. Tobacco became a steady, reliable, almost embarrassingly profitable stream of revenue for the imperial treasury. Walls don't build themselves
Starting point is 00:07:12 and neither do palaces, and apparently a population that won't stop smoking is the most renewable resource on Earth. So a model was born, centuries before Mao or markets or any of the modern players will meet later. The Chinese state and Chinese tobacco became business partners, not enemies, not strangers, partners. And that partnership has never, not once in 400 years, been seriously dissolved. Meanwhile, on the other side of the planet, the story was about to get a turbo boost from one ambitious American with terrible vision and excellent business instincts. His name was James Buchanan Duke, and in 1880 he was a tobacco farmer's son in Durham, North Carolina, with a small operation and a big problem. Hand-rolled cigarettes were slow. A skilled worker could
Starting point is 00:07:59 produce maybe four cigarettes a minute, which is fine if your goal is to supply a poker night, less fine if your goal is to conquer the world. Then, in 1881, a young inventor named James Games Bonsack patented a machine that changed everything. The Bonsack's cigarette rolling machine could spit out 210 cigarettes a minute. In Toronto, every arrival is a statement, and nothing says it better than this. Cadillac Optic was the number one selling luxury EV in Canada for 2025. Find your rhythm across a seamless 33-inch display and an immersive 19-speaker AKG surround audio system.
Starting point is 00:08:33 This city demands agility, and Optic delivers with precision to make every drive extraordinary. Let's take the Cadillac. Find out more at Cadillac Canada.ca. Luxury sales claim based on S&P Global Mobility, Canadian New Vehicle Total Registrations for calendar year 2025 for the Cadillac definition of luxury. Other tobacco men looked at it and shrugged. Duke looked at it and basically signed a deal in his own blood. He locked in an exclusive contract and then, according to the family legend, walked over to his desk and said, Bring me the Atlas.
Starting point is 00:09:03 He flipped through the pages of the world like a guy ordering off a menu. Europe, saturated, Africa, too fragmented, India, under British control. Then he landed on China. Population at the time, roughly 430 million people, the largest concentrated market on the planet. Duke pointed at it and said, this is where we're going to sell cigarettes. Someone in the room, almost certainly someone with actual knowledge of Asia, pointed out a small detail. The Chinese did not smoke cigarettes. They smoked pipes. They chewed tobacco. They used tobacco in a dozen ways, but the little white paper tube was a foreign curiosity. Duke's response, again according to legend, was four words. They will learn how.
Starting point is 00:09:50 That sentence is one of the most arrogant and one of the most accurate predictions in modern commercial history. What happened next was a masterclass in aggressive marketing decades before anyone called it that. Duke's company, eventually rebranded as British American tobacco after a merger, descended on China like a sales force from another dimension. They printed posters with glamorous women lighting up. They handed out free samples on street corners. They put cigarette ads on calendars, which were hung in every shop and home
Starting point is 00:10:20 because calendars were genuinely useful objects. They translated brand names into elegant Chinese characters and bribed local officials to clear the way. They built distribution networks that reached deep into rural provinces where most Western firms wouldn't bother going. Within a couple of decades, more than 20 independent Chinese tobacco producers had been swallowed, crushed or outmaneuvered. British American tobacco controlled the market so completely that for the first half of the 20th century,
Starting point is 00:10:49 the company was effectively the second largest taxpayer in China after the salt monopoly, and by some measures, the largest foreign business in the entire country. The strategy was deliberately engineered to hook the working class first, free samples to rickshaw pullers, dock workers, farmers. By the time the free supply stopped and the price tag appeared, the habit was already locked in. And here's the dark punchline. Duke was right. They did learn how. A population that had never smoked cigarettes became, over a single lifetime, a population that could not imagine life without them.
Starting point is 00:11:25 The cultural code we just described, the weddings, the gifts, the hospitality rituals, none of that existed before the Western cigarette arrived. It was manufactured, engineered, marketed into existence by a man in North Carolina with an Atlas, a machine, an absolutely zero hesitation about what his product would do to the people who used it. By the time the foreign tobacco men finally got kicked out of China in the 1940s, the addiction was no longer foreign. It was domestic.
Starting point is 00:11:54 It was patriotic. It belonged to the Chinese people now, whether they wanted it or not. and waiting in the wings to take over the Empire Duke had built was a chain-smoking revolutionary who would soon make the country his own and the cigarettes along with it. The man who had inherit Duke's accidental empire was already practising his grip on a cigarette
Starting point is 00:12:13 by the time he was a teenager. Mao Zedong started smoking young and never really stopped. For most of his early revolutionary career, his brand of choice was a British import called State Express 555, which is hilarious when you think about it. Here's the future architect of Chinese communism, marching across mountains, organizing peasant uprisings, denouncing Western imperialism in fiery speeches, and unwinding at the end of the day with a foreign luxury cigarette in a fancy tin. The contradictions were apparently invisible
Starting point is 00:12:45 to him. Or, more likely, perfectly visible and totally fine, because nicotine has a way of softening one's commitment to ideological purity. Later in life, once it became politically awkward to keep funding the British, Mao switched to a domestic brand whose pack featured the gate of the forbidden city. It was patriotic, it was symbolic, and it still killed you. His personal physician, a man named Li Jisui, who would later write a tell-all memoir that the Chinese government very much did not want published, repeatedly begged him to quit. Mao's response is the stuff of legend. He waved off the doctor with the line that smoking was, quote, a form of breathing exercise, just deep, leafy carcinogenic breathing exercise. He apparently believed this with the same confidence he brought
Starting point is 00:13:33 to his other questionable health opinions, like brushing teeth being a Western affectation, or showering being overrated. The man was many things, but a wellness influencer he was not. When the revolution came to a boil in the late 1940s, Mao understood something the nationalist did not. An army marches on its stomach, sure, but a Chinese army in the 20th century also marched on tobacco. His promise to his soldiers was simple. Three things. Food in their bellies, a roof over their heads when possible, and cigarettes in their pockets. He kept that promise with a discipline that bordered on logistical genius. Even in the worst stretches of the Civil War, when food was rationed and uniforms were patched together from whatever fabric could be scrounged,
Starting point is 00:14:16 the cigarettes kept moving. Tobacco was treated as a strategic supply, right next to ammunition. Soldiers who ran out of bullets were a problem. Soldiers who ran out of smokes were a crisis. When the communists finally took Beijing in 1949 and Mao stood on the gate of Tiananmen to announce the founding of the People's Republic, one of the very first economic acts of the new government was to deal with the foreign tobacco companies that had spent half a century turning the country into Duke's personal piggy bank. British American tobacco was kicked out, its assets seized, its factories nationalized.
Starting point is 00:14:51 On paper, this was a triumphant moment of decolonization. The imperialist, The serialists were gone. The cigarettes belonged to the people now. There was just one small detail nobody really wanted to talk about. The addiction stayed. This is the part of the story that always blows people's minds. The communists could expel foreign capitalists, redistribute land, restructure the entire economy, persecute landlords, melt down household pots to build steel furnaces during the Great Leap Forward, and rewrite the cultural rulebook from scratch during the Cultural Revolution. They could do all of that. What they could not do, and frankly never seriously tried to do, was wean the Chinese people off tobacco. The reason was simple and a
Starting point is 00:15:32 little bit sad. The new government needed money the same way the old one had, and the same product that had funded the Qing emperors, the warlords, and the British colonial machine was now sitting there, fully nationalised, ready to fund a brand new socialist state. The flag changed, The logo changed. The customer kept lighting up. For the next three decades, Chinese tobacco was a profitable mess. Each province ran its own factories with its own brands. Shanghai, Yunnan, Hubei, hundreds of local labels competing in a market that was technically socialist but functionally a free-for-all.
Starting point is 00:16:08 The central government just collected whatever revenue trickled up from the bottom. That brings us to 1982, the year when the chaos finally got organized by another lifelong smoker, who happened to be running the country. Deng Xiaoping had taken over after Mao's death and was busy dismantling the worst of the Maoist economic experiments. He was opening special economic zones, inviting foreign investment, and quietly admitting that markets might not actually be a tool of Satan.
Starting point is 00:16:36 And as part of that broader reorganisation, he looked at the tangled spaghetti of regional tobacco operations and decided it was time to stop leaving money on the table. The result was the China National Tobacco Corporation, CNTC for short, founded by government decree and given a mandate so broad it makes your eyes water. CNTC was not just another state-owned enterprise. It was the only tobacco company allowed to exist in any meaningful sense. Every regional factory got folded into its structure.
Starting point is 00:17:05 Every brand got placed under its umbrella. Every leaf of tobacco grown in the country. Every cigarette rolled, every pack distributed, every yuan collected from sales had to flow through this one monstrous entity. Competition was not regulated. It was eliminated. By the time the dust settled, CNTC controlled roughly 97% of the Chinese tobacco market. The remaining 3% is mostly smuggled, counterfeit or imported in such tiny volumes that nobody at headquarters even bothers to swat at it. The growth numbers from that point on are genuinely difficult to process. By 1996, just 14 years,
Starting point is 00:17:45 after CNTC was founded and roughly four decades after the revolution, the Chinese was smoking about four times as many cigarettes per year as they had under Mao, four times in one human lifetime. Today the company operates 19 subsidiary manufacturers spread across the country, churning out so much product that the next biggest cigarette company on Earth, Philip Morris International, looks like a corner shop by comparison. CNTC produces roughly four times the the volume of Philip Morris, not 4% more, four times. If you stack their annual output against every other major tobacco company on the planet combined, CNTC would still be ahead. On paper, the company sits inside the Ministry of Industry and Information Technology, which sounds appropriately
Starting point is 00:18:32 boring and bureaucratic. In practice, this is a piece of organizational fiction so polite it's almost charming. CNTC is not really inside the ministry. CNTC is a parallel state with its own hierarchy, its own revenue stream, its own enforcement powers, and its own internal culture. It has a workforce in the hundreds of thousands, more than most national armies. It owns hotels, it owns research institutes, it owns its own newspaper, it has its own pension fund, it has, in some provinces, its own police force, technically employed to crack down on cigarette smuggling, but functionally just a private security wing. Calling CNTCE a subsidiary of a government ministry is like calling the ocean a subsidiary of the beach.
Starting point is 00:19:15 Technically there's a relationship, but the proportions are off. And now we arrive at the part of the story that, once you understand it, you cannot unsee. The single most important fact about CNTC is not how big it is. It's not how rich it is. It's not how many cigarettes it makes. It's that the company is also the regulator. Yes, you read that correctly.
Starting point is 00:19:38 Read it again because it's worth it. The largest cigarette manufacturer in the world is also the official body responsible for regulating the tobacco industry in China. The same entity that profits from every cigarette sold is the entity that decides how cigarettes are sold, taxed, labelled, marketed and restricted. CNTC and the State Tobacco Monopoly Administration, the supposed government watchdog, are not just close. They are not just in bed together. They are in many practical respects the same organisation wearing two different name tags depending on which meeting you're attending. Imagine, just for a moment, that the largest meth distributor in your
Starting point is 00:20:16 city was also your family doctor, and also the head of the local DEA office. Imagine he was the one writing your prescriptions, the one selling you the product, and the one supposedly investigating the harm it was causing. Imagine you complained about him to a higher authority, and the higher authority turned out to be his cousin. That is structurally what we're dealing with here. Every conflict of interest you can possibly imagine has been baked into the foundation of the system. It's not a bug. It's the entire architecture. The head of CNTC is not some random business executive in a suit. The role consistently sits among the top 50 most powerful officials in the Chinese Communist Party hierarchy. We're talking about a level of political weight that places the tobacco boss in the
Starting point is 00:21:02 same league as cabinet ministers and provincial governors. When the head of CNTC speaks in a meeting, generals listen. When CNTC sends a delegation to discuss public health policy, those delegates are not lobbyists begging from the outside. They are sitting at the table with full voting rights, often physically in the room where decisions get made about the size of warning labels, the wording of advertising restrictions, the enforcement of smoking bans in restaurants, schools, hospitals and airports. The result is exactly what you would expect. Every serious tobacco control reform in the last 30 years has either been delayed, watered down or quietly strangled in committee.
Starting point is 00:21:41 When health officials propose larger warning labels, CNTC argues that big labels would hurt cigarette exports by making Chinese packs look ugly compared to foreign competitors. The argument is taken seriously. When activists push for graphic photo warnings showing diseased lungs, CNTC argues that such images would, and this is a real quote from internal materials, hurt the dignity of the Chinese people.
Starting point is 00:22:05 apparently a picture of a tumour wounds national pride. The cigarette itself, the thing creating the tumour, somehow does not. When public smoking bans get drafted, CNTC ensures that enforcement is left vague and toothless, which is why those decorative no-smoking signs we mentioned earlier are exactly that. Decrative. And the elegant cruelty of the system is that nobody inside it is technically lying. Every box is checked, every form is filed, every document is in order. They're just all signed by people drawing paychecks from the same source.
Starting point is 00:22:40 Asking CNTC to reduce smoking in China is like asking a casino to reduce gambling. You can ask. You can put it in writing. You can hold a press conference. The casino will smile, nod, and then go right back to building bigger casinos. Because reducing the activity you are organizationally designed to maximize is not a thing institutions do. It violates physics. It violates capitalism. It violates. whatever version of socialism is operating in Beijing this week. It just doesn't happen. And until that fundamental conflict gets broken open from the outside, no amount of well-meaning public health campaigning is going to put a dent in the dragon. We've now seen who the dragon is.
Starting point is 00:23:19 Next, we need to talk about how much it eats. Let's talk numbers, because this is where the whole machine stops being a curiosity and starts looking like something out of a dystopian economics textbook. In 2024, CNTC delivered roughly $223 billion in taxes and profits directly to the Chinese state, not revenue, not gross sales, profits and taxes after everything else was paid. That is the kind of money that makes finance ministers weep with joy, and public health officials weep for entirely different reasons. To put it in perspective, Apple, a company you may have heard of, the one with the trillion-dollar valuation and the queues outside its stores every September made about $100 billion less in pre-tax earnings during the same period.
Starting point is 00:24:05 A cigarette monopoly in a single country outperformed the most valuable consumer brand on the planet by the GDP of a small European nation. The percentage breakdown is where it really starts to hurt. That 223 billion represents somewhere between 6 and 7% of the entire central government budget of China, six or seven cents of every yuan that Beijing spends on roads, schools, hospitals, courts, embassies, satellites, and yes, the People's Liberation Army comes directly from someone's lungs. The total is roughly equivalent to the entire official military budget of the country. Read that sentence twice. The money the state collects from cigarettes is, in any given year,
Starting point is 00:24:48 in the same financial neighbourhood as the money the state spends on its army, Navy, Air Force, rocket force, nuclear arsenal, and overseas bases combined. Whenever a new aircraft carrier rolls out of the Jangnan shipyard, Spotify, it's Jay Shetty. Are you one of those media strategy people? Scrolling through spreadsheets, searching for an audience that pays twice as much attention to your ads than they do on social? Let me introduce you to fans.
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Starting point is 00:25:43 Visit Wayfair.ca. Wayfair, every style, every home. Somewhere, a chain smoker in Chengdu can technically claim a small structural credit. There's actually a black joke that circulates on Chinese social media, the kind of dark humour that survives the senses, because nobody can quite figure out whether to ban it. The joke goes something like this. Every time you light up, you're not just smoking, you're financing destroyers.
Starting point is 00:26:07 Every pack is a contribution to the next generation of stealth fighters. Some versions of the joke get even more specific. Two packs a day for a year, and you've personally funded a missile. A decade of heavy smoking is basically a small frigate's worth of patriotism. The joke is funny because it's absurd, and it stays funny because mathematically it's not really absurd. The accounting actually works out something like that. Chinese smokers are, in the most literal sense possible, paying for the hardware that gets paraded down Chang'an Avenue every October 1st.
Starting point is 00:26:38 Now zoom out and compare this to other countries that have built their treasuries on a single product. Saudi Arabia, which spent the entire 20th century becoming the textbook example of a state propped up by one commodity, brings in less from oil than the Chinese government brings in from cigarettes. Let that sink in for a second. The kingdom that built skyscrapers in the desert, funded global influence campaigns, and gave the world the term petra state, generates less revenue from the substance literally under its feet
Starting point is 00:27:07 than China generates from tobacco. Russia's energy exports? Smaller. The Norwegian oil fund's annual contribution to the national budget, also smaller. The economic engine in Beijing is not, as everyone in the West assumes, manufacturing electronics or building solar panels or owning rare earth mines. Those are big businesses, but they are not this. Tobacco is in a category by itself, and once you understand the numbers, the political behavior
Starting point is 00:27:35 makes a sad, perfect kind of sense. Ask any normal government to crack down on a major killer of its citizens, and they'll usually find some way to start. Smoking rates in the United States have dropped from over 40% in the 1960s to around 11% today. The United Kingdom is even lower. Australia is lower still. These countries took the hit. They walked away from significant tax revenue, accepted years of industry pushback,
Starting point is 00:28:02 and slowly squeezed the cigarette out of public life. They could afford to do it in part because cigarette taxes were a relatively small slice of their overall budgets. Painful, but survivable. For China, the math is completely different. Killing the golden goose here doesn't mean a small budget shortfall. It means a whole the size of the entire defence budget appearing overnight. No finance minister in any country in
Starting point is 00:28:26 human history has ever volunteered for that conversation. So the incentive structure produces the only outcome it can produce. Officials make speeches about public health. Poster appear in train stations warning about the dangers of smoking. The Ministry of Health publishes alarming reports about lung cancer rates, and meanwhile, in a completely separate building. CNTC quietly opens its 19th, 20th, 21st new factory, expands distribution to underserved rural counties, and hits another record year. The two systems coexist without ever really colliding. It's not even hypocrisy at this point. It's just bureaucratic specialisation. One department is allowed to worry. Another department is allowed to print money. The departments do not talk.
Starting point is 00:29:11 Everyone goes home for dinner, and the smoker on the street, the actual human being, whose lungs are doing the heavy lifting in this system is told, in a slightly apologetic tone, that smoking is bad but also please don't stop because the Navy needs new boats. The cognitive dissonance is so loud it has its own zip code. Which brings us to the artistry. Because if you are going to convince 300 million people to keep burning paper tubes for the glory of the state, you cannot just sell them a generic grey box. You have to seduce them.
Starting point is 00:29:40 And here is where the design game in Chinese tobacco crosses over from product packaging into something closer to a national visual language. Step into any Chinese tobacco shop, the kind with the bright fluorescent lights and the glass cases lined like a jewelry store, and you will see what looks like a museum exhibit. Pack after pack, brand after brand, each one a small masterpiece of graphic design,
Starting point is 00:30:04 calligraphy and cultural symbolism. These are not the brutalist warning label horror shows you might be used to. These are objects that people genuinely enjoy holding. Start with Chungwa, often pronounced more like Jonghua, which is basically the Rolls-Royce of Chinese cigarettes. The pack is wrapped in a deep regal red, the kind of red that historically only emperors and brides got to wear. In the centre sits a stylised image of Tiananmen Gate, golden and serene, framed by a panda-themed emblem because nothing says premium luxury,
Starting point is 00:30:36 quite like a national mascot that looks permanently exhausted. A carton of Chung-Wa is not just a smoke. It is a gift you bring when you want to impress your boss, propose marriage to your future in-laws, or thank a doctor for not killing your relative. The pack itself is the message. Open it later, maybe just frame it. Move down the shelf to China Super Slims which targets women and the kind of male smoker who wants to project sophistication. The packs feature delicate patterns inspired by traditional porcelain, the same blue and white motifs you'd see on a Ming vase in a museum. Then there's double happiness, named after the iconic Chinese character that means exactly what it sounds like, the symbol slapped on every
Starting point is 00:31:17 wedding banner from Harbin to Hong Kong. The pack is, predictably, drenched in the same matrimonial red as the Chungwa. Light one up at your own wedding and you're not just smoking. You are participating in a ritual that goes back centuries, except the ritual involves a substance that arrived on Portuguese ships and was popularised by an American with an atlas, but nobody really wants to bring that up at the toast. Then there are the legendary Zhang Nanhai cigarettes. named after the walled compound in Beijing where the top leadership of the Communist Party actually lives and works. Yes, a cigarette is named after the literal seat of power. Imagine if the Americans sold a brand called the West Wing, complete with a little graphic of the Oval Office on the pack,
Starting point is 00:31:57 and you'll get a sense of the audacity. These cigarettes became wildly popular in the 2000s, after they were featured in a hit television drama called Struggle, which functioned as a kind of Chinese millennial answer to friends. The young, attractive urban characters on the show smoked Zhang Nanhai constantly, in cafes, on rooftops, during emotional confrontations, basically every scene that didn't require chewing. The product placement was so effective that an entire generation of young Chinese viewers walked into a tobacco shop the next day and asked for the brand by name. CNTC has never officially confirmed any deal with the show's producers, naturally, because they wouldn't need to. The series did the marketing for free. Now here is the joke that isn't really a joke.
Starting point is 00:32:42 In most countries with even modestly functional public health policies, this kind of packaging would be illegal. Vietnam, right next door, requires graphic warning images covering at least half of the pack. You buy a pack in Hanoi and you get a high-resolution photo of a diseased lung, a rotting tooth, or a tracheotomy hole staring up at you. Suttal it is not. Effective, the data suggests it absolutely is. Australia went even further. After years of legal battles with the tobacco industry, the Australian government rolled out plain packaging in 2012.
Starting point is 00:33:15 Every cigarette pack in the country was forced into a uniform shape, covered in a colour that researchers had specifically tested as the most unappealing shade on the human visual spectrum. The colour, officially called Pantone 448C, is a kind of swampy brownish green that has been described as drab, dark brown, opaque cuchet, or most memorably. The ugliest colour in the world. Australia paid scientists to find a colour that physically repels human eyeballs
Starting point is 00:33:44 and then mandated it on every pack of cigarettes in the country. That is what a government that genuinely wants to reduce smoking actually does. China's answer to all of that is a single line of text in tiny font that reads something like, smoking is harmful to your health. The warning is positioned wherever at least interferes with the actual design, sometimes at the bottom edge, sometimes along the side, often in a colour that's only slightly darker than the background it sits on. It's like the legal disclaimers at the end of pharmaceutical ads,
Starting point is 00:34:14 except instead of being read in a panicked voice at triple speed, it's just visually whispered. You can stare at a pack of chung-wa for 30 seconds and not consciously register that the warning exists. The warning is technically present, which satisfies the law, but it is functionally invisible, which satisfies the marketing department. Everybody at the meeting goes home happy, everybody except the customer who will eventually meet a pulmonologist. The targeting strategy hidden inside all this beauty is the part that should genuinely concern anyone watching from outside. Chinese tobacco design is not just aesthetic indulgence. It is a deliberate, sophisticated, decades-long campaign to make the cigarette pack itself a desirable object,
Starting point is 00:34:58 especially for young people who are still forming brand loyalties. A 19-year-old in Wuhan does not look at a pack of Jongnan Hai and see a future emphysema diagnosis. He sees the same logo his favourite TV character lit up on camera, the same brand his cool older cousin smokes, the same calligraphy that signals taste and worldliness. The pack is doing the work that, in other countries, the law has explicitly prohibited Pax from doing.
Starting point is 00:35:24 It is recruiting the next generation. Every year that this design freedom persists, another cohort of teenagers gets locked into a relationship with a product that has a measurable habit of killing about half of its long-term users. And the company in charge of all of it, as we already covered, is also the regulator who is supposed to be deciding whether the packaging needs to change. The Fox is not just guarding the henhouse. The Fox designed the henhouse, sell.
Starting point is 00:35:50 the eggs, sets the ticket prices for the henhouse tour, and writes the henhouse's annual safety report. The hens, for their part, just keep walking in through the front door because the front door is genuinely beautiful and matches their kitchen. If the packaging is the seduction, the next trick is the lie that keeps people from walking away. Pick up a cigarette pack almost anywhere in China, and there is a decent chance you'll see one of three magic words printed somewhere on the box. Light, mild, low tar. Sometimes all three, sometimes just one, sometimes accompanied by a very precise looking number, like 8 milligrams of tar or 6 milligrams, or, for the truly health-conscious smoker, an almost
Starting point is 00:36:31 laughably low 1 milligram. These numbers are presented with the same scientific authority you'd expect on a vitamin bottle, crisp font, decimal points, often a little graphic of a leaf or a feather to drive the message home. The implication is unmistakable. This cigarette is the responsible choice. This one is for the modern smoker who cares about his lungs. The thing is, every word of that messaging is, by international scientific consensus, a fraud.
Starting point is 00:36:59 In the United States, the European Union, Australia, Canada, and most of the developed world, you cannot legally put light, mild, low, or any equivalent term on a cigarette pack. The ban started rolling out in the early 2000s, after decades of research finally caught up with what tobacco companies had been doing since the 1960s. The whole light cigarette concept was the result of one of the most successful and most cynical marketing pivots in commercial history. When the first wave of cancer studies hit American consumers in the 50s and 60s, smoking rates started to wobble. People got nervous, some considered quitting, the industry, faced with the terrifying prospect of losing customers to their own mortality, came up with a brilliant solution.
Starting point is 00:37:42 They invented a cigarette that felt safer, not actually safer, mind you. Just safer feeling. The engineering trick was almost insulting in its simplicity. They drilled tiny ventilation holes into the cigarette filter, so tiny you couldn't see them with the naked eye. When researchers tested these cigarettes on machines, the machines would draw smoke through the filter, and the air leaking through the ventilation holes would dilute that smoke,
Starting point is 00:38:07 producing officially measured tar and nicotine numbers that were much lower than regular cigarettes. Great news for the lab report. useless news for the actual human being doing the smoking, because here's what happens when a human picks up one of these things. The smoker's lips and fingers cover most of the ventilation holes. Smokers also inhale more deeply, hold the smoke longer,
Starting point is 00:38:28 and often smoke more cigarettes per day to chase the same nicotine hit their bodies have come to expect. The end result is that light cigarette smokers absorb roughly the same amount of nicotine, the same amount of tar, and the same amount of carcinogens as people smoking regular cigarettes. sometimes more, in some studies distinctly more, and the medical data over the next several decades was brutal. Lung cancer rates in the United States kept climbing through the 70s and 80s, even as the percentage of smokers choosing light brands skyrocketed past 80% of the market.
Starting point is 00:39:01 The shape of the cancer changed too. A specific type of lung tumor called adenocarsinoma, which develops deeper in the lung where smoke from light cigarettes is more likely to reach, became dramatically more common. The product had not made anyone safer. It had just convinced a generation of smokers to inhale more aggressively in a different part of their chest. By the time the lawsuit started rolling in during the 1990s, the internal company documents were damning. Marketing executives had known for years that light cigarettes were not actually lighter in any health-relevant sense. They were just easier to sell to people who were nervous about dying. The American legal system eventually arrived at a verdict, calling a cigarette light the courts and regulators decided was lying to the customer. The terms got banned. Now jump to China today, and absolutely none of that ever happened. Roughly one in five cigarettes sold in the country, somewhere around 20% of the total market, is marketed as low tar. The category is growing every year. The packs proudly display the same vocabulary that has been illegal everywhere else for over two decades.
Starting point is 00:40:07 Chinese consumers, many of them genuinely worried about smoking-related illness, because they have seen their relatives die of it, walk into a shop, see the words low tar in elegant calligraphy, and reach for the box that feels like a compromise. They are choosing what they sincerely believe is a less harmful product. They are getting, scientifically speaking, the exact same disease on a slightly different timeline. CNTC, which controls the messaging, knows all of this. Chinese public health researchers have been publishing papers on the failed science of LOTAR cigarettes for years. The World Health Organization has hand-delivered the evidence to Beijing
Starting point is 00:40:45 on multiple occasions. The company's own scientists, the ones with PhDs working in the Gleaming Research Institute's CNTC owns, can read English-language medical journals just fine. The decision to keep the labels is not a knowledge gap. It is a business decision. The LOTAR category exists specifically to retain the smokers who would otherwise quit. It is a parachute for the wavering customer. It is the off-ramp that doesn't actually go anywhere. You think you're stepping towards safety, you walk down the ramp, and you find yourself back on the same highway, just with slightly better fonts on your packaging. The really audacious part of this whole arrangement is that CNTC has actually launched a public health initiative around low-tar cigarettes. Yes, a health
Starting point is 00:41:31 initiative, from the cigarette company. The company describes itself as committed to harm reduction, with public-facing materials about its research into reduced tar formulations, low-nitrosamine tobacco varieties, and even, in some marketing pieces, the use of traditional Chinese medicine ingredients to, quote, soften the impact on the respiratory system. Some premium brands contain extracts of herbs that have been used in Chinese pharmacology for centuries, advertised as if they could neutralise the carcinogens in the same smoke they are being mixed with. It's the cigarette equivalent of putting a kale leaf on top of a deep-fried twinkie and calling it a salad. There is no scientific evidence that any of these herbal additions reduce harm in any measurable way. There is,
Starting point is 00:42:15 however, plenty of evidence that they sound great in marketing copy. You would think this is the part of the story where the international community steps in. Surely the World Health Organization, with its global mandate and its army of public health experts has something to say about all of this. And technically, yes. In 2003, the WHO finalized something called the Framework Convention on Tobacco Control. It was the first international treaty negotiated under WHO Authority, signed by 168 countries, including China in 2005. The treaty laid out a clear roadmap, big graphic warning labels, bans on misleading terms like light and mild, tax increases, restrictions on advertising, smoking
Starting point is 00:42:58 bans in public spaces, the full anti-tobacco playbook written down agreed to, ratified and supposedly binding. What happened next is a masterclass in how to sign a treaty without actually obeying it. The Chinese delegation that negotiated and translated the agreement included representatives from, of course, CNTC. The same company the treaty was designed. to constrain was sitting in the room, helping decide what the Chinese version of the treaty would say. Anyone who has ever played a board game with a younger cousin who insists on being the rulekeeper knows exactly how this works out. The Chinese language version of the convention that eventually made it into domestic law was, shall we say, creatively translated. Key phrases were softened,
Starting point is 00:43:45 hard requirements became suggestions, deadlines became aspirations. The version of the treaty that Chinese policymakers actually consult is, in several important places, a fundamentally different document from the one most other countries are working with. The signature on the original was binding. The translation was, apparently optional. So while the rest of the world has been slowly tightening its tobacco rules, China has been doing something extraordinary. Expanding. CNTC has spent the last two decades building what can only be described as a parallel education pipeline in some of the poorest provinces in the country. They are called Hope Schools or Tobacco-sponsored Schools, and the model works exactly like it sounds. CNTC donates money to build a primary school in a
Starting point is 00:44:30 poor rural village. In exchange, the school gets named after the donor. There are tobacco-funded schools across China with names that boil down to Cigarette Sunshine Elementary, or Tobacco Brilliance Primary. The walls of these schools are sometimes painted with motivational slogans that any normal educator would read once and resign on the spot. One real example, photographed and widely circulated, read something along the lines of, Talent is born from hard work, tobacco helps you succeed. This is the message being painted,
Starting point is 00:45:00 in cheerful colours, on the wall of a building full of seven-year-olds. The export ambitions are even more breathtaking. CNTC has spent years positioning itself as a key player in the Belt and Road Initiative, the massive Chinese infrastructure and influence project that stretches from Southeast Asia, across Central Asia, to Africa and Eastern Europe. Cigarettes have quietly become one of the products riding those trade routes. Chinese tobacco now reaches roughly 125 countries in some form,
Starting point is 00:45:29 whether through direct exports, joint ventures with local producers or licensed brands. The growth markets are exactly where you'd expect them to be. Developing economies with weak public health systems, young populations, rising disposable incomes, and not enough regulatory infrastructure to push back against aggressive packaging or misleading marketing. The strategy is to recreate country by country the same conditions that made China such a profitable customer for the original British and American tobacco firms a century ago. The students have, unfortunately, become the teachers.
Starting point is 00:46:05 Inside China, the situation for anyone who tries to push back has gotten visibly harder since around 2017. The political climate under Xi Jinping has tightened across the board, but tobacco activism has been hit particularly hard. The handful of brave Chinese public health lawyers and activists who used to file lawsuits against CNTC, demand transparency on smoking-related deaths, or organised public campaigns calling out the company's role in the country's cancer epidemic, have mostly gone silent, not because they change their minds,
Starting point is 00:46:35 because the cost of speaking up has risen sharply. Lawsuits against CNTC simply do not move through. the court system anymore. Civil society organisations that focused on tobacco control have lost their funding, their permits, or their ability to operate. Investigative journalists who once chase these stories have been reassigned, fired, or have learned which subjects produce a polite call from a government office. The result is a perfect feedback loop with no exit valve. The company that profits has captured the regulator that should constrain it. The state that should reform the system is financially dependent on the system not being reformed. The activists who should be raising the alarm have been
Starting point is 00:47:14 quietly muted. The international treaties that should provide outside pressure have been translated into a domestic version that doesn't quite say the same thing. The journalists who should document the toll cannot publish the story. And the smokers, the 300 million human beings who are paying for all of it with their lungs, have been raised inside a culture that treats their addiction as a form of social grace. Which leaves the obvious question. How does any of this ever change? Honestly, the structural answer is sobering. Throughout the entire history of Chinese tobacco, from the Qing emperors who first decided to tax it rather than ban it, through the foreign companies that industrialized it, through Mao who weaponized it, through
Starting point is 00:47:54 Deng who consolidated it, through every leader since who has lived comfortably on its revenue, there has been one persistent feature. The decision about what happens to tobacco in China has always come from the very top. It has never been the result of a grassroots movement, a court case, a journalistic expose, or international pressure. It has always been one person sitting in a quiet office, deciding whether to keep the machine running or to start turning it down. The current occupant of that office is not a smoker, which is a tiny piece of unexpected good news. Xi Jinping famously quit cigarettes years ago and his government has occasionally pushed for stronger public smoking bans in major cities. But pushing for slightly better enforcement in Beijing,
Starting point is 00:48:39 is a long, long way from dismantling the financial engine that pays for everything else his government wants to do. In the short term, the brutal honest answer is that nothing is about to change. CNTC will keep growing. The factories will keep humming. The brands will keep getting more beautiful. The schools with the absurd slogans will keep opening. The smokers will keep lighting up at weddings, at meetings, in hospital corridors, in restaurants, in train stations, in their own homes. Somewhere between one and two million Chinese citizens, will die this year from smoking-related disease, and somewhere around 2 million will die next year, and the year after that, and the year after that.
Starting point is 00:49:17 The math has been running for decades. It will keep running for decades more. And on the long timeline of empires and dynasties, 400 years of state and tobacco moving in lockstep is a habit that no single press release, no foreign treaty, no foreign cancer study, and no well-meaning documentary on the internet is going to break. The only thing capable of breaking it is the one institution that built it, and that institution right now has absolutely no reason to want it broken.

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