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Head of State Tobacco Monopoly Administration says great importance will be attached to vaping R&D

Reprinted from Study Times. Reporter: Director Ling, hello. In 2014, the first year of fully implementing the spirit of the Third Plenary Session of the 18th CPC Central Committee and deepening reform across the board, reform tasks were significant and ch

Transferred from Learning Times

Ling Chengxing, Director of the Tobacco Monopoly Bureau

Reporter:Hello, Director Ling! 2014 is the first year to fully implement the spirit of the Third Plenary Session of the 18th CPC Central Committee and comprehensively deepen reforms. The reform task is important and arduous. How can the tobacco industry deeply understand the spirit of the plenary session, firmly grasp the key directions, and effectively implement the spirit of the Third Plenary Session of the 18th CPC Central Committee?

Ling Chengxing:The "Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reforms" reviewed and adopted by the Third Plenary Session of the 18th Central Committee of the Communist Party of China is a scientific guide and action program for our party to comprehensively deepen reforms at a new historical starting point. The tobacco industry not only shoulders the responsibility of ensuring national fiscal revenue and meeting social needs, but also shoulders the responsibility of promoting tobacco control compliance and safeguarding consumer interests. We must strive to serve people's health, strive to serve fiscal revenue, and strive to serve social needs.

At this year's National Tobacco Work Conference, we clearly proposed that the tobacco and grass industry should transform the spirit of the plenary session into a guide for industry reform, a driving force for development, and work performance, and work hard to plan three major issues and improve five images to achieve practical results. What are the dividends of the three major issues we have raised, namely, the reform of the tobacco and grass industry? Where is the potential for development? Where is the goal of chasing?& rdquo;, the five images are the image of deepening reform of the tobacco industry, the image of scientific development, the image of tobacco control and compliance, the image of standardized management, and the image of the cadre team.

Since last year, the tobacco industry has thoroughly implemented the spirit of the 18th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 18th Central Committee of the Communist Party of China, thoroughly studied and implemented the spirit of General Secretary Xi Jinping's series of important speeches, carefully planned three major issues, comprehensively improved five images, and always Adhere to focusing on improving the quality and efficiency of economic growth, comprehensively do a good job in various tasks, and maintain a good development trend of production and operation. The national tobacco work has shown two characteristics of strict regulation and three major contributions.

“Two controls are strict. First, the flue-cured tobacco purchase plan is strictly controlled. Last year, 20.92 million acres of flue-cured tobacco were planted across the country, a decrease of 260,000 acres; 50.63 million tons of flue-cured tobacco were purchased, reducing production by 4.16 million tons. This year, it was proposed to control the country's flue-cured tobacco planting area to no more than 18.8 million acres, and determined a planned red line that the number of flue-cured tobacco purchases should not exceed 47 million tons. Judging from the actual implementation situation, the flue-cured tobacco planting area is 18.37 million mu, a decrease of 2.55 million mu from last year, and is strictly controlled within the plan arrangements determined at the beginning of the year. Second, the production and marketing of rolled tobacco are strictly controlled. Last year, the country produced 50.675 million cases of cigarettes, an increase of 1.7%, a decrease of 2.06 percentage points from the average level of the previous 10 years; the sales of cigarettes was 49.996 million cases, an increase of 1.2%, a decrease of 2.32 percentage points from the average level of the previous 10 years. In the first half of this year, the country produced 25.938 million boxes of cigarettes, a year-on-year increase of 0.2%; the sales of cigarettes were 26.647 million boxes, the same as the same period last year.

“Three big contributions. First, it contributes greatly to stable financial growth. Last year, the industry realized a total of 955.98 billion yuan in taxes and profits, an increase of 91.05 billion yuan or 10.5 percent, and a total of 816.12 billion yuan in fiscal revenue, an increase of nearly 100 billion yuan or 13.9 percent. In the first half of this year, the total amount of taxes and profits was 579.54 billion yuan, an increase of 48.82 billion yuan or 9.2%. In addition to paying various taxes and fees in accordance with the law, the tobacco industry will also hand over 45 billion yuan in special after-tax profits to the national finance this year. The first batch of 12 billion yuan was handed over on June 20, making a special contribution to the national financial income increase. Second, it has made great contributions to tobacco farmers to get rid of poverty and become rich. Last year, the tobacco industry provided more than 104 billion yuan in income and subsidies to 2 million tobacco farmers across the country, with an average household income of 52,000 yuan. Among them, the investment in tobacco production infrastructure construction is 15.87 billion yuan, and the construction of modern tobacco agriculture has become a virtuous project that enriches the people and strengthens the county in old and poor areas and benefits future generations. It is expected that the average household income of tobacco farmers across the country will continue to grow this year. Third, it has contributed greatly to the employment and income increase of cigarette retail customers. The tobacco industry provides jobs to more than 5 million cigarette retail customers across the country. Last year, the gross profit from cigarette operating exceeded 100 billion yuan, and the average household income reached 25,000 yuan. In the first half of this year, the average gross profit of cigarette sales by retail customers nationwide reached 15,700 yuan, a year-on-year increase of 8.96%; the gross profit margin of cigarette retail reached 11.83%, a year-on-year increase of 0.29 percentage points.# p#pagination title #e#

Reporter:Over the past 30 years since the country implemented a monopoly system on tobacco, the development results of the tobacco industry have been remarkable. Under the new situation, the development of the tobacco industry is also facing new challenges, new contradictions and new problems. How will the tobacco industry achieve scientific development?

Ling Chengxing:Over the past 30 years since the establishment of China Tobacco Corporation, the tobacco industry has generally gone through three stages: establishment, hard work, monopoly legislation, stable development, deepening reform, and creating brilliance. It has gone through an extraordinary journey. Under the strong leadership of the Central Committee of the Communist Party of China and the State Council, with the strong support of various localities and departments, and through the joint efforts of all employees, the long-standing situation of the tobacco industry of scattered enterprise structure, chaotic market order, low management level, and poor operating efficiency has been completely changed. A new modern tobacco industry system has been basically established, the quality and efficiency of industry development have been continuously improved, and the overall competitive strength has been significantly enhanced, making positive contributions to increasing national fiscal revenue and safeguarding consumer interests. This is an important achievement of the tobacco industry's continuous deepening of reforms and accelerated development. However, it should also be noted that under the new situation, the development of the industry faces four major problems: falling growth rate, increasing industrial and commercial inventories, narrowing structural space, and approaching demand turning point.

General Secretary Xi Jinping pointed out: Reform is caused by problems and is deepened while constantly solving problems. rdquo; According to the characteristics of the dual attributes of tobacco products, we must have a strong awareness of problems, be guided by major issues, seize key issues to study and think, continuously promote self-reform, self-improvement, and self-innovation in the industry, and strive to release the dividends of reform.

Since May 2013, the Party Leadership Group of the State Tobacco Monopoly Administration has asked the entire industry to seriously think, plan, and practice where the dividends of reform are, where the development potential is, and where the goals of catching up are. ldquo; After the three major topics were put forward, the tobacco industry conducted in-depth investigations and studies around the three major topics, extensively pooled people's wisdom, and put forward many in-depth thinking and far-reaching plans and suggestions. Members of the Party Leadership Group of the State Tobacco Monopoly Administration took the lead and conducted investigations and studies on five topics: cigarette quality, tobacco production, marketing, preservation and appreciation of monetary funds and marketing expense control, and going global development strategies, and put forward many ideas, plans, and countermeasures. and measures to make the three major topics more concrete and operational.

After a period of research, analysis, and planning, we believe that the dividends of reform are mainly in terms of planning and arrangements, and strive to allocate resources to the market; in terms of cigarette marketing, we strive to build a unified, open, competitive and orderly market system. dividends; in terms of brand specifications, we strive to collect dividends from improving the mechanism for selecting the best and the fitting-out, and market-oriented exit; in terms of corporate governance structure, we strive to collect dividends from coordinated operation and effective checks and balances; in terms of personnel system, we strive to collect dividends from establishing a mechanism for managers to be promoted and demoted, employees to be able to enter and exit, and income to be increased and reduced; in terms of the approval system, we strive to collect dividends from streamlining administration, delegating power, and efficient operation. The potential for development is mainly the potential for structural adjustment, the potential of the international market and the potential for maintaining and increasing the value of monetary funds. The goal of catching up is mainly to catch up with the top three tobacco multinational companies, catch up with the vanguard of cigarette manufacturing companies, catch up with large raw and auxiliary material production groups, and catch up with new trends in modern enterprise management.

Reporter:Focusing on the spirit of the Third Plenary Session of the 18th CPC Central Committee, how can the tobacco industry face the big test of comprehensively deepening reforms?

Ling Chengxing:At that time, the tobacco industry was fully implementing the spirit of the Third Plenary Session of the 18th CPC Central Committee and effectively transforming the spirit of the plenary session into a guide for the reform of the tobacco industry, a driving force for development, and a performance in work. Specifically, we must follow the guidance of studying and implementing the spirit of the plenary session, strive to enhance the overall awareness of the tobacco industry and enhance five images, namely, enhance the image of deepening reform, enhance the image of scientific development, enhance the image of tobacco control and compliance, and enhance the image of standardized management. Image, enhance the image of the cadre team.

The first is to comprehensively enhance the image of the industry in deepening reforms. Conscientiously implement the spirit of the Third Plenary Session of the 18th Central Committee of the Communist Party of China, adhere to the direction of socialist market economic reform, adhere to the tobacco monopoly system, further increase the intensity of market-oriented reforms, increase the intensity of corporate governance structure reform, and increase the intensity of state-owned assets management system reform, increase the intensity of reform of income distribution system, increase the intensity of reform of simplification and decentralization, increase the intensity of reform of selection, appointment and exchange of leading cadres, and increase the intensity of land transfer reform to serve the vast number of tobacco farmers. Increase the intensity of reform“” and opening up to implement the strategy of going global development. We will plan and conduct in-depth research on the reform ideas and measures of the Eighth National Congress of the Communist Party of China as a whole, introduce them item by item, and implement them step by step, so that we will neither delay nor rush away.# p#pagination title #e#

The second is to comprehensively enhance the image of scientific development in the industry. Continue to focus on the basic principles and strategic tasks of improving cigarettes, strive to find an endogenous development path of quality improvement, value improvement, technological progress, and cost savings, and strive to maintain a good situation of coordinated development, common development, and harmonious development. The development goals we plan for the tobacco industry in the next three years of the 12th Five-Year Plan are: strive to pay over more than 800 billion yuan in fiscal revenue in 2013 (achieved), strive to achieve a total tax revenue of more than 1 trillion yuan in 2014, and strive to pay over the total fiscal revenue in 2015. Close to 1 trillion yuan. Achieving this goal is not only an important symbol of implementing the basic policy and strategic tasks of improving cigarettes, but also a concrete manifestation of enhancing the image of scientific development of the industry.

The third is to comprehensively enhance the image of standardized management in the industry. The tobacco industry has special products and special systems and is the focus of social attention. Even if individual units, individual enterprises, and individual employees engage in irregular behaviors, it will have an adverse impact on the image of the entire industry. Faced with a huge workforce, huge business transactions, and huge capital flows, we will always adhere to strict regulations as the lifeline to maintain the sustainable and healthy development of the industry, resolutely eradicate the breeding ground for various irregular behaviors, and strive to Promote industry standardized management from the legal level, strive to promote industry standardized management from the institutional level, strive to promote industry standardized management from the moral level, and comprehensively enhance the image of industry standardized management.

The fourth is to comprehensively enhance the image of the industry cadre team. Conscientiously implement the spirit of the National Organizational Work Conference, study well, understand well, and implement General Secretary Xi Jinping's important speech at the organizational work meeting, comprehensively grasp the implementation of the "Opinions on Further Strengthening the Establishment of Leadership Teams in Units Directly under the Industry" by the Party Group of the State Tobacco Monopoly Administration, continuously strengthen the ideological construction, organizational construction, style construction, anti-corruption construction and system construction of the leadership team, and strive to create a high-quality leadership team that is pragmatic and honest for the people. At the same time, we will vigorously strengthen grassroots construction in the industry, coordinate and promote the construction of various talent teams, and strive to cultivate a high-level, high-skilled and high-quality talent team.

The fifth is to comprehensively enhance the industry's image of tobacco control compliance.

Reporter:In recent years, tobacco control has been a hot issue of social concern. Under the current situation, how should we understand the issue of tobacco control? What role does the State Tobacco Monopoly Administration play in this process?

Ling Chengxing:Our country is a party to the World Health Organization Framework Convention on Tobacco Control (hereinafter referred to as the "Convention"). Since the Convention came into effect for my country on January 9, 2006, my country's tobacco control work has been solidly and steadily advanced, and its responsibilities and obligations stipulated in the Convention have been well fulfilled.

At the end of 2012, eight ministries and commissions including the Ministry of Industry and Information Technology jointly formulated and issued the "China Tobacco Control Plan (2012— - 2015)"(hereinafter referred to as the "Plan"), which clarified the current guiding ideology for promoting tobacco control work in my country is to be guided by Deng Xiaoping Theory, the“ Three Representative” Important Thoughts, and the Scientific Outlook on Development, adhere to the principle of protecting people's health, reducing tobacco demand and controlling tobacco supply as the main line, and comprehensively promoting public smoking places. Focus on improving tobacco control laws and regulations, deepening tobacco control publicity, strengthening tobacco hazard warnings, increasing tobacco prices and taxes, extensively banning tobacco advertising, promotion and sponsorship, and strive to promote the creation of a smoke-free environment, preventing young people from smoking, changing smoking customs, and providing smoking cessation services. Key special projects such as combating illegal trade will continue to reduce the smoking rate among the population, effectively reduce the harm of tobacco, and comprehensively improve public health.

To promote my country's tobacco control work, we must scientifically judge and accurately grasp the economic and social development trends and the tobacco control situation, make full use of various favorable conditions, accelerate the resolution of outstanding contradictions and problems, and comprehensively promote tobacco control work in a planned and focused manner. The main tasks of my country's tobacco control at present and in the future are reflected in nine aspects: First, comprehensively implement smoking bans in public places. The second is to carry out in-depth publicity and education on tobacco control. Third, tobacco advertising, promotion and sponsorship are widely prohibited. The fourth is to continuously strengthen the warning of health hazards on cigarette packaging labels. The fifth is to effectively strengthen tobacco tax, price and revenue management. Sixth, establish and improve the composition control and information disclosure system of tobacco products. The seventh is to effectively crack down on illegal trade in tobacco products. Eighth, actively provide smoking cessation services. Ninth is to accelerate the construction of a tobacco monitoring and monitoring information system.# p#pagination title #e#

Regarding tobacco control compliance, the State Tobacco Monopoly Administration's position is clear and consistent: smoking is harmful to health, tobacco control is imperative, and compliance is an obligation and a responsibility. As an important force in state-owned enterprises, the tobacco industry must consciously proceed from the overall work of the party and the country, actively fulfill its social responsibilities, strictly implement tobacco monopoly laws and regulations, conscientiously fulfill its responsibilities and obligations clearly stipulated in the Convention and the Plan, and actively do a good job in the research and implementation of the Protocol on the Elimination of Illicit Trade in Tobacco Products. We will strictly follow the national plan to control the growth of cigarettes, crack down on illegal trade in tobacco products, persist in reducing the content of tar and other harmful ingredients in tobacco products through scientific and technological innovation, resolutely support smoking bans in public places, resolutely support smoking bans among primary and secondary school students, and resolutely dissuade young people from smoking and actively practice responsible tobacco.

In December 2013, the General Office of the CPC Central Committee and the General Office of the State Council issued the "Notice on Matters Related to Leading Cadres Taking the Lead in Smoking Ban in Public Places", requiring leading cadres at all levels to play a leading role in smoking bans in public places. After the notice was issued, the tobacco industry took the following three specific measures.

The first is to suspend the internal tobacco monopoly retail license of party and government agencies. On January 14, 2014, the State Tobacco Monopoly Administration issued a special document requiring provincial tobacco monopoly bureaus to conduct a thorough investigation on the establishment of tobacco retail outlets within party and government agencies at all levels. At the same time, we will stop issuing new tobacco monopoly retail licenses for canteens and commissaries within party and government agencies. For retail outlets that have legally obtained tobacco monopoly retail licenses, the State Tobacco Monopoly Administration is studying plans to properly resolve them in accordance with laws and relevant policies. The second is to take the lead in not smoking at the National Tobacco Work Conference. At the 2014 National Tobacco Work Conference, we clearly emphasized that leading cadres in the tobacco industry must take the lead in banning smoking in public places. This time, a sign saying no smoking was hung on the walls of the venue, and ashtrays were no longer placed on the tables at the venue. No smokers were seen in the venue or in the corridors. The third is to work together from top to bottom to fully understand the importance of smoking bans in public places. Leading cadres at all levels in the industry must take the lead in strengthening self-discipline and taking the lead in doing a good job in smoking bans in public places. Violations of notices must be dealt with seriously and will never tolerate them.

At the same time, we should also note that smoking has a history of hundreds of years and there is still objective market demand. This determines that tobacco control is a long-term, complex and arduous task. Attention must be paid to avoiding one-sidedness and absolute., and the tendency to expand, so that tobacco control work can be promoted in a healthy, orderly, effective and solid manner.

Reporter:While strictly implementing tobacco control and compliance, how can the tobacco industry further optimize the allocation of tobacco resources and improve the quality of development?

Ling Chengxing:While strictly implementing tobacco control and compliance, the tobacco industry must be oriented to adapting to market demand, pay more attention to optimizing the allocation of tobacco resources, continue to improve the quality of industry development, comprehensively enhance the overall competitive strength of China's tobacco, and strive to maintain sustained and healthy development of the industry.

The first is to comprehensively strengthen brand cultivation. Strengthen the construction of cigarette categories, improve brand development planning, guide brand development by categories, and accelerate the formation of a brand competition development pattern led by nationally renowned brands, supported by regional advantageous brands, and led by innovative and characteristic brands. Comprehensively promote the quality construction and image building of cigarette brands, effectively enhance the driving force of high-end cigarettes, high-priced cigarettes, and low-tar cigarettes brands, and strive to promote the optimization and upgrading of cigarette products. Establish and improve the innovation and elimination mechanism for brand specifications, formulate industry cigarette brand specifications management methods with clearer implementation orientation and more precise management in accordance with the requirements of bigger brands, refined specifications, and rising prices, and improve the market-oriented exit mechanism for the survival of the fittest., strive to create a number of key specifications with clear positioning, outstanding style, leading technology, and good benefits. We attach great importance to the research and development of new tobacco products such as heated non-combustible cigarettes, e-cigarettes, and mouth-filled cigarettes, and regard it as a strategic, overall, and long-term major issue related to the sustainable development of the industry. We will plan ahead, systematically design, highlight key points, and advance in an orderly manner.

The second is to vigorously promote conservation and development. Strengthen the management of existing funds, optimize the deposit portfolio through science and technology, and maximize interest income. Advocate and encourage intra-industry financial integration, promote entrusted loans between tobacco industrial and commercial enterprises through banks, and achieve effective docking and win-win development between enterprises with idle funds and enterprises with tight funds. Efforts will be made to strengthen expense reduction, focus on strengthening marketing expense control, ensure that the scope, standards, and procedures of marketing expense expenditure are legal and compliant, and ensure that the proportion of total expenditures, single box expenses and sales revenue continues to decrease. Adhere to strict economy, oppose extravagance and waste, and prevent lavish spending, prevent using money regardless of cost, and prevent using money in violation of regulations. Comprehensively promote the recycling of cigarette packaging boxes, actively carry out joint transportation of cigarette trays in the same city, and resolutely control excessive packaging of cigarettes.# p#pagination title #e#

The third is to actively expand the international market. Accelerate the construction of overseas cigarette production and marketing bases, be guided by cultivating export-oriented tobacco companies, and strive to make significant progress in expanding key cigarette markets in Southeast Asia, Northeast Asia, the Middle East, Central and South America, Europe, and Africa. Accelerate the operation of overseas tobacco leaf entities, rely on the unified tobacco leaf market of Xionghou and Houhou, guarantee by the policy support of the National Bureau, and use overseas entity companies as carriers to continuously enhance the right to speak in importing high-quality tobacco leaf bases, high-quality tobacco leaf resources, and high-quality tobacco leaf pricing. The right to speak. Accelerate the pace of inviting the cigarette industry to go global, strive to catch up with the R & D and manufacturing level of international advanced cigarette companies, while providing technical equipment to overseas cigarette companies in the industry, actively expand foreign customers and resources, and continue to increase the share and influence of China cigarette companies in the international market. Boldly explore cross-border mergers and acquisitions, organize specialized forces, find out the market conditions, study careful plans, and advance them solidly and steadily.

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HNB Editorial Team

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