Chinese smugglers caught trafficking North Korean cigarettes face steep penalties and prison time as Beijing intensifies enforcement against illicit tobacco trade, but Pyongyang’s cigarette manufacturers are fighting back by diversifying their product offerings to keep Chinese consumers hooked.
Earlier this month, Chinese nationals convicted of illegally distributing North Korean cigarettes in Dandong received two-year prison sentences along with fines of 200,000 yuan (approximately $41,000), according to a source in China.
Chinese authorities have launched comprehensive investigations into the entire supply chain of illegally imported North Korean goods. The crackdown now targets not only smugglers but also merchants involved in storing and selling the contraband, causing the market to contract significantly.
Daily NK reported in August that North Korean companies involved in cigarette smuggling were already suffering from enforcement actions by China’s State Tobacco Monopoly Administration and public security bureaus.
North Korean cigarettes circulating in China include both officially imported products that clear customs and smuggled goods. Local merchants have traditionally handled both types, but intensified enforcement has made Chinese retailers increasingly reluctant to stock North Korean tobacco regardless of its legal status.
“Among smugglers and merchants here, there’s talk that the North Korean cigarette business has become too risky to touch,” the source in China said.
North Korean cigarette factories expand product lines for China market
Despite the enforcement pressure, North Korea continues pushing product diversification to maintain and expand its share of the Chinese market.
Major North Korean tobacco manufacturers including Naehyangsan, Amnokgang, Pyongyang Ryongbong and Taesung are diversifying product specifications from regular to slim and super-slim formats while targeting different consumer preferences. The factories are also releasing new products with varying tar levels to give consumers more choices.
This product diversification strategy by North Korean tobacco plants is driving demand for their cigarettes in China, according to sources there. Demand for North Korean cigarettes in China continues to grow, the sources said.
Competitive pricing also supports demand. North Korean cigarettes sold in China range from 70 to 450 yuan per carton, with mid-priced products between 120 and 200 yuan proving most popular for their value.
Some observers predict that persistent demand for North Korean cigarettes means illegal distribution and sales will continue despite Chinese enforcement efforts.
“Crackdowns might temporarily slow down operators’ activities, but as long as demand exists, distribution and sales will continue in some form,” the source said.
February 03, 2026 at 07:04AM
by DailyNK(North Korean Media)