Chinese crackdown collapses North Korean cigarette smuggling network
- Chinese authorities have ramped up efforts to crackdown on smuggled North Korean cigarettes, leading to a dramatic reduction in their distribution.
- The crackdown has caused significant challenges for Chinese distributors and sellers, who now face threats of arrest and heavy fines.
- As a result, the illicit North Korean cigarette market is struggling to survive, impacting North Korea's revenue generation efforts.
In China, a recent surge in police crackdowns has significantly affected the smuggling of North Korean cigarettes, which have been a major illicit export for North Korea. As of early 2025, this clampdown has resulted in the arrest of multiple distributors and the severe shrinking of the previously robust distribution network. Smuggled cigarettes had enjoyed popularity in China for years due to their low prices and comparable quality to luxury local brands. Nonetheless, harsh penalties, including fines and potential prison sentences, have driven many Chinese traders to abandon the cigarette trade altogether. The increase in enforcement is attributed to a partnership between the State Tobacco Monopoly Administration and police aimed at targeting illicit North Korean imports. Operations have moved aggressively against larger-scale smuggling operations, especially in the northeastern provinces of Liaoning and Jilin. These regions were previously hotspots for contraband distribution, utilizing mail and parcel services for transit. Reports indicate that during this surge in policing, three Chinese cigarette dealers were arrested for their involvement in smuggling activities, showcasing the heightened risks associated with this trade. Despite the price of North Korean cigarettes nearly doubling since before COVID-19, they still remain cheaper than local Chinese alternatives, allowing them to maintain a steady consumer demand. However, with the intensified enforcement actions leading to the shutdown of larger orders, the North Korean trading companies are reportedly struggling to find new distributors in China. Traditional business practices have come to a standstill as distributors and sellers face the grim prospects of hefty fines and legal ramifications. Consequently, many trading company employees are left in a precarious situation as they search for alternative business opportunities. These developments come at a time when North Korea's economy is already under stress from international sanctions that have hampered nearly all lawful trade avenues, leaving cigarette smuggling as one of the few reliable sources of revenue. As a result, it remains uncertain when or if North Korea will regain significant foreign currency earnings from the cigarette trade in the near future, thus impacting its overall economic stability.