Chinese authorities have intensified their crackdown on smuggled North Korean cigarettes, one of Pyongyang’s primary illicit exports, causing the distribution network to shrink dramatically, Daily NK has learned.
Although secretly distributed in China for years and popular among local consumers for their value, the contraband cigarettes now face serious challenges as distributors and sellers are being arrested or fined.
“This month alone, three Chinese dealers handling North Korean cigarettes were arrested for smuggling,” a Daily NK source in North Pyongan province said recently. “Distribution has virtually stopped as Chinese authorities target mail and parcel services in Liaoning and Jilin provinces.”
About 20 cigarette brands from North Korea’s major tobacco factories—including Yalu River Cigarette Company, Pyongyang Unha Tobacco Factory, and Naegohyang Tobacco Factory—were being sold secretly in Chinese markets.
North Korean cigarettes match Chinese luxury brands in quality but cost less, making them consistently popular among Chinese smokers. Despite prices nearly doubling since pre-COVID times, they remain cheaper than local alternatives, maintaining steady demand.
The situation changed abruptly when China’s State Tobacco Monopoly Administration partnered with police to intensify operations against illicit North Korean cigarette imports and distribution.
“Chinese traders now avoid cigarettes as police raid warehouses and seize stores based on tip-offs,” the source explained. “With 200,000 yuan fines and threats of being treated like drug dealers, traders are either complaining or quitting the business.”
Those caught distributing or selling the contraband now face substantial fines or prison sentences.
North Korean trading companies are struggling as cigarette smuggling was one of their reliable revenue sources.
“With sanctions halting regular trade, cigarettes consistently generated income, but even that’s become difficult,” the source said. “Trading company employees are desperately seeking new Chinese distributors, working so hard their hair is turning white.”
Chinese operators who previously ordered over 100 boxes of 50 cartons each have stopped ordering. Those still dealing now order small quantities for tourist area street stalls.
“Police generally overlook small-scale sales by licensed vendors, but with strict enforcement against large operations, North Korea won’t earn significant foreign currency from cigarettes anytime soon.”
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