China Premier’s brother steps down from senior role at tobacco monopoly

Premier Li Keqiang's brother has stepped down as deputy head of the powerful state tobacco monopoly, removing a potential conflict of interest as China, the world's biggest tobacco user, battles a major health crisis.

State Tobacco Monopoly Administration vice-director Li Keming had left his role, the Ministry of Human Resources and Social Security said on its website yesterday, listing several other officials who had also stepped down from their positions.

The ministry said Li had been appointed as chairman of a supervisory committee focused on large state-owned enterprises.

The tobacco monopoly wields extraordinary power because it provides an estimated 7 to 10 per cent of government revenue - as much as 816 billion yuan (HK$1 trillion) in 2013. Li Keming, the premier's younger brother, had been the organisation's deputy head since 2003.

Public discussion of top leaders' family lives is generally taboo on the mainland, but Li's position became a target for accusations from anti-smoking activists, who suggested that the central government was too cosy with the monopoly, which controls 98 per cent of the state's vast cigarette market.

There is no indication - despite Li's departure from the position - that the government is preparing to weaken the tobacco monopoly.

The monopoly drew flak from anti-smoking activists last year after its intense lobbying resulted in the weakening of legislation that aimed for a total ban on tobacco advertising, sources said.