State ownership complicates smoking battle in Japan and China

Lunchtime smokers and heat-not-burn cigarette users in Tokyo in 2021: Japan's new government budget reduced the tax gap that favored HNB cigarettes, a move that could benefit state-backed Japan Tobacco. (Sipa via AP Images)

Asian governments reap hefty dividends from control of leading cigarette makers

TOKYO -- Japan's record 122.3 trillion yen ($767.4 billion) annual budget, adopted earlier this month, marked a milestone in the government's efforts to address U.S. demands to boost defense spending.