It is estimated that about one million people die from tobacco-related illnesses in China every year. It produces and consumes more than one-third of the world's tobacco, making it the biggest market in the world.
The move comes after China joined The World Health Organisation Framework Convention on Tobacco Control in January. The convention requires members to ban tobacco promotion within five years of signing up.
The ban will not be in place in time for the 2008 Beijing Olympics, but municipal bodies are working towards banning smoking in venues surrounding the Olympic Village.