It is like an old joke, retold again and again: “During the 2008 Olympics, Beijing and other host cities in China went smoke-free.” no it was not, and there is no indication at all that it will be, certainly not in the near future. I do not see any strong backing for this, and as the article in the Chicago Tribune points out – there are many strong opposing forces.
China faces uphill battle against tobacco, as deadline looms to make indoor places smoke-free – chicagotribune.com.
How did it work in other places? Slowly and through pricing. Raising the taxes by 1 Yuan is irrelevant unless you want to maximise tax revenue. Raising it by 100 Yuan would be a clear signal that government does not want tax money from smokers, but would prefer no tax money from non-smokers.