China to Tighten Controls on Foreign Tobacco Operations (fwd)

[Robert Weissman <rob@essential.org>]

China to Tighten Controls on Foreign Tobacco Operations

	 BEIJING (July 4) XINHUA - China is starting to tighten controls
on foreign tobacco companies' operations in China, the China Daily
Business Weekly reported on Sunday.

	 The move aims to step up controls on the number of standing
representative offices and the level of sales promotion activities of the
foreign tobacco companies.

	 A circular issued recently by the State Tobacco Monopoly
Administration, the Ministry of Foreign Trade and Economic Co-operation
and the State Administration for Industry and Commerce stipulate that
foreign tobacco companies applying to increase their number of
representative offices to over two will have to meet either of the
following two requirements.

	 -- Over 10 million U.S. dollars in annual cigarette and cigar
exports to China in the previous two years on average.

	 -- Technical co-operation with Chinese cigarette manufacturers
with the permission of the State Tobacco Monopoly Administration.

	 But even for those privileged tobacco companies, the total number
of representative offices will not be allowed to exceed 10.

	 "We have tightened the controls because they are in a mess now, "
an official from the State Tobacco Monopoly Administration, told the
weekly.

	 Few restrictions had been imposed on the number of representative
offices in the past. As a result, some foreign tobacco businesses have
established more than 30 such offices in China.