[Intl-tobacco] Japan Tobacco urges China to open up market to foreign competition

[robert weissman]

AFX News Limited
Japan Tobacco urges China to open up market to foreign competition - report
08.09.2005, 11:18 PM

BEIJING (AFX) - The chief executive of Japan Tobacco, the world's
third-biggest cigarette maker, yesterday urged China to open up its tobacco
market to foreign competition, the Financial Times reported.

Katsuhiko Honda said of the world's single biggest cigarette market: 'The
progress in China has been slow and I have some frustration regarding the
speed with which they are opening their market. Though we have a good
relationship with the Chinese monopoly authorities, the market should be
liberalised as soon as possible.'

China's tobacco monopoly has said that new joint ventures with foreign
manufacturers will not be approved in the near term, the paper said.

Honda said establishing a long-term presence in China in the future is
crucial for the company.

JT's flag-ship cigarette brands are Camel, Winston, Mild Seven and Salem.

At home, JT's smoker base is dwindling, due to rising health consciousness,
more stringent tobacco advertising regulations and Japan's shrinking
population, the paper said.

JT's domestic market share has declined to 66 pct following the termination
of its Marlboro licensing agreement at the end of April.

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