China has decided not to build any more cigarette, flue-cured tobacco and filter joint venture plants or launch any new tobacco joint ventures with foreign investors.
The decision was made on the grounds that the tobacco market is saturated and has surplus production capacity.
However, cooperation may be launched in other fields. For instance, the import of high quality tobacco leaf, advanced equipment, high grade cigarette paper and other materials is allowed.
Foreign partners are also welcomed to cooperate in research on how to raise the quality of tobacco.
In recent years, based on the tobacco monopolization system, China's tobacco industry has made great efforts to carry through strategic adjustment to the structure of tobacco enterprises. The number of production firms has been reduced to over 80 from 185.
(CRI.com, China.org.cn November 19, 2004)
