igarette brand Marlboro will now be manufactured in China. The China National Tobacco Corporation (CNTC) and Philip Morris International (PMI) have agreed on the licensed production of PMI's Marlboro brand in the country. In accordance with relevant provisions of the Law of the People's Republic of China on Tobacco Monopoly, Marlboro will be produced under licence at CNTC's affiliate factories, and will be distributed by CNTC's official distributors nationwide in China.

According to research firm Euromonitor International, the value of cigarette sales in China grew by over 6 per cent in current terms in 2004 to reach 474.7 billion yuan (US $58.8 billion). However, the doubling of taxation on cigarettes since 2001 has led to the demise of many regional manufacturers. Currently, 90 per cent of the volume sales in the tobacco market is controlled by CNTC. With the entry of foreign cigarette companies like Philip Morris and British American Tobacco, the State Tobacco Monopoly Bureau has been giving protection and support to develop its bigger local companies such as Yuxi Hongta and Shanghai Tobacco.... more