No foreign tobacco allowed to set up factory in China

A China Tobacco spokesperson has denied the recent rumor that the Chinese government allowed a foreign tobacco company to set up manufacturing facilities in China.

The spokesperson said China prohibits the establishment of a new cigarette factory due to the already saturated cigarette market and has declared setting up a new cigarette factory without government permission would be illegal.

After China's entry to World Trade Organization, cigarette production remains under direct government supervision.