Foreign Ventures: China Signs a Puff Pact

It is a cigarette manufacturer's dream: a market where the laws do not require harsh health warnings on package labels or no-smoking sections in restaurants, and where 250 million people each puff an average of half a pack a day.

For R J. Reynolds Tobacco, the dream has come true in an agreement signed last week in Peking. The pact calls for Reynolds and China to contribute $10 million each to set up a joint venture that will build a factory in the southern Chinese city of Xiamen and produce the first Sino-American cigarette. The new brand, as yet unnamed,...

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