British American Tobacco
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Breaking and re-entering: British American Tobacco in
China 1979–2000
K Lee, A B Gilmore, J Collin
...............................................................................................................................
Tobacco Control 2004;13(Suppl II):ii88–ii95. doi: 10.1136/tc.2004.009258
See end of article for authors’ affiliations
.......................
Correspondence to:
Dr Kelley Lee, Centre on
Global Change and
Health, London School of
Hygiene & Tropical
Medicine, Keppel Street,
London UK WC1E 7HT; kelley.lee@lshtm.ac.uk .......................
C
Objectives: To analyse the strategy used by British American Tobacco (BAT) to re-enter the Chinese market from 1979 to 2000 after historically dominating the market before the 1950s.
Design: Analysis of tobacco industry document files to date available only on-site at the Guildford
Depository operated by BAT. An additional search of recent documents related to BAT, placed in the
Minnesota Depository, was also carried out.
Results: BAT has been committed to regaining its historically dominant position in China since the country reopened to foreign companies in 1979. Initially, BAT remained cautious relative to competitors in seeking joint ventures, finding market access hindered by bureaucratic complexity, restrictions on foreign investment and imports quotas, and later an advertising ban. Instead, the documents suggest BAT strongly relied on illegal imports to expand market presence of State Express 555 and other key brands. It was only when risks to contraband sales increased that the company made greater efforts to establish a legal presence in the country. Attempts to stress the long history of BAT in China and a proclaimed commitment to corporate social responsibility have been used to facilitate later negotiations.
Conclusion: China has remained
Breaking and re-entering: British American Tobacco in
China 1979–2000
K Lee, A B Gilmore, J Collin
...............................................................................................................................
Tobacco Control 2004;13(Suppl II):ii88–ii95. doi: 10.1136/tc.2004.009258
See end of article for authors’ affiliations
.......................
Correspondence to:
Dr Kelley Lee, Centre on
Global Change and
Health, London School of
Hygiene & Tropical
Medicine, Keppel Street,
London UK WC1E 7HT; kelley.lee@lshtm.ac.uk .......................
C
Objectives: To analyse the strategy used by British American Tobacco (BAT) to re-enter the Chinese market from 1979 to 2000 after historically dominating the market before the 1950s.
Design: Analysis of tobacco industry document files to date available only on-site at the Guildford
Depository operated by BAT. An additional search of recent documents related to BAT, placed in the
Minnesota Depository, was also carried out.
Results: BAT has been committed to regaining its historically dominant position in China since the country reopened to foreign companies in 1979. Initially, BAT remained cautious relative to competitors in seeking joint ventures, finding market access hindered by bureaucratic complexity, restrictions on foreign investment and imports quotas, and later an advertising ban. Instead, the documents suggest BAT strongly relied on illegal imports to expand market presence of State Express 555 and other key brands. It was only when risks to contraband sales increased that the company made greater efforts to establish a legal presence in the country. Attempts to stress the long history of BAT in China and a proclaimed commitment to corporate social responsibility have been used to facilitate later negotiations.
Conclusion: China has remained