BAT's Chinese deal stuck in neutral

FEW outsiders have made money in China, as British American Tobacco is finding out. It is more than two years since BAT hailed the deal that would allow it to return to the market it dominated until Mao's revolution in 1947.

BAT signed a joint venture with the State tobacco monopoly. But BAT now says: 'We've given up predicting when we'll get the go ahead.' It admits this year's change in leadership of the Communist party has 'slowed things down' even further.

Chairman Martin Broughton emphasised the prize is worth waiting for. China is the world's biggest cigarette market.

BAT is expected to start moves within the next few days to unload its 60% stake in a cigarette plant in Burma, which is known for human rights abuses. The company has been under pressure from the UK Government and blocks of shareholders to get rid of the investment.